Connecticut AG George Jepsen and state Banking Commissioner Howard Pitkin urged eligible borrowers to apply for the look-back foreclosure reviews at the largest mortgage servicers.
The Office of the Comptroller of the Currency and the Federal Reserve required third-party consultants to review nearly 4.5 million foreclosure files at 14 major servicers, including Bank of America (BAC), Wells Fargo (WFC), and JPMorgan Chase (JPM).
Connecticut AG George Jepsen and state Banking Commissioner Howard Pitkin urged eligible borrowers to apply for the look-back foreclosure reviews at the largest mortgage servicers.
The Office of the Comptroller of the Currency and the Federal Reserve required third-party consultants to review nearly 4.5 million foreclosure files at 14 major servicers, including Bank of America (BAC), Wells Fargo (WFC), and JPMorgan Chase (JPM).
The reviews will cover foreclosures completed between Jan. 1, 2009, and Dec. 31, 2010, to determine which borrowers were directly affected by the problems that arose last year, such as fraudulent signatures and filings in the middle of modifications.
Borrowers have until April 30 to request a review of their file. Both Jepsen and Pitkin are working to urge as many borrowers as possible to participate. In 2010, more than 21,700 homes in Connecticut were lost to foreclosure, 10% more than the year before, according to RealtyTrac data.
“This presents an opportunity for Connecticut borrowers to receive some compensation for damages they suffered as a result of harmful practices by the loan servicing companies during foreclosure,” Jepsen said in a statement Monday.
“This is an important program and I encourage anyone who was involved in the foreclosure process and is eligible to participate in this review,” Pitkin said.
Jepsen serves on the multistate negotiation panel to strike a settlement over the similar allegations.
The banks are taking actions to correct the problems and install new procedures, but it’s clear they want to settle all of the problems en masse. After the Massachusetts AG Martha Coakley brought her own lawsuit last week, the first from the robo-signing scandal, Ally Financial (GJM) responded by ceasing nearly all of its mortgage lending in the state.
Write to Jon Prior.
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