Foreclosure Complaint? Stand By for New Toll-Free Number
It probably won’t include “1-800-ROBO,” but big banks are preparing to launch a toll-free number to find consumers harmed by problems in foreclosure processing.
The effort to find consumers is an outgrowth of the controversy over so-called robo-signing and other problematic foreclosure practices. Last spring, regulators ordered major banks and thrifts to overhaul their foreclosure practices, finding that 14 lenders filed foreclosures with improper documentation and lacked sufficient staff to properly handle distressed borrowers. The banks have now picked independent consultants to identify any borrowers who were harmed by foreclosure-processing problems.
The regulators have decided to require that banks set up a single process for consumers who want a review of their case, rather than a separate one for each mortgage company. Homeowners can request a review if their foreclosure happened on a primary residence in 2009 or 2010. The outreach campaign will also include a joint website and an advertising campaign. It’s expected to be launched in the coming weeks, Acting Comptroller of the Currency John Walsh said Monday at a conference in Washington held by the American Banker newspaper.
Can’t wait to see how this isn’t going to work…