No doubt, the mortgage industry has been in turmoil for the past several years. The numbers of foreclosures have finally peaked, but in response to the many fiascos and scandals over the last couple of years, the Feds recently issued requirements for lenders. These requirements detail the steps that must be taken by well-known mortgage lenders, including Bank of America, Citibank, JPMorgan Chase and Wells Fargo to improve communication, oversight and more related to foreclosures.
According to Ilyce Glink, real estate expert at the
Equifax Personal Finance Blog, the requirements were issued by the Office of the Comptroller of the Currency or OCC. Her recent article, “
Foreclosure Guidelines: OCC Takes Action,” talks about how the OCC is mandating that the banks improve their communication – both formal and informal – to make sure borrowers understand what’s gong on and that they receive the information they need when they need it.
Furthermore, lenders may no longer “dual-track.” That is, if a borrower goes into a loan modification program, the lender cannot continue to pursue foreclosure.
How will we know the banks are doing what they’re supposed to be doing? They must hire independent auditing firms to review their foreclosures from the problem timeframe – January 1, 2009, through December 31, 2010.
If you were among those who lost a home in an unfair foreclosure process, you’ll want to look at Glink’s article at the
Equifax Personal Finance Blog. OCC has set up a restitution process and you can appeal. Check out the full information now and pass it along to those who have recently been affected by foreclosure.