Foreclosure complaint? Stand by for a new toll free number

--Banks Plan Website, Ad Campaign To Solicit Complaints On Foreclosures

--Lenders Do So Under Orders From US Bank Regulators

--Process Of Finding Affected Borrowers 'Time Consuming,' OCC's Walsh Says

WASHINGTON (Dow Jones)--Major U.S. banks plan to launch a common website, toll-free phone number and advertising campaign in the coming weeks to solicit complaints from consumers harmed by problems in foreclosure processing, a top regulator said Monday.

Last spring, U.S. regulators ordered major banks and thrifts to overhaul their foreclosure practices, finding that 14 lenders filed foreclosures with improper documentation and lacked sufficient staff to properly handle distressed borrowers. The banks have now picked independent consultants to identify any borrowers that were harmed by foreclosure processing problems.

The regulators have decided to require that banks set up a single process for consumers who want a review of their case, rather than a separate one for each mortgage company. Homeowners can request a review if their foreclosure happened on a primary residence in 2009 or 2010.

Acting Comptroller of the Currency John Walsh, speaking at a conference held by the American Banker newspaper, stressed that the reviews will be independent of the mortgage companies.

The process of reviewing foreclosure cases requires a "strong quality control process to ensure each institution is treating cases of financial harm in a consistent way," Walsh said. Any compensation for consumers, he said, will be judged on a case-by-case basis.

The complaint process affects the nation's largest home-loan servicers, including Bank of America Corp. (BAC), J.P. Morgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC). Banks say their reviews haven't uncovered evidence of wrongful foreclosures but have acknowledged weaknesses in their processes.

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