Wells Fargo, Chase, HSBC Hammered with Restrictions from OCC

June 17, 2015

 

The Office of the Comptroller of the Currency (OCC) just smashed Wells Fargo, JPMorgan Chase, HSBC and four other banks with huge restrictions due to their failure to comply with the Independent Foreclosure Review (IFR) requirements.  The three other banks included in this major slap-down are; Santander Bank NA, EverBank and U.S. Bank National Association.

 

The OCC has placed heavy restrictions, basically allowing the banks to originate new loans but not allowed to acquire servicing rights or sub-servicing rights to new loans. These new conditions will have enormous impacts on the mortgage industry.

 

Specifically, all six banks cannot acquire residential servicing/servicing rights, new contracts for servicing for other parties, outsourcing or sub-servicing of new residential mortgage servicing activities to other parties, off-shoring new servicing activities, and are prevented from making new appointments of senior officers who are responsible for the servicing risk management and compliance.

 

Wells Fargo and HSBC were the hardest hit in that they are prohibited from acquiring mortgage-servicing rights, new contracts to perform servicing and new offshoring servicing activity until the consent order is terminated. EverBank, Chase, Santander, US Bank National Association will only need prior approval from the OCC on mortgage servicing activity.  

 

All six banks have made statements they are working with the OCC on this and other related-mortgage issues.

 

The IFR was established in 2013 to determine whether eligible homeowners suffered financial injury due to errors and other problems during the foreclosure process between January 1, 2009 and December 31, 2010. So far, the IFR has dispersed more than $2.7 billion to almost 3.2 million borrowers. Almost $280 million has gone unclaimed as of this date. At the end of this year, the OCC will take all uncashed checks, and distribute to the remaining eligible borrowers in another chance to claim more funds.

 

If you are facing foreclosure and need a foreclosure defense attorney, contact our lawyers at 303-618-2122. We can provide immediate help with your foreclosure issues.

 

Gantenbein Law Firm practices other areas of law, to provide legal assistance with all of our clients' needs. If you need a business, real estate, or tax law attorney in Denver, Colorado or surround areas, contact our law firm for your best options at 303-618-2122, or visit our website at www.gantenbeinlaw.com. 

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Gantenbein Law Firm