Independent Foreclosure Review Process, Eligibility, and Information

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
On April 13, 2011, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Office of Thrift Supervision announced 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.


Independent Foreclosure Review

As part of those consent orders, federal regulators required servicers to engage independent firms to conduct a multi-faceted review of foreclosure actions in process in 2009 and 2010. Under the orders, independent consultants are charged with evaluating whether borrowers suffered financial injury through errors, misrepresentations, or other deficiencies in foreclosure practices and determining appropriate remediation for those customers. Where a borrower suffered financial injury as a result of such practices, the agencies’ orders require financial remediation to be provided.

As part of that program, the 14 mortgage servicers covered by the enforcement actions will begin mailings November 1, 2011 that will continue through the end of the year. The mailings are intended to provide information to potentially eligible borrowers on how to request a review of their case if they believe they suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings related to their primary residence between January 1, 2009 and December 31, 2010. The mailings will include a request for review form.

Borrowers may also visit www.IndependentForeclosureReview.com for more information about the review and claim process. Assistance with the form and answers to questions about the process are available at 1-888-952-9105, Monday through Friday from 8 a.m. to 10 p.m. (ET) and Saturday from 8 a.m. to 5 p.m. (ET).

Requests for review must be received by April 30, 2012.

The third-party consultant will assess whether any errors, misrepresentations, or other deficiencies resulted in financial injury to borrowers. Where a borrower suffered financial injury as a result of such practices, the consent orders require remediation to be provided. During the review, customers may be contacted by mortgage servicers for additional information at the direction of the independent consultant.


Eligibility for Review

To be eligible, the mortgage must have been active in the foreclosure process between January 1, 2009, and December 31, 2010, the property securing the loan must have been the primary residence, and the mortgage must have been serviced by one of the following mortgage servicers:

  • America’s Servicing Company
  • Aurora Loan Services
  • Bank of America
  • Beneficial
  • Chase
  • Citibank
  • CitiFinancial
  • CitiMortgage

  • Countrywide
  • EMC
  • Everbank/Everhome
  • GMAC Mortgage
  • HFC
  • HSBC
  • IndyMac Mortgage Services
  • Metlife Bank

  • National City
  • PNC
  • Sovereign Bank
  • SunTrust Mortgage
  • U.S. Bank
  • Wachovia
  • Washington Mutual
  • Wells Fargo

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Engagement Letters

The OCC also released engagement letters that describe how the independent consultants, retained by the servicers, will conduct their file reviews and claims processes to identify borrowers who suffered financial injury as a result of deficiencies identified in the OCC’s consent orders. See the engagement letters.


Interim Report

The report, “Interim Status Report: Foreclosure-Related Consent Orders,” summarizes progress on activities related to the independent foreclosure review announced November 1, 2011, as well as other activities to enhance mortgage servicing operations, strengthen oversight of third-party service providers and activities related to Mortgage Electronic Registration Systems (MERS), improve management information systems, assess and manage risk, and ensure compliance with applicable laws and regulations. Read the report.


Frequently Asked Questions

Consumers may have a number of questions regarding how these enforcement actions may affect them. The OCC has provided answers to some of the most anticipated questions in these frequently asked questions.


About the Enforcement Actions

The enforcement actions were based on interagency examinations conducted in the fourth quarter of 2010. A summary of the findings of the interagency reviews is available in the Interagency Review of Foreclosure Policies and Practices, which was produced by the OCC, the Board of Governors of the Federal Reserve System, and the OTS.


Links to the OCC and former OTS Enforcement Actions:


Related Links


 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
Thank you Jeffrey, I just figured since members are starting to get these letters, I would post the information in one place to help them.
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
That would be AWESOME! Oh how I would love to see that happen.
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,806
137
63
I got one sent in mail on Saturday. I am approaching this with caution. I have not been by my house since they threatened me and don't even know if it is sold.
 

freedomwon

LoanSafe Member
Oct 30, 2010
2,794
23
38
California
Jeffrey - Should you decide to follow through with the review, I highly encourage you to include a direct connection between your health issues (including medical bills as back up documentation) and how it financially affected your ability to work. That of course is in addition to everything else. All your documents have been disclosed since you've already been to court numerous times. I don't think your participation in the review process would hinder you in any way.

For others considering the option to participate, I stand by my original thinking over on another thread. This is an opportunity for the banks to mitigate further damages, hide and or conceal evidence and assess how many people out there truly have enough evidence to prove laws have been broken.

btw - I didn't get one in the mail. When I called in, they couldn't even find me in their system. I was transferred to the "independent BofA rep" who in turn entered me into their system. And then I did receive a letter about a month later. Still not sure if I will participate. I still have a couple rabbits in my hat.
 
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rockbottom

LoanSafe Member
Feb 17, 2010
61
1
0
Virginia
I got the letter in November 2011. Have not replied to it....wasn't sure what to do. It said we have till the end of April to apply. We received our letter from the lawyer about default & foreclosure in November 2010 but nothing at all since then. Our BK was discharged in August 2010 with the mortgage included. We have not made any mortgage payments since December 2009. I wonder if this Independent Foreclosure Review thing has anything to do with the delay. I am unsure what to do from here. Any suggestions about this Foreclosure Review stuff??
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,806
137
63
I filled this out today and sent it in. I attached the non notarized Substitution of Trustee of which they noticed three sale dates on my house unlawfully. This is an unsafe and unsound banking practice pursuant to the Consent to Judgment. I also attached the trial mod agreement that I paid 7 payments on time pursuant to the agreement and then they denied me. I showed financial damage by being forced to move and file bankruptcy and causing a credit problem with my business so I could not buy inventory. It is very vague about the financial damage and we will see if this is smoke and mirrors. Freddie mac has been effectively stopped from selling my house on the open market for right now. Maybe in a couple of years after this is all worked out I might be able to return home. Until then I will continue to survive in this economy that is the roughest I have seen in my whole life. I will also continue to help people here resist the criminal banksters.