Plans to Remedy Servicer Errors Completed by Nine Companies

by devteam February 28th, 2012 | Share

The Federal Reserve Board has posted on-line action plans developed by ninernof its supervised financial institutions to correct deficiencies in theirrnresidential mortgage loan servicing and foreclosure processing.  The action plans were required by formalrnenforcement actions issued by the Federal Reserve last year after reviewsrnconducted from November 2010 to January 2011 uncovered unsafe and unsoundrnprocessing and practices at a number of supervised institutions.</p

The action plans released today were prepared by Bank of America, Citigroup,rnEverbank, JPMorgan Chase, MetLife, PNC, SunTrust, U.S. Bancorp, and WellsrnFargo.  The Federal Reserve said thatrnother action plans would be forthcoming.</p

The Federal Reserve had demanded the action plans to describe, among otherrnthings, how the institutions will strengthen communications with borrowers byrnproviding each borrower the name of a primary point of contact, establish limitsrnon foreclosures where loan modifications have been approved, establish robustrnthird-party vendor controls, and strengthen compliance programs.  The parent companies of servicers were also requiredrnto submit plans to describe how they would improve oversight of theirrnsubsidiaries.</p

In addition, the enforcement actions also require the mortgage servicingrncompanies to provide appropriate remediation to borrowers who sufferedrnfinancial injury as a result of errors by the servicers and required that thernservicers hire an independent consultant to review foreclosure files.  The Federal Reserve said it was releasingrnengagement letters between the financial institutions and independentrnconsultants, however the only ones immediately apparent among the hundreds ofrnpages released today were those between JPMorgan and Deloitte & Touche, LLPrnand between SunTrust and PricewaterhouseCoopers LLC. </p

The Federal Reserve said it will closely follow the implementation of the actionsrnplans to ensure that the financial institutions correct the identifiedrndeficiencies and evaluate any harm done to homeowners through foreclosures inrn2009 and 2010.</p

The action plans can be found here.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...