Borrowers seeking review of their foreclosures under the federal banking agencies' independent probe now have until July 31 to submit their requests.
The Office of the Comptroller of the Currency and the Federal Reserve extended the deadline from April 30 to "provide more time to increase awareness of how eligible people may request a review through the Independent Foreclosure Review process and to encourage the broadest participation possible."
The new deadline provides time for borrowers who feel they suffered financial harm as a result of foreclosure malpractice on their properties in 2009 or 2010 by one of the servicers covered by enforcement actions issued in April.
The reviews are a requirement under consent orders signed between regulators and 14 large servicers, including Bank of America ($13.44 -0.07%), JPMorgan Chase ($53.02 0%), Wells Fargo ($40.68 0%) and Citigroup ($51.66 0%).
The orders mandate servicers must retain independent consultants to conduct a comprehensive review of foreclosure activity in 2009 and 2010 to identify borrowers who may have been hurt financially due to improper foreclosure actions.
The reviews could cover more than 4 million cases and take more than a year to complete. If the review uncovers improprieties, borrowers may receive compensation or another remedy.
Borrowers are eligible for a review if they meet the following criteria: their loan was serviced by one of the participating mortgage servicers; their loan was active in the foreclosure process between Jan. 1, 2009 and Dec. 31, 2010; and the property securing the loan was the borrower's primary residence.
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