A standoff has developed between a group of Democratic lawmakers and bank regulators over the release of shelved results from the Independent Foreclosure Review, which yielded a blanket $9.3 billion settlement — minus any details as to the extent of wrongdoing by mortgage servicers.
The Office of the Comptroller of the Currency wants more authority from Congress to take direct enforcement actions against independent contractors, with the request coming in the aftermath of failed foreclosure reviews conducted by firms hired by lenders.
Critics of the payout schedule put out by bank regulators for eligible borrowers are especially concerned with a wide disparity between those foreclosure victims who sought an independent review and those who did not.
A senior member of the House Financial Services committee wants bank regulators to provide lawmakers updates on payouts that are suppose start Friday and information on other assistance to borrowers in the Independent Foreclosure Review.
Long-delayed compensation to 4.2 million borrowers that were part of the Independent Foreclosure Review will begin April 12, with precise amounts based on the stage of foreclosure and the type of servicer error involved, bank regulators said Tuesday.
Subsidiaries of Bank of America and Morgan Stanley have agreed to pay more than 300 military service members whose homes were unlawfully foreclosed more than $39 million in relief that covers violations of the Servicemembers Civil Relief Act, Justice Department officials said Friday.
A $2 billion effort by regulators to have banks and hired consultants review botched U.S. foreclosures was poorly executed with limited monitoring, ending without compensation for victims despite more than a year of tedious searches through thousands of files.
The postcards from Rust Consulting informing eligible borrowers of a pending payment for foreclosure “deficiencies” are real and not part of a scam or junk mail, Oklahoma’s attorney general said in a special alert after getting calls from confused recipients.
A prominent Washington law firm is suing to get bank regulators to reveal more details behind the failed Independent Foreclosure Review, which after about 18 months and $2 billion spent was mostly scuttled recently in favor of a $9.3 billion settlement.
Up to 4.2 million borrowers are expected to start receiving payments in April as part of a $3.3 billion settlement fund stemming from the so-called Independent Foreclosure Review, a spokesman for the Office of the Comptroller of the Currency told eCreditDaily.