OCC orders bank foreclosure reviews
Thursday 30 June 2011 - by Andrew Hickley
US banks that have not yet reviewed their foreclosure practices are set to be compelled to do so by the Office of the Comptroller of the Currency.
The guidance bulletin makes a number of provisions, including that banks suspend foreclosure proceedings when work is underway to modify the mortgage.
All documents supporting lawful foreclosure actions must also be properly endorsed and maintained, it said.
"While the reviews at the 14 large mortgage servicers and subsequent supervisory responses address a large segment of the mortgage servicing market, the OCC wants to ensure that all mortgage servicers under its supervision adhere to appropriate foreclosure management standards," the statement reads.
"Thus, national banks engaged in mortgage servicing, whether for their own book or others, must ensure compliance with foreclosure laws, conduct foreclosure processing in a safe and sound manner, and establish responsible business practices that provide accountability and appropriate treatment of borrowers in the foreclosure process."
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