The Office of the Comptroller of the Currency, a U.S. bank regulator, said Wednesday that is restricting the mortgage servicing activities of HSBC, Wells Fargo and four other banks because they have “not completed the required corrective actions” under the major settlement known as the Independent Foreclosure Review.
Some homeowners who were wrongly denied mortgage modifications or other assistance from Wells Fargo should get relief soon after a federal judge ruled this week that the bank was in breach of a 2010 settlement.
The checks are being sent by the paying agent, Rust Consulting, to replace uncashed checks that have now expired.
Ocwen “caused significant harm” to these homeowners by backdating denial letters in response to proper requests for lower monthly payments, the regulator said.
The most troubling aspect of the report for borrowers compensated under the plan is this excerpt that points to irregularities in the “categories of harm” under which applicants who had qualified for a payout were placed.
The FHFA is currently testing a program in Detroit where Fannie and Freddie would, in partnership with nonprofit companies, lower principal on homes in some of the hardest-hit communities.
Bank of America is on the verge of finalizing a reported $17 billion settlement with the U.S. government over the packaging and selling of bad mortgages, and it would be the biggest single hit taken by a big bank since the financial crisis.
The top Democrat on the House Committee on Oversight and Government Reform is again trying to get to the bottom of what was uncovered during the Independent Foreclosure Review, which…
It’s still not clear how many of the uncashed checks were delivered to the wrong address, though regulators via Rust Consulting, the paying agent, have reissued more than 850,000 checks since autumn.
As this year’s deadline approaches for incomes taxes owed in 2013, mortgage settlement recipients will have to deal with any tax implications. The big question: Will they have to pay taxes on these payouts, which totaled more than $4.5 billion?