The OCC and the FRB announced amendments to their prior enforcement actions against mortgage servicers for deficient practices in mortgage loan servicing and foreclosure processing. The amendments memorialize agreements in principle with several large banks announced in January (see January 10, 2013 Alert) and will require the servicers to pay $3.6 billion in cash and $5.7 billion in other assistance to borrowers (e.g., loan modifications and forgiveness of deficiency judgments). The amendments will allow borrowers whose homes were in some stage of the foreclosure process in 2009 and 2010 and serviced by one of the banks subject to the amended consent orders to receive cash payments and other assistance. The mortgage servicers are expected to undertake loss mitigation efforts focused on foreclosure prevention and both OCC and FRB examiners will continue to monitor the servicers’ implementation of corrective actions required by the original enforcement actions. The amendments replace requirements related to the Independent Foreclosure Review for the mortgage servicers. For servicers that did not enter agreements with the OCC and FRB, the Independent Foreclosure Review process will continue.
Consumer Financial Services
© 2015 Goodwin Procter LLP. All rights reserved. This informational piece, which may be considered advertising under the ethical rules of certain jurisdictions, is provided with the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin Procter LLP, Goodwin Procter (UK) LLP or their attorneys. Prior results do not guarantee similar outcome.
Goodwin Procter LLP is a limited liability partnership which operates in the United States and has a principal law office located at 53 State Street, Boston, MA 02109. Goodwin Procter (UK) LLP is a separate limited liability partnership registered in England and Wales with registered number OC362294. Its registered office is at Tower 42, 25 Old Broad Street, London EC2N 1HQ. A list of the names of the members of Goodwin Procter (UK) LLP is available for inspection at the registered office. Goodwin Procter (UK) LLP is authorized and regulated by the Solicitors Regulation Authority.