Deadline Nears on Regulator-Ordered Foreclosure Reviews by 14 Servicers

This week’s headline-grabbing announcement of a $25 billion mortgage settlement with the top five lenders likely confused many homeowners involved in a separate review of foreclosures to be conducted by 14 mortgage servicers and many more affiliates.
Nearly 4 million borrowers participating in the “Independent Review Process” conducted by bank regulators should have gotten letters from the Office of the Comptroller of the Currency by the end of 2011 regarding a potential review of foreclosures filed between Jan. 1, 2009 and Dec. 31 2010.
These borrowers have less than three months to return their “Request for Review” forms. The form must be completed and postmarked no later than April 30, 2012.
Both the Federal Reserve and the OCC announced this week an agreement with the top banks on more than $1 billion in penalties as part of the $25 billion federal-state settlement. The regulators said the banks would pay the fines as part of the bigger settlement. However, the review process already initiated by the OCC will continue through 2012.
“We have worked to coordinate the comprehensive fixes to mortgage servicing and foreclosure practices that we required in our April 2011 cease and desist orders to ensure that work complements actions required by the federal-state settlement,” said acting Comptroller of the Currency John Walsh.
Fourteen major mortgage servicers and their affiliates are required to “correct deficiencies in their servicing and foreclosure processes,” under the April 2011 enforcement actions by the OCC, the Federal Reserve, and the Office of Thrift Supervision that preceded the $25 billion settlement finalized this week.
The servicers and affiliates are also required to engage independent firms for multi-faceted independent reviews of foreclosure actions during those two years.
Borrowers can visit www.IndependentForeclosureReview.com for more information about the review and claim process.
The reviews will determine whether individuals suffered financial injury and should receive compensation or other remedies due to errors or other problems.
Situations that may have led to financial injury include, but are not limited to:

  • The mortgage balance at the time of the foreclosure action was more than you actually owed.
  • Fees charged or mortgage payments were inaccurately calculated, processed or applied.
  • You were doing everything a modification agreement required but the foreclosure sale still happened.
  • The foreclosure action occurred while you were protected by bankruptcy.
  • A foreclosure proceeded on a military member in violation of Service members’ Civil Relief Act protections.

Here are the mortgage servicers and their affiliates that are part of the Independent Foreclosure Review process:

America’s Servicing Co. HFC
Aurora Loan Services HSBC
BAC Home Loans Servicing IndyMac Mortgage Services
Bank of America MetLife Bank
Beneficial National City Mortgage
Chase PNC Mortgage
Citibank Sovereign Bank
CitiFinancial SunTrust Mortgage
CitiMortgage U.S. Bank
Countrywide Wachovia Mortgage
EMC Washington Mutual (WaMu)
EverBank/EverHome Mortgage Company Wells Fargo Bank, N.A.
Financial Freedom Wilshire Credit Corporation
GMAC Mortgage

One thought on “Deadline Nears on Regulator-Ordered Foreclosure Reviews by 14 Servicers

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