The Federal Reserve Board issued enforcement actions against four large mortgage servicers
--GMAC Mortgage, HSBC Finance Corporation, SunTrust Mortgage, and EMC Mortgage Corporation--in April 2011. Under those actions, the four servicers were required to retain independent consultants to review foreclosures that were initiated, pending, or completed during 2009 or 2010. The review is intended to determine if borrowers suffered financial harm directly resulting from errors, misrepresentations, or other deficiencies that may have occurred during the foreclosure process. The servicers are required to compensate borrowers for financial injury resulting from deficiencies in their foreclosure processes.
The federal Office of the Comptroller of the Currency has also required the following mortgage servicers to provide the independent review and compensation:
|America's Servicing Company||Countrywide||National City Mortgage|
|Aurora Loan Services||EMC Mortgage Corporation||PNC Mortgage|
|BAC Home Loans Servicing||EverBank/EverHome Mortgage Company||Sovereign Bank|
|Bank of America||Financial Freedom||SunTrust Mortgage|
|Beneficial||GMAC Mortgage||U.S. Bank|
|Citibank||HSBC||Washington Mutual (WaMu)|
|CitiFinancial||IndyMac Mortgage Services||Wells Fargo Bank, N.A.|
|CitiMortgage||MetLife Bank||Wilshire Credit Corporation|
The Federal Reserve Board has extended the deadline for independent review until July 31, 2012. The reviews are being done free of charge. Click here to find out if you are eligible.
You can also view a video produced by the Federal Reserve which is on the top right of this blog.