Independent Foreclosure Review Underway
Federal bank regulators announced that the independent foreclosure review required under enforcement actions taken in April 2011 by the Office of the Comptroller of the Currency, Federal Reserve, and Office of Thrift Supervision) is now underway. Fourteen 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 14 mortgage servicers covered by the enforcement actions began mailing letters today to eligible borrowers that explain how to request a review of their case if they believe they suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings related to their primary residence between January 1, 2009 and December 31, 2010.
Borrowers may also visit http://www.independentforeclosurereview.com/for more information about the review and claim process. Assistance with requesting a review and answers to questions about the process are available at 1-888-952-9105, Monday through Friday from 8 a.m. to 10 p.m. (ET) and Saturday from 8 a.m. to 5 p.m. (ET).
Requests for review must be received by April 30, 2012.
In addition to this outreach and claims program, independent consultants will also review a variety of sample cases from each servicer. Where they identify issues, they will conduct additional secondary reviews to identify as many affected borrowers as possible.
The enforcement actions also require the servicers to correct other deficiencies in residential mortgage loan servicing and foreclosure practices. Work related to correcting these deficiencies is also underway and includes enhancing oversight of third-party foreclosure service providers, upgrading management information systems associated with mortgage servicing and foreclosure processing, and improving communication with customers by establishing a single point of contact and eliminating “dual tracking,” in which servicers continue to pursue foreclosure even though a borrower may have been approved for, or is performing under the terms of a modification or trial modification, among other steps.