Report Blasts Foreclosure Practices

May 1, 2014
Boston Globe 
mortgage lending news
The federal Office of the Comptroller of the Currency has released its analysis of the Independent Foreclosure Review, a short-lived process that sought to quantify wrongful foreclosures at the peak of the mortgage crisis.

The report revealed that more than 50 percent of the errors identified in the audits before they were terminated last year and replaced with cash settlements to borrowers were tied to administrative flaws and improper fees charged to homeowners during the foreclosure process. At least 9 percent of the errors, meanwhile, arose from banks improperly rejecting loan workouts that would have prevented foreclosures.

The OCC report also showed that banks had not made much progress before the reviews ground to a halt, with Bank of America going over just 6 percent of its foreclosure files and Wells Fargo scrutinizing about 9.6 percent. With the filed they had reviewed so far, the two banks were found to have error rates of 8.9 percent and 11.4 percent, respectively.









Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`