Fed Orders Review of Foreclosures by Morgan Stanley's Saxon Unit

Morgan Stanley will review foreclosures by its former Saxon Mortgage Services subsidiary and reimburse homeowners who “suffered financial injury” from wrongful actions or other deficiencies, according to a settlement order with the Federal Reserve.
The Fed said today that an independent consultant will review foreclosure proceedings initiated by Saxon that were pending at any time in 2009 or 2010.
The central bank said the order addresses a “pattern of misconduct and negligence in residential mortgage loan servicing and foreclosure processing” at Saxon.
Morgan Stanley has sold a substantial portion of the assets of Saxon to Ocwen Financial Corporation and has it is ending its involvement in residential mortgage servicing.
Prior to the sale, Saxon was the 34th largest mortgage servicer in the United States.
The Saxon foreclosure review will be performed and supervised in the same manner as other independent reviews underway at several large mortgage servicers that consented to enforcement actions by regulators last year.
In addition to any compensation to homeowners, Morgan Stanley will have to pay financial penalties that have yet to be determined, the Fed said.

One thought on “Fed Orders Review of Foreclosures by Morgan Stanley's Saxon Unit

  • April 7, 2012 at 9:25 am

    I fully appreciate the opinions of people that state things like “if you live outside of your means and enter into a mortgage or contract for a property you can’t afford, then it’s your own stupid fault and a foreclosure is inevitable – although it’s somewhat the banks responsibility also to not be so greedy etc”. I don’t disagree, I think it’s the individuals responsibility to study any contract they get themselves into carefully, and to ensure they will be making payments they can cope with. However, I was made redundant and could no longer pay the bills in full. I’m hard working and struggled to find new work in my area, I received a foreclosure notice and when you’re supporting a family it’s one of the most stressful and sickening experiences to go through. I fortunately stumbled on a little blogger site with an article that recommended a website that could help http:// whatliesinyourdebt.com
    Blogger site if you’re interested http://cleanforeclosure.blogspot.co.uk

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