Federal Reserve Plans To Fine Eight Banks On Foreclosure Abuse

Posted by Orb Staff on March 20, 2012 No Comments
Categories : Mortgage Servicing

11137_blurrydollar Federal Reserve Plans To Fine Eight Banks On Foreclosure Abuse The Federal Reserve is planning to issue fines against eight bank holding companies for alleged improper foreclosure procedures against homeowners.

The Washington Post reports that Suzanne G. Killian, senior associate director at the Federal Reserve's division of consumer and community affairs, announced the planned fines during testimony before a hearing of the House Committee on Oversight and Government Reform. The eight companies being targeted are EverBank, Goldman Sachs Group, HSBC Holdings PLC, PNC Financial Services Group, MetLife, OneWest Bank, SunTrust Banks and U.S. Bancorp. None of these companies was among the five banks that were part of the $25 billion foreclosure settlement announced last month.

Killian stated in her testimony that the fines were ‘appropriate,’ but she did not detail what these companies were being charged with or what the Federal Reserve is considering for its enforcement. The Federal Reserve has not made any official announcement on this subject.

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