consent orders

Amendments to Fed and OCC Foreclosure Consent Orders

On February 28, the OCC and the Fed released amendments to their consent orders against 13 mortgage servicers for deficient practices in mortgage loan servicing and foreclosure processing.  The amendments memorialize the previously announced agreements with the mortgage servicers and require them to provide $9.3 billion in payments and other assistance (including loan modifications and forgiveness of deficiency judgments) to borrowers.  Joint Release.

OCC Issues Consent Orders Against Eight Major Banks, Lender Processing Services, and MERSCORP for Foreclosure Practices

On April 13, 2011, the Office of the Comptroller of the Currency (“OCC”) announced consent orders and enforcement actions against eight national bank mortgage servicers (Bank of America, Citibank, HSBC, JPMorgan Chase, MetLife Bank, PNC, U.S. Bank, and Wells Fargo) and two third-party servicers (Lender Processing Services and subsidiaries, and MERSCORP and subsidiaries (including MERS)). The enforcement actions require each servicer to correct claimed deficiencies identified in the OCC’s 2010 Fourth Quarter review, make improvements in servicing and foreclosure processing practices, establish oversight and control over third-party vendors (including outside legal counsel that provide default management or foreclosure services), and perform a multi-faceted review of foreclosure actions from January 1, 2009 to December 31, 2010 through an independent firm. The independent review must assess whether the servicers complied with federal and state laws regarding foreclosures and whether they caused any financial injury to borrowers. The servicers must also remedy all financial injuries to borrowers identified in the independent review. The consent orders do not preclude civil money penalties, which the OCC may assess at a future date. OCC Press Release. Interagency Review of Foreclosure Practices.