OCC extends deadline for foreclosure consent order action plans
The Office of the Comptroller of the Currency extended the timeline for submission of plans and foreclosure review engagement letters required in the April 13 consent orders against eight mortgage servicers. The deadline was extended at the request of the Department of Justice to allow coordination of actions with other agencies at the state and federal level. Deadlines were extended by 30 days for the following firms: Bank of America (BAC), Citibank (C), HSBC (HBC), JPMorgan Chase (JPM), MetLife Bank (MET), PNC (PNC), U.S. Bancorp (USB), and Wells Fargo (WFC). In April, the OCC announced formal enforcement actions against the servicers along with two third-party service providers for unsound practices related to residential mortgage loan servicing and foreclosure processing. The two service providers that were part of the enforcement action are Lender Processing Services (LPS) and its subsidiaries DocX and LPS Default Solutions; and Merscorp Inc. and its wholly owned subsidiary, Mortgage Electronic Registration Systems. The enforcement actions require the servicers to promptly correct deficiencies in residential mortgage loan servicing and foreclosure practices that examiners identified in reviews conducted during the fourth quarter. Among other things, the enforcement actions require the servicers to ensure that foreclosures are not pursued once a mortgage has been approved for modification and to establish a single point of contact for borrowers throughout the loan modification and foreclosure processes. Write to Kerry Curry. Follow her on Twitter @communicatorKLC.