OCC Independent Foreclosure Review Underway

WASHINGTON — The Office of the Comptroller of the Currency today announced that the independent foreclosure review required under the agency’s enforcement actions taken in April 2011 has begun.

Under the enforcement actions taken in April by the OCC, the Federal Reserve, and Office of Thrift Supervision, 14 large mortgage servicers were required to correct deficiencies in their servicing and foreclosure processes and to engage independent firms to conduct a multi-faceted independent review of foreclosure actions that occurred in 2009 and 2010.  Independent consultants are charged with evaluating whether borrowers suffered financial injury through errors, misrepresentations, or other deficiencies in foreclosure practices and determining appropriate remediation for those customers.  Where a borrower suffered financial injury as a result of such practices, the consent orders require remediation to be provided.

"The independent foreclosure review is a significant component of the mortgage servicers’ compliance with our enforcement actions," said acting Comptroller of the Currency John Walsh.  "These requirements help ensure that the servicers provide appropriate compensation to borrowers who suffered financial harm as a result of improper practices identified in our enforcement actions."

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http://www.occ.gov/news-issuances/news-releases/2011/nr-occ-2011-13...