Recent Developments in the Robo-Signing Scandal and Iowa Mortgage Foreclosure Proceedings

Just last month, the government announced a "pattern of misconduct and negligence" in the robo-signing scandal. After a review by the Federal Reserve and the Office of Thrift Supervision (OTS), violations of laws and foreclosure processes were found by 14 banks that did not focus on accuracy and quality.

The Federal Reserve announced enforcement sanctions against 10 banking organizations regarding the robo-signing scandal, and is requesting that these mortgage servicing companies and banks correct these unsound practices. The OTS took action against four other mortgage loan servicers, and is asking them to correct their weaknesses in processing home foreclosures.

The 14 banks are nationwide mortgage servicers and are being asked to quickly make corrections to their foreclosure policies and procedures.

The 10 banks the Federal Reserve has taken action against include:

• Bank of America
• Citigroup
• Wells Fargo
• JP Morgan Chase & Co.
• Ally Financial - previously known as GMAC Mortgage
• U.S. Bancorp
• PNC Financial
• Met Life
• Sun Trust Banks
• HSBC

 

The four mortgage loan servicers that the OTS is enforcing actions against include:

• One West Bank
• Aurora Bank
• Sovereign Bank
• Ever Bank

Although there are no fines imposed on these banks and servicers at this time, there may be financial restitution imposed at a later date. These banks and servicers are required to hire an independent firm to conduct a thorough review of foreclosures or pending foreclosures between 2009 and 2010.

These reviews may indicate certain borrowers - even homeowners in Iowa - who may have been victims of foreclosure errors.

If you believe you have been financially harmed by a lender, bank or servicer who committed wrongful actions and foreclosure errors, contact an Iowa financial fraud attorney for legal help. Call the law office of Brady & O'Shea today at (319) 866-9277 for your free legal consultation.