Interagency Review of Foreclosure Policies and Practices

Dena M. Roudybush, General Counsel for Compliance Counsel and WMAL's Rick Fowler discuss the recent Interagency Review of Foreclosure Policies and Practices conducted by the Federal Reserve System, the Office of the Comptroller of the Currency (OCC), the Federal Deposit, Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS).

In conjunction with their interagency report on foreclosure processing and management deficiencies at the 14 largest mortgage servicers during 2010, the primary bank regulators are taking enforcement action against the banking organizations and affiliates under their jurisdiction. Each of the regulators announced their respective enforcement orders. The mortgage servicers have been ordered to address a pattern of misconduct and negligence related to deficient practices in residential mortgage loan servicing and foreclosure processing, including compliance failures, oversight deficiencies, and unsafe and unsound practices. The enforcement orders are briefly as follows:

•Federal Reserve Board — formal enforcement actions against 10 banking organizations and 3 affiliated servicing entities;

•Office of the Comptroller of the Currency — formal enforcement actions against 8 national bank mortgage servicers and 2 third-party service providers and their affiliates;

•Office of Thrift Supervision — formal enforcement actions against 4 savings institutions that service mortgage loans and the parent companies of 2 of those institutions;

•Federal Deposit Insurance Corporation — participated in the interagency investigation as the back-up regulator to protect the interests of the Deposit Insurance Fund and is a signatory to one of the enforcement orders in its role as the primary federal regulator of an insured depository institution whose loans were serviced by an affiliated servicer within the holding company.

The agencies also announced that the targets of their investigation that were found to have engaged in unsafe and unsound practices will pay monetary penalties. For more information on the enforcement orders and the identity of the banking organizations and affiliates, paste each of the following links into your browser window:

•FRB: http://www.federalreserve.gov/newsevents/press/enforcement/20110413a.htm
•OCC: http://www.occ.treas.gov/news-issuances/news-releases/2011/nr-occ-2011-47.html
•OTS: http://www.ots.treas.gov/?p=PressReleases&ContentRecord_id=4fe2bb15-be56-...
•FDIC: http://www.fdic.gov/news/news/press/2011/pr11069.html
The regulators' report, Interagency Review of Foreclosure Policies and Practices, is linked: http://www.federalreserve.gov/boarddocs/rptcongress/interagency_review_forecl...

Category:

News & Politics

Tags:

• Mortgage Banking
• Foreclosure
• mortgage crisis
• The Federal Reserve System
• Ally Bank/GMAC
• Aurora Bank
• Bank of America
• Citibank
• EverBank
• HSBC
• JPMorgan Chase
• MetLife
• OneWest
• PNC
• Sovereign Bank
• SunTrust
• U.S. Bank
• Wells Fargo. MERS
• MERSCORP