June 21, 2012
OCC Releases Status Report on Actions to Correct Deficient Foreclosure Processes
WASHINGTON — The Office of the Comptroller of the Currency today released its second interim report on the status of the Independent Foreclosure Review and actions required by consent orders issued in April 2011 to correct deficient mortgage servicing and foreclosure processes.
The orders required the nation’s largest mortgage servicers to retain independent consultants to conduct a comprehensive review of their foreclosure activity in 2009 and 2010, to identify financial injury caused by deficient foreclosure practices, and to provide financial remediation for that injury. That review includes a process for borrowers to request a free review of their loan files as well as a process where the consultants select samples of files from the servicers’ portfolios. Through these complementary processes, 338,447 files are currently slated for review. That number includes 193,630 people who have requested a free review and 144,817 files selected by the consultants from servicers’ portfolios through May 31, 2012.
In addition to the review of foreclosure activity, the orders required extensive changes in the servicers' mortgage servicing and foreclosure processes to correct unsafe and unsound practices documented in the consent orders. Servicers continue to work to implement detailed action plans describing activities to correct deficiencies in mortgage servicing activities, oversight and management of third-party service providers, management information systems, risk assessment and management, and compliance oversight.
Through May 24, 2012, the servicers reported completing 93 percent of the corrective actions required by the consent orders. While the work completed to date represents a significant amount of progress, much work remains to be done to complete the implementation of the remaining items, validate and test these actions, and ensure sustainability of the corrective actions.
This report updates the previous interim report published in November 2011. More information about the Independent Foreclosure Review is available at http://www.independentforeclosurereview.com.