Less than 165,000 borrowers have applied for an independent review of possibly botched foreclosures as of April 30 — that’s only 4 percent of 4.1 million who received letters from U.S. regulators, according to the Office of the Comptroller of the Currency.
Under the so-called “Independent Foreclosure Review,” audits are underway of foreclosures processed in 2009 and 2010.
More than 4 million borrowers have been notified for possible compensation as a result of “errors, misrepresentations, or other deficiencies in foreclosure proceedings.”
Eligible borrowers have to return their “Request for Review” forms by the end of July.
The form must be completed and postmarked no later than July 31, 2012. The deadline had been extended from April 30 to allow more time for borrowers to return their official audit requests.
The OCC-led campaign is separate from the much more publicized $25 billion mortgage settlement between state and federal authorities and the top five U.S. lenders announced Feb. 9. The eligibility process tied to the settlement has yet to be fully determined.
The Independent Foreclosure Review, however, was initiated more than one year ago by regulators.
Fourteen major mortgage servicers and affiliates are required to “correct deficiencies in their servicing and foreclosure processes,” under the April 2011 actions by the OCC, the Federal Reserve, and the Office of Thrift Supervision that preceded the $25 billion settlement.
Servicers are permitted to choose their own auditors to review the claims. However, federal officials say they are making sure that consultants hired to review foreclosures will report to regulators – not the banks.
Borrowers can visit www.IndependentForeclosureReview.com for more information about the review and claim process.