Banks Must Pay Victims of Botched Foreclosures, Regulators Say |
| Bloomberg - Apr 13, 2011 |
The 14 largest U.S. mortgage servicers must pay back homeowners for losses from foreclosures or loans that were mishandled in the wake of the housing collapse, according to a consent decree released today.
The agreement between the servicers and U.S. regulators imposes more substantial penalties than early reports of the deal indicated. It could also help the U.S. Justice Department determine the size and scope of any future fines for the flawed practices, regulators said.
The banks, including JPMorgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC), agreed in the settlement to conduct a review of all loans that went into foreclosure in 2009 and 2010. They also agreed to improve their foreclosure, loan modification and refinancing procedures by hiring staff, upgrading document-tracking systems, assigning a single point of contact for each borrower and policing lawyers and vendors.
Read Full Article from Bloomberg
- Posted: 2011-04-13 12:59:32
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