Mortgage servicers making progress on fixing bad foreclosures
Banks were required to hire consultants to identify borrowers who improperly lost their homes, failed to get loans rewritten or were forced into court in 2009 and 2010 because of mistakes made by mortgage servicers or their vendors.
For information about filing a claim: www.independentforeclosurereview.com/
Banks and mortgage servicers are making progress in improving their processes and contacting homeowners hurt by invalid or flawed foreclosures, the Office of the U.S. Comptroller of the Currency (OCC) reported.
The regulator released an interim report Tuesday on actions taken by 12 banks and servicers to comply with April consent orders that require them to correct deficient and unsound foreclosure practices.
"While much of the work to correct identified weaknesses in policies, operating procedures, control functions and audit processes will be substantially complete in the first part of 2012, other longer-term initiatives will continue through the balance of 2012," the OCC report concluded.
Under the consent decrees, banks were required to hire consultants to identify borrowers who improperly lost their homes, failed to get loans rewritten or were forced into court in 2009 and 2010 because of mistakes made by mortgage servicers or their vendors.
Banks and their consultants, under the OCC's oversight, will determine who was harmed, the extent of any financial injury and the amount of compensation.
The move is part of a settlement between the biggest mortgage-servicing firms, the OCC, the Federal Reserve and the Office of Thrift Supervision.
Mortgage servicers this month began contacting borrowers who may have suffered financial injury from errors and misrepresentations.
The companies also established a central website to help borrowers contact servicers and file claims.
Companies including JPMorgan Chase, Citigroup and Wells Fargo were part of the April accord.
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