Federal regulators sanction mortgage servicers for foreclosure debacle

The Office of Comptroller of the Currency and the Federal Reserve forced the 10 largest mortgage servicers Wednesday to establish new foreclosure processes after their investigation into misconduct was uncovered last year.


The Fed said sanctions in the form of fines will be included in addition to the corrective actions, but will be announced at a later date.

In 2010, employees at the largest mortgage servicers were found to be mishandling the entire loss mitigation process from modification to foreclosure.

As the problems surfaced, federal regulators and the 50 state attorneys general launched investigations. The AGs are expected to conclude a settlement negotiation in the coming months.

The OCC and the Fed signed consent orders with Bank of America (BAC: 13.2575 -1.58%), JPMorgan Chase (JPM: 46.085 -1.19%), Wells Fargo (WFC: 30.75 -2.07%), Citigroup (C: 4.485 -1.43%), Ally Financial (GJM: 23.83 -0.04%), HSBC North America Holdings (HBC: 53.63 +0.26%), PNC Financial Services (PNC: 62.69 -0.70%), U.S. Bancorp (USB: 26.21 -0.57%), MetLife (MET: 44.15 -1.38%) and SunTrust Banks (STI: 28.99 -2.06%).

Read on.

• Interagency Review of Foreclosure Policies and Practices (461 KB PDF)

• Consent Order for Bank of America Corp. (34 KB PDF)

Consent Order for Citigroup Inc. and CitiFinancial Credit Co. (28 KB PDF)

• Consent Order for Ally Financial, Inc., ResCap, GMAC Mortgage, and Ally Bank (87 KB PDF)

• Consent Order for HSBC North America Holdings, Inc. and HSBC Finance Corp. (76 KB PDF)

• Consent Order for JPMorgan Chase & Co. and EMC Mtge. (39 KB PDF)

• Consent Order for MetLife, Inc. (25 KB PDF)

• Consent Order for PNC Financial Svs. Group, Inc. (25 KB PDF)

• Consent Order for SunTrust Banks, Inc., SunTrust Bank, and SunTrust Mortgage (76 KB PDF)

• Consent Order for U.S. Bancorp (25 KB PDF)

• Consent Order for Wells Fargo & Co. (25 KB PDF)

• Consent Order for LPS (47 KB PDF)

• Consent Order for MERS (48 KB PDF)