Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement


Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement

WASHINGTON — The Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board today released amendments to their enforcement actions against 13 mortgage servicers for deficient practices in mortgage loan servicing and foreclosure processing.  The amendments require the servicers to provide $9.3 billion in payments and other assistance to borrowers.

The amendments memorialize agreements in principle announced in January with Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.  The amount includes $3.6 billion in cash payments and $5.7 billion in other assistance to borrowers such as loan modifications and forgiveness of deficiency judgments.

Borrowers covered by the amendments include 4.2 million people whose homes were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of the companies listed above.  These borrowers are expected to be contacted by the Paying Agent—Rust Consulting, Inc.—by the end of March 2013 with payment details.  The Paying Agent will send payments and correspondence.

Borrowers covered by the amendments are expected to receive compensation ranging from hundreds of dollars up to $125,000.  Borrowers are not required to take any additional steps to receive the payments.  In addition, borrowers will not be required to execute a waiver of any legal claims they may have against their servicer as a condition for receiving payment.

Borrowers can call the Paying Agent at 1-888-952-9105 to update their contact information or to verify that they are covered by the amendments.

In providing the $5.7 billion in assistance, the 13 servicers are expected to undertake well-structured loss mitigation efforts focused on foreclosure prevention, with preference given to activities designed to keep borrowers in their homes through affordable, sustainable, and meaningful home preservation actions.

Borrowers seeking assistance should work directly with their servicer or a counselor approved by the U.S. Department of Housing and Urban Development (HUD).  Borrowers can reach HUD-approved counselors by calling 888-995-HOPE (4673).

OCC and Federal Reserve examiners continue to monitor the servicers’ implementation of corrective actions required by the original enforcement actions to address unsafe and unsound mortgage servicing and foreclosure practices.

For the 13 servicers, these amendments to the enforcement actions replace the requirements related to the Independent Foreclosure Review.  For GMAC Mortgage, Everbank, and OneWest, which did not enter agreements in principle with federal regulators, the Independent Foreclosure Review process continues.  Regulators expect the reviews for these servicers to be completed over the course of the coming year.  These companies service 457,000 mortgages that were in some stage of foreclosure in 2009 or 2010.

Related Links



13 Responses to “Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement”
  1. “The amount includes $3.6 billion in cash payments ” It just really gets me so mad to see this. Most don’t even know this is the same amount the state of California allows for MISTAKES in their section 8 housing budget… A YEAR!!!

  2. thegrey55 says:

    Riddle me this: As of December 31, 2012 the total number of requests for the IFR program was somewhere around 500,000 homeowners or former homeowners. So in comes the OCC and scraps the IFR program saying that this new Amended program will benefit over 4 million homeowner and it will do it faster than previously possible under the original program.

    Now, if as some have suggested the Banks are going to limit the payouts to $200 a head (which is highly likely, with the ocassional larger payment thrown in for good measure)then the Banks liability under the IFR program was somewhere around $10 million, plus or minus. However, under this new Amended Agreement, even at 2 or 3 hundred per homeowner, that liability is now in excess of $80 million. Found near the end of the Amendment to the original consent decree, which dates back to 2011 and includes the IFR agreement from 2012 there’s a small paragraph that mentions something about credits received by the Banks towards their total obligations under the agreement at a ratio of 7-10:1 for every dollar committed to the cash fund portion of the agreement.

    This credit for the Banks could easily reach a Billion dollars and beyond with less than a $100 million of actual cash out of of pocket. And I remind you that the pocket it’s coming out of is yours and mine to begin with. It is sad but true that our government thinks us all so stupid that we can’t do the math.

    Screwed again and again and again.

    AFANG Americans For a New Government: The Constituional Right of the People to displace and remove our present form of government when that government, by its actions, has ceased to be a government of the People, by the People and for the People.

  3. Linda says:

    They got it wrong AGAIN. The government left it up to the banks to report who they defrauded. You will only be considered for the IFR or this revised settlement IF the bank identify you as one of the borrowers they defrauded. This my dilemma. I have the court documented proof that U.S. Bank, N.A. foreclosed on my home during the period in question, and my case qualified for remediation under the IFR Framework for Lack Standing to Foreclose. But I was denied remediation because U. S. Bank, N. A.. did not identify my mortgage as one they serviced. If that was the case, why did they foreclosure on my home and attempt to put my family on the street? Now they are perpetrating the old bait and switch move: Since the bank could not take my home, now they deny they serviced my loan to get out of a government demanded settlement. They are truly clever, and the government never get the rules quite right which should be IF YOUR PROPERTY WAS FORECLOSED ON DURING THE PERIOD IN QUESTION BY ANY OF THE BANKS IN THE AGREEMENT, SEND US YOUR DOCUMENTS TO BE REVIEWED FOR REMEDIATION BASED ON THE FRAMEWORK. It’s just that easy to be fair. But the banks remain greedy, and know how to get what they want– a reduction in liability both monetarily and in number of homeowners that have a legitimate claim based on the fact it’s up to the bank to report borrowers they defrauded.

  4. Sharon Duncan says:

    What about all the people who had fraudulent foreclosures prior to 2009, and after 2010?

  5. BTW…The SOLE purpose of putting together as many REMIC’s as possible was to sell them in the secondary market. Countrywide was only one lender the assisted the BANKSTERS! The peanut made from a broker was a peanut shell compared to the fees “made” when these REMIC’s were sold! (Real Estate Mortgage Investment Conduit) What a scheme, what a crime! Why aren’t any of these FRAUDSTERS doing time! They SHOULD do time in the pen! IMHO. First REFUND THE MONEY AND VOID THE NOTES! Then lock them up!

  6. The market comparison approach is the ONLY method of appraising residential real estate. When the supply/demand scale was tipped in favor of sellers for almost a decade by defrauding the investors, ALL appraisals used were inflated by the fraud KNOWN by the BANKSTERS! Those 17 banks that FHFA has the pending litigation minimally should VOID EVERY NOTE. Will someone please tell me WHEN in the USA does a FRAUD CONTRACT become anything other than FRAUD? Has any accountants chimed in? There are 2 methods of accounting, cash & accrual. With the CASH method of accounting used by BANKS, when you have a monetary loss (as in the collapse of 2008) the loss was taken in 2008! So the “fraud” loans were written off as bad debt-in 2008! While the lenders continue to collect payments from borrowers, and modify the loans, and foreclose and evict, it is all a windfall profit for the banks, each and every one! Contractually the money was lent, based on inflated appraisals lead by the scheme devised by 17 lenders to defraud the “investors”. The notes for these loans should all be VOIDED and the money returned. That is the contractual correct legal ramifications of the FRAUD the banksters perpetuated! Collapsing the US economy was not enough, collapsing the World economy was not enough, a taxpayer bailout was not enough, they want windfall profits to continue for as long as possible, and don’t think they won’t commit FRAUD AGAIN to continue the scheme! Read the cases filed by FHFA, here is only 1 of the cases, please read the 9 CRIMINAL cause of actions: Please tell me again, when a contract begins as fraud, WHEN does it change into anything else? Why is the LOCAL governments allowing the banks to foreclose and evict based on FRAUD NOTES? I am sorry I do not understand how they are continuing to get away with this? FRAUD is FRAUD! Began as fraud, the notes are VOIDABLE, plain and simple! The payments made should be returned! WTF? Criminals running the show? Unbelievable!

  7. Steve says:

    Explain to me how American Home Mortgage Servicing Inc. manage to escape all this?

    • Mike says:

      American Home Mortgage Servicing escape all this by blaming Wells Fargo and LPS. They took the bitch route and ratted out on LPS/DOCX and Wells Fargo.

  8. DC says:

    Impeach Obama,chuck the senate,fire congress.

  9. tim says:

    And what about One West Bank…..George Soros Paulson Munching and mike sells piece of crap bank…..They are worse than all of them ! Obamas buddy Soros…..escapes it all….just Google ” one west bank complaints” or indymac bank complaints ( same bank )…….over a million hits in less than half second….WHAT ABOUT THEM OCC ?

    Bullshit politics leaves us hanging…..we didn’t sign up for these f crooks……we were sold to them by our gov…..thanks again……

  10. flanow says:

    I have strange feeling that they will be sending about $200 and no more to each borrower. Smells like bullshit to me!

    • Rodger says:

      Settlements to get relief to homeowners now…. What a crock of Shizzz.. The Banks dont have legal standing on any of these properties. They will write 200.00 checks to everyone and offer principle reductions. Thereby making the Banks LOOK like they are helping homeowners by writing off millions on these reductions….They and Bondi are going to flaunt these numbers as successes but the reality is its all smoke and mirrors.

  11. ROBERT l. TATGE says:

    JANUARY 25, 2012
    Robert L. Tatge, e-mail: 13100 Skyline Drive, P.O. Box 363 Spicer, MN. 56288 I’M DESPERATE AND IN NEED OF YOUR DIRECTION, TODAY I’M A PARTY OF FORECLOSURE, where Country-wide Home Loans caused the problem by “FORCE PLACEING INSURANCE“ ON MY MORTGAGE to graduate my payments to force Foreclosure. ALSO THE TRANSFER OF MY HOME LOAN MORTGAGE DOCUMENTS FROM “COUNTRY-WIDE HOME LOANS” TO REFINANCER, “FIFTH THIRD BANK”, THAT WERE TRANSFER, WERE SIGNED BY A “ROBO” SIGNER, LEAVING THE HOME OWNER, ROBERT L. TATGE, OF 13100 SKYLINE DRIVE, SPICER, MN 56288, IN LIMBO, TO THE FACT “FIFTH THIRD BANK” HAD NOT FOLLOW POLICY IN CHECKING, if the loan’s ownership history wasn’t recorded properly, so foreclosed homeowners might be able to fight even an eviction, BY THE PROPER AND LEGAL EMPLOYEE. It was not clear when or how “Country-wide Home Loans “transferred my mortgage, which occurred with a “ROBO” signer, then foreclosed on the home. I’m enclosing documents for your viewing. Please, understand I want to keep my home. It’s underwater and I’m retired now and still recovering from my Three Hernia Operation. You are my last HOPE!
    Sincerely Yours,

    Robert Lowell Tatge 320-796-2314

Leave a Reply