Only 3% of Millions Eligible Apply for Foreclosure Review

Just 136,000, or 3 percent of those eligible, have applied for a review of possibly botched foreclosures by mailing in forms requesting an audit, according to the Office of the Comptroller of the Currency, the primary bank regulator overseeing the program.
Under the so-called “Independent Foreclosure Review,” audits are underway of foreclosures processed in 2009 and 2010. Four million borrowers have been notified by U.S. regulators for possible compensation as a result of “errors, misrepresentations, or other deficiencies in foreclosure proceedings.”
Eligible borrowers have to return their “Request for Review” forms by the end of July. The form must be completed and postmarked no later than July 31, 2012. The deadline was recently extended from April 30 to allow more time for borrowers to return their official audit requests.
Mailings to the 4 million estimated eligible borrowers were sent out by the end of last year.
The OCC campaign is separate from the much more publicized $25 billion mortgage settlement between state and federal authorities and the top five U.S. lenders announced Feb. 9. The eligibility process tied to the settlement has yet to be fully determined.
The Independent Foreclosure Review, however, was initiated one year ago by regulators.
Fourteen major mortgage servicers and affiliates are required to “correct deficiencies in their servicing and foreclosure processes,” under the April 2011 actions by the OCC, the Federal Reserve, and the Office of Thrift Supervision that preceded the $25 billion settlement.
The reports that the review of foreclosures has been plagued by complaints that it lacks sufficient independence from the lenders who committed the foreclosure errors in the first place.
Servicers are permitted to choose their own auditors to review the claims. Federal officials say they are making sure that consultants hired to review foreclosures will report to regulators – not the banks.
Borrowers can visit for more information about the review and claim process.

2 thoughts on “Only 3% of Millions Eligible Apply for Foreclosure Review

  • April 9, 2012 at 11:15 am

    I applied for a review back in Jan, US Bank “lost” my letter. I filed a complaint with the occ last month and its supposedly “under review”. There is no teeth in any of these reviews and the banks and the occ for that matter could care less if they broke the law. They know that all they need to do is pay a small fine and they will be given immunity from the law and can continue to do business as usual. Which means tax payer bailouts for banks and gse’s and underwater homes and fraudclosures for the middle class.

  • April 19, 2012 at 11:59 am

    I responded to mine a couple of weeks, my lender is HSBC/HFC/Beneficial. I responded with a 66 page response/supporting docuementaion and assured delivery, paid a few buck and mailed it certified. So far, they have been pleasant, and sent an acknowledgement letter. To further escalate my particular situation, i sent this package/response for an independent foreclosure review to my attorney general. I remain hopful.

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