The Office of the Comptroller of the Currency (OCC) and the Federal Reserve have released amendments to their enforcement actions against 13 mortgage servicers for deficient practices in mortgage loan servicing and foreclosure processing. The amendments require the servicers to provide $9.3 billion in payments and other assistance to borrowers.
The amendments memorialize agreements in principle announced in January with Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank and Wells Fargo. The amount includes $3.6 billion in cash payments and $5.7 billion in other assistance to borrowers, such as loan modifications and forgiveness of deficiency judgments.Â
According to the regulatory agencies, borrowers covered by the amendments include 4.2 million people whose homes were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of the companies listed above. These borrowers will be contacted by the paying agent, Rust Consulting Inc., by the end of March with payment details. Borrowers covered by the amendments are expected to receive compensation ranging from hundreds of dollars up to $125,000.
The agencies add that three companies that did not enter into January's settlement – GMAC Mortgage, Everbank and OneWest – will continue to the Independent Foreclosure Review process.