Senators Urge OCC to Work with State Attorneys General, DOJ, and HUD to Hold Mortgage Servicers Accountable and Prevent Future Abuse

Senators Urge OCC to Work with State Attorneys General, DOJ, and HUD to Hold Mortgage Servicers Accountable and Prevent Future Abuse

WASHINGTON, DC — Today, a dozen U.S. Senators sent a letter to the Office of the Comptroller of the Currency (OCC) urging the agency to work with State Attorneys General, the U.S. Department of Justice (DOJ), and the U.S. Department of Housing and Urban Development (HUD) to hold mortgage servicers accountable for deficient servicing procedures and improperly foreclosing on homeowners and to develop a comprehensive solution to fix the broken foreclosure process.

Senators Jack Reed (D-RI), Richard Blumenthal (D-CT), Banking Committee Chairman Tim Johnson (D-SD), Judiciary Committee Chairman Patrick Leahy (D-VT), Sheldon Whitehouse (D-RI), Bob Menendez (D-NJ), Daniel Akaka (D-HI), Chuck Schumer (D-NY), Sherrod Brown (D-OH), Dick Durbin (D-IL), Al Franken (D-MN), and Jeff Merkley (D-OR) are calling for the OCC to use the full extent of its significant authority to ensure that the banks and mortgage servicers which created the foreclosure mess help clean it up.

The Senators wrote to John Walsh, the acting head of the OCC: “we urge you to take every opportunity to ensure that servicers not only account for past harms, but also take steps to prevent future servicing deficiencies so that homeowners going forward are treated fairly.”

After several federal agencies and State Attorneys General opened investigations into unscrupulous mortgage practices by major banks, including the use of improperly prepared legal documents and “robo-signers” to sign hundreds of unread foreclosure documents a day, the OCC entered into consent orders with several large banks outlining the widespread problems in mortgage servicing and requiring the servicers to take steps to address those problems.

Yesterday, the OCC announced that at the request of DOJ and to allow coordination of actions with other agencies at the state and federal level, it was giving banks an additional 30 days to file “Action Plans” for how they will comply with the new foreclosure requirements laid out in the OCC’s consent orders.

Because the consent orders announced by the OCC on April 13th did not preclude State Attorneys General from aggressively pursuing a comprehensive solution against banks and mortgage servicers that wrongly foreclosed upon homeowners, the Senators are urging the OCC to work with the State Attorneys General and other regulators to arrive at a comprehensive and robust solution.



OCC Letter Re Consent Orders

9 Responses to “Senators Urge OCC to Work with State Attorneys General, DOJ, and HUD to Hold Mortgage Servicers Accountable and Prevent Future Abuse”
  1. Wayne says:

    Is this the best these Senators can do???? The OCC is a joke at best and part of the problem. Lobbyist and Chicken $hit Senators are the peoples problem. Then there are the Judges and Lawyers who ought to be taken out and beaten this side of their pathetic lives. Let’s not forget our Congress who refuses to do anything. I haven’t a clue what it is going to take to shake things up. Everyone is hesitating and waiting, and waiting for what … for all of it to vanish and go away. I am surprised they haven’t hired Chris Angel. Everyone and I mean everyone knows exactly what’s going on. I truly believe that the Federal Government asked Bank of America to take over Countrywide Loans, which they did. I truly believe that Bank of America was given a Get Out of Jail Free Card for doing it. However the Feds did not know how screwed up Countrywide was. You can say “Poor Bank of America” for doing that but … They knew what they were doing and they thought by offering modifications to make a Contract out of nothing so they could foreclose or hem haw around over and over again till the applicants got frustrated and just packed up and leave their homes. In either case the President’s task force who had close door meeting in both Chicago and Phoenix 2 years ago knew of this problem and they have tried to hide it. They personally did not think the “the Power of the People” was that strong or that smart. Got News For them!!! Let me tell you this though, it is not a Democrat or a Republican thing … It is just Crooked People who are in Office on both sides.
    Believe Jesse Ventura when he says .. “don’t trust the Government” cause they Lie”. He knows.

  2. AS says:

    Clarification, I said “Bank A shortly after filing this foreclosure was cited for multiple violations of servicing loans by the OTC and then debanked.”

    I meant that Bank A who the Foreclosure Mil sent the letter saying they held the note was cited for multiple violations of servicing loans by the OTC just shorty after the same Forclosure Mill filled a Foreclosure Petition alledging Bank B was the holder of the Note and Mortgage! In 2005 Bank a debanked and their assets were then transferred to a LLC servicer that uses the same name as Bank A but without the title FSB. We had never heard of Bank B that prior to their filing a suit and never heard from them after filing. Bank A continured to send bills but does not mention anthing about bank B.

    It is possible that some banks choose to debank and become limited liablity companies simply because they chose not to follow Federal Banking Rules concerning servicing loans.

    This was not one of the loans that were ARM ones it had originally been FHA insured.

  3. AS says:

    Would you believe that a Foreclosure Mill in the Bible Belt is defending fraud and forgery claiming state statutes allows possibly forged or inaccurately signed assignments or Notes or Mortgages to become legal if not contested in 5 years? What happens if it wasn’t even reported these signatures on assignments were even forgeries or Robo signed until more than 5 years from the date the assignment allegedly took place. How do you contest something you are not aware of.

    This Foreclosure Mill is defending not filing assignments with the land department in a timely manor or filing Power of Attorney for Attorney in Fact that are allegedly involved in transferring a note. The attorney for the defendant originally asked for ALL documents and the Plaintiff listed the NOTE as an exhibit to be shown at court, not a copy of the Note, and there was NO mention of allonges. The exhibits filed with the court Petition never showed any allonges at all. No assignment of the note from Bank A to B was filled in the land department or in copies of exhibits with the Plaintiff petition. The plaintiff Bank denied they knew anyone wanted the original note despite the fact a motion to compel was filed and in older briefs and 3 party correspondence it was specifically asked for. The court had already denied the Plaintiff Bank motion for summary judgment. The Foreclosure Mill did not list a copy of the NOTE on their list of exhibits filed during discovery. Now after many years they suddenly appear in court with a original note with allonges stapled to the alleged original note, but showing Attorney in Facts that have never filed POA’s in the county.

    For years Bank A said they held the note, now Bank B who is the current Plaintiff is saying they really held the note all those years Bank A attested to holding it even in court documents and filings.

    It turns out that Bank B was bought by Bank of America, in 2007 and according to wiki bank B started using the name of Bank of America in 2008 but there has not been anything filed with the land department showing that!

    This law firm is listed on a website that allegedly does business with LPS who is being investigated for Robo Signing.. Scott Anderson’s signature varies significantly on many different assignments at the land department and shows up on assignments in this case.

    At the time this case was filed the Foreclosure Mill sent the owner a letter saying Bank A held the note and accused the owner of being in default saying they had 30 days to dispute the debt. The owner disputed it in a timely manor and before the 30 day period ended the Foreclosure Mill filed a foreclosure saying Bank B held the note and Mortgage. They only filed a Lis Pendens at that time.. Three month later the foreclose mill filed a Assignment of Mortgage from Bank A to Bank B. No assignment of the NOTE was ever filed. Bank B is now saying they held the note for over 6 years before the assignment of the Mortgage took place supposedly. The owner had never received anything from Bank B. Bank A shortly after filing this foreclosure was cited for multiple violations of servicing loans by the OTC and then debanked. The attorney told the court he worked for Bank A when asked in court. The only witness that appeared worked for Bank A , they claim now they are a servicer.

    What a MESS!

    The attorney told the court he worked for Bank A when asked in court. The only witness that appeared worked for Bank A , they claim now they are a servicer.

    What a MESS! Let some black citizen forge a document in the Bible Belt and see if they don’t end up in prison.
    This is possibly White Collar Crime, so I guess there will be exceptions. How many from Enron went to Jail. The Mortgage Pass Through Certificates appears in this persons opinion to be nothing more that a HUGE PONZI Scheme designed to keep certain alleged holders of property hidden until one bank gets in trouble and decides to Pass it to an Hidden from all untransparent holder of nothing put a piece of security they get a tiny piece of interest from passing through from the interest the bank hold to the investor who is never a lender!

    There are Attorney Generals in the Bible Belt that do not want to go along with the rest of the AG’s in how to punish the Banks! They seem to be IMO worried about the Bank not the consumer. Maybe I will be wrong.

  4. The OCC could care less, my AIG had them contact me, for what? they are only going to justify their actions. My loan was sold from Band of America/Countrywide to Federal Housing/ changed hands at auction to Fannie Mae so now tell me who is going to go after Federal Housing?? and now the other home is sold to Wells Fargo after over 2 yrs fighting with Band of America; I owned 5 homes due to inheritance/ have lost first home ever acquired, second home is up for shortsell, could not sell any home after everything went upside down, now 3 home that was adjusted by federal housing/perfect payments in 3 yrs, would modify, they modified alright/went right back up to same amount??so I will lose all homes and everything that I have spent my life working for, depleted all Ira/s savings to keep homes upside down 75%, all had 20 down and numerous upgrades, so happy foreclosure! And the OCC will do nothing as well as anyone else it is all lip service.

  5. Kondor says:

    Don’t hold your breath for government to bring justice to the table. It is not good for “business” of the few and the powerful. This is only one broken system that the rich and the scammers get richer on. Only mass rebellion gives chance to secure justice.

  6. I for one, am NOT COUNTING on our government to allow the BANKS to FAIL…and this is what it may take to SATISFY the clouded titles. Any legistration lobbying for a QUICK FIX is more BOGUS CRAP. We need to get moving and PROTEST. How did the New York protest pan out on flag day, yesterday.? Anyone out there have any first hand knowledge? I wanted to go .but was too sick with my lung C.O.P.D.

  7. lies all of it says:

    you are right he satan-ors wont help us we all tried. writing letters to the local office and all we are told is we can make sure wells fargo gets my paper work. and then what are they going to make sure i get the modification and it willl be permanebt and do they know who gets our payment? i have 9 missing never applied to my mortgage. so no they cant help or just dont want to lose their campaign contributions?

  8. Bobbi Swann says:

    This is BS and just propaganda for the public with election time around the corner to make the people believe that hey, as your elected Senator I am pushing forward on getting real answers to the fraudclosure problem…..paleeze. Did not see one word in there asking for prosecution of the crimminal acts, did you? Shame on you if you believe any of this crap!

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