OCC Imposes $70 Million Fine Against National Bank for Allegedly Violating Mortgage Servicing Consent Order

Goodwin
Contact

On May 25, the Office of the Comptroller of Currency (OCC) entered a consent order with a national bank stemming from allegations that the bank violated a 2011 consent order concerning its mortgage servicing related activities.  The OCC alleged that the bank had violated the consent order during the period from October 1, 2014 through August 31, 2015, by (1) identifying active accounts for which a Payment Change Notice (PCN) should have been filed, but nonetheless failing to do so in a timely manner; and (2) making escrow calculation errors on 76,720 accounts because of an error in the bank’s proprietary loan software tool. The OCC found that the bank’s escrow calculation errors resulted in 184 incorrect loan modification denials. The consent order requires the bank of pay a $70 million civil money penalty.  The OCC simultaneously issued an order terminating the 2011 consent order against the bank.

Written by:

Goodwin
Contact
more
less

Goodwin on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.