OCC Calling for Reviews of 4.5 Million Foreclosures Saying that in-house review will not be “nearly enough to answer all questions” about loans serviced by 14 major servicers and lenders, acting Controller of the Currency John Walsh has called for an independent review of 4.5 million loans that faced foreclosure action between January 2009 and December 2010. The Office of the Comptroller of Currency (OCC) hopes to identify borrowers who “suffered financial injury as a result of errors, misrepresentations or other deficiencies in the foreclosure process,” said Walsh. At the time of his announcement, he also introduced a new “transparent, easily accessible complaint process” that borrowers who feel that they fall within this category can use to become part of the review. In cases in which reviewers determine that financial harm was sustained, servicers must make “appropriate restitution,” said Walsh, adding that because the review and remediation processes will be specific, “remedies could vary substantially.”
Servicers under review include Bank of America, JPMorgan Chase and Wells Fargo. All servicers previously signed consent orders to this type of review with the OCC. Walsh called the review the “most ambitious and complex aspect” of the settlement between the OCC and the servicers and predicted that the process will take months. He added that he wished “there was a faster way…but the fact is that this process [of fixing what’s broken] will take some time to complete.”
Do you think that borrowers will get the damages they are due?
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