Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement


Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement

Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement

Joint Release Board of Governors of the Federal Reserve System
Office of the Comptroller of the Currency



For immediate release
February 28, 2013

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:

Amendments to the Consent Orders issued by the OCC
Aurora Bank FSB (PDF)
Bank of America, N.A. (PDF)
Citibank, N.A. (PDF)
JP Morgan Chase Bank, N.A. (PDF)
MetLife Bank, N.A. (PDF)
PNC Bank, N.A. (PDF)
Sovereign Bank, National Association (PDF)
U.S. Bank National Association and U.S. Bank National Association ND (PDF)
Wells Fargo Bank, N.A. (PDF)

Amendments to the Consent Orders issued by the Federal Reserve
Bank of America Corporation (PDF)
Citigroup Inc., and Citifinancial Credit Company (PDF)
The Goldman Sachs Group, Inc., and Goldman Sachs Bank U.S.A. (PDF)
HSBC North America Holdings, Inc., and HSBC Finance Corporation (PDF)
JPMorgan Chase & Co. and EMC Mortgage Corporation (PDF)
Morgan Stanley (PDF)
The PNC Financial Services Group, Inc. (PDF)
SunTrust Banks, Inc., SunTrust Bank, and SunTrust Mortgage, Inc. (PDF)
U.S. Bancorp (PDF)
Wells Fargo & Company (PDF)

Media Contacts:
Federal Reserve Board Barbara Hagenbaugh 202-452-2955
OCC Bryan Hubbard   202-649-6870



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3 Responses to “Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement”

  1. Sarah says:

    Fail OCC. A dystopian symbol of state power aligned against the interests of the governed. A lurching paper mill that mechanically publishes official pulp, thus fullfilling their obligations to antisocial, rent seeking power.

  2. Looks to me the government just made sure any funds given to us are not amission of guilt.

  3. This appears to undo the breach of the banksters for breaching the independent reviews. The reviews were not independent and were done by a company that atemtps to prove the big corporations did not commit fraud, by suppression of evidence. Using Soloman Edwards whom appears to admit they are in the business of scrubbing documents and forgery of documents from notes to allonges to assignments, then each of these employees were overlooked by bank employees. A total set up and breaching their settlement agreement. Looks like this amendment possible releases the banks from the breach. Another back skratching of the banks.


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