Federal regulators now require servicers to employ independent firms to conduct an Independent Foreclosure Review of foreclosure proceedings .
According to an updated topic taken from the office of the Comptroller of the Currency dated February 15, 2012, a requirement was mandated by the “Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision because of enforcement actions against 14 large residential mortgage servicers and two third-party vendors for unsafe and unsound practices related to residential mortgage servicing and foreclosure processing.” (referenced
The reviews will be offered to owner-occupied homeowners that was part of a foreclosure action between January 1, 2009 and December 31, 2010 by one of the participating servicers listed below.
|America’s Servicing Co.||Countrywide||National City Mortgage|
|Aurora Loan Services||EMC||PNC Mortgage|
|BAC Home Loans Servicing||EverBank/EverHome Mtg. Co.||Sovereign Bank|
|Bank of America||Financial Freedom||Sun Trust Mortgage|
|Beneficial||GMAC Mortgage||U S Bank|
|Citibank||HSBC||Washington Mutual (WaMu)|
|Citifinancial||IndyMac Mortgage Services||Wells Fargo Bank, N.A.|
|Citimortgage||MetLife Bank||Wilshire Credit Corporation|
AN INDEPENDENT FORECLOSURE REVIEW IS FREE
Eligible customers were mailed letters from November 1, 2011 through December 31,2011 that explained the Independent Foreclosure Review process and a Request for Review Form.
Examples of Deficiencies in the Foreclosure Process
Some examples of financial injury due to errors, misrepresentations or other deficiencies in the foreclosure process were.
- Foreclosures taking placing while homeowners were still in bankruptcy
- Inaccurate and overstated mortgage balances at the time of foreclosure which was more than what was actually owed.
- Homeowners in the process of being reviewed for loan modifications and foreclosure sale took place.
- Fees and mortgage payments were processed, calculated and inappropriately applied
- Military service members were foreclosed on while on active duty, etc.
If the review finds that you were financially injured as a result of errors, then you will receive a letter with the findings of the view and information about possible compensation or other remedy.
Homeowners should be informed that some states are actively pursuing and implementing laws to protect them from illegal proceedings. When state laws are enacted to protect the homeowner it will prolong the foreclosure process as well as commit the lender/servicer to perform its “due diligence” when seeking a loan modification, short sale or deed in lieu of foreclosure.
The Independent Foreclosure Review has been extended to July 31, 2012. Homeowners are encouraged to participate in the foreclosure review if they have been financially injured due to mortgage servicers errors. If you have not been notified by mail, call
Mon-Fri 8:00 am to 10:00 pm ET
Saturday 8:00 am to 5:00 pm ET
or you may go online to get more information
As of July 8, 2008 California SB 1137 Section 1(c) states as follows:
“Under specified circumstances, mortgage lenders and servicers are authorized under their pooling and servicing agreements to modify mortgage loans when the modification is in the best interest of investors. Generally, that modification may be deemed to be in the best interest of investors when the net present value of the income stream of the modified loan is greater than the amount that would be recovered through the disposition of the real property security through a foreclosure sale.”
Further, Cal. Civil Code 2923.5 and 2923.6 describes the process and procedures that mortgagees, beneficiaries, trustees and servicers implement prior to a foreclosure.
Click here to review California’s Senate bill 1137
You can receive more information by reading the Frequently asked questions and answers here.
New York and Massachusetts have also adopted laws to further protect the homeowner.