Federal Reserve Board Announces Additional Foreclosure Review Settlement

more+
less-

On July 26, the Federal Reserve Board released an amended consent order with one of the several financial institutions that entered into a consent order in April 2011 to resolve allegations that the institutions engaged in improper mortgage servicing and foreclosure processing practices. The agreement follows numerous others released earlier this year. Under this latest agreement the institution will pay roughly $230 million, including $32 million to satisfy its obligation to provide loss-mitigation assistance since it no longer owns a significant residential mortgaging portfolio. Together, all the amended consent orders will provide approximately 4.4 million borrowers a total of more than $3.8 billion in cash compensation while an additional $5.8 billion will be provided by the servicers in commitments for loss-mitigation assistance, such as loan modifications and forgiveness of deficiency judgments. For the participating servicers, the amendments also replace the requirements related to the Independent Foreclosure Review process set out under the original consent orders.

Topics:  Federal Reserve, Foreclosure, Mortgage Servicing Rules, Mortgages, Settlement

Published In: General Business Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »