When mortgage servicers signed consent orders with the Office of the Comptroller of the Currency and the Federal Reserve, these companies were required to hire outside firms to conduct "look back" evaluations of questionable foreclosure practices.
But these reviews will not be made public, according to an OCC spokesman.
Major servicing arms at Bank of America (BAC: 11.93 -2.21%), JPMorgan Chase (JPM: 43.15 -2.13%), Wells Fargo (WFC: 27.93 -1.06%), Citigroup (C: 41.53 -2.10%), Ally Financial (GJM: 24.1601 -0.08%) and others agreed to the enforcement actions taken in April as a result of mishandled foreclosures still being corrected.
Servicers have to put in place new operations, add staff, establish a single-point of contact for borrowers and end the practice of pursuing a foreclosure while evaluating a possible modification.
The banks were also required to hire third-party firms to review foreclosure proceedings between Jan. 1, 2009 and Dec. 31, 2010. The reviews will be done to identify borrowers who suffered financial harm because of faulty foreclosure practices. The OCC and Fed will approve which companies conduct the reviews.
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