On August 2, the Fed and the OCC extended the deadline for borrowers seeking a review of their mortgage foreclosures under the federal banking agencies’ Independent Foreclosure Review to December 31. The new deadline provides additional time for borrowers to request a review if they believe they suffered financial injury as a result of errors in foreclosure actions on their homes in 2009 or 2010 by one of the servicers covered by enforcement actions issued in April 2011. Fed Release.
Independent Foreclosure Review
Independent Foreclosure Review Remediation Guidance and Extension
On June 21, the OCC and the Fed released guidance to determine the compensation or other remedy that borrowers will receive for financial injury identified during the independent foreclosure review required by consent orders issued in April 2011 to correct deficient mortgage servicing and foreclosure processes. The agencies also announced a two-month extension to September 30 of the deadline for eligible borrowers to request a free review of their mortgage foreclosures under the independent foreclosure review. The OCC also released its second interim report on the status of the independent foreclosure review. Fed Release. OCC Status Report Release.
Extension of Deadline for Independent Foreclosure Review
On February 15, the Fed and OCC announced that the deadline for submitting requests for Independent Foreclosure Review has been extended to July 31. Borrowers are eligible to request an Independent Foreclosure Review if: (i) the mortgage loan was serviced by one of the participating mortgage servicers, which include the 14 large servicers subject to the April 2011 enforcement actions; (ii) the mortgage loan was active in the foreclosure process during 2009 or 2010; and (iii) the property securing the mortgage loan is the borrower’s primary residence. Fed Release.
Independent Foreclosure Review
On November 1, the OCC announced that, in connection with the enforcement actions taken against 14 large mortgage servicers in April 2011, borrowers with foreclosure proceedings on their primary residences initiated by those servicers between January 1, 2009 and December 31, 2010 can request an independent consultant to review the potential foreclosure deficiencies if the borrowers believe they have suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings. The Fed also announced that the four large mortgage servicers subject to enforcement actions that are supervised by the Fed (GMAC, HSBC, SunTrust, and EMC) will be required to conduct this program as part of their compliance with Fed procedures. The independent review is free of charge for borrowers. Requests for review by the servicers’ independent consultants must be received by April 30, 2012. OCC Release. Fed Release.