Fed penalizes 10 banks on mortgage practices
By Steve Goldstein
WASHINGTON (MarketWatch) -- The Federal Reserve said it's taken enforcement action against 10 banks over "a pattern of misconduct and negligence related to deficient practices in residential mortgage loan servicing and foreclosure processing. These deficiencies represent significant and pervasive compliance failures and unsafe and unsound practices at these institutions."
The banks are Bank of America /quotes/comstock/13*!bac/quotes/nls/bac (BAC 13.28, -0.19, -1.39%) , Citigroup /quotes/comstock/13*!c/quotes/nls/c (C 4.49, -0.06, -1.32%) , Ally Financial, the HSBC North America unit of HSBC Holdings /quotes/comstock/13*!hbc/quotes/nls/hbc (HBC 53.65, +0.16, +0.30%) , J.P. Morgan Chase /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 46.29, -0.35, -0.75%) , MetLife /quotes/comstock/13*!met/quotes/nls/met (MET 44.21, -0.56, -1.25%) , PNC Financial Services /quotes/comstock/13*!pnc/quotes/nls/pnc (PNC 62.66, -0.47, -0.74%) , SunTrust Banks /quotes/comstock/13*!sti/quotes/nls/sti (STI 29.17, -0.43, -1.45%) , U.S. Bancorp /quotes/comstock/13*!usb/quotes/nls/usb (USB 26.00, -0.36, -1.37%) and Wells Fargo /quotes/comstock/13*!wfc/quotes/nls/wfc (WFC 30.89, -0.51, -1.62%) .
In addition to the actions against the banking organizations, the Federal Reserve on Wednesday announced formal enforcement actions against Lender Processing Services, Inc. (LPS), a domestic provider of default-management services and other services related to foreclosures, and against MERSCORP, Inc., which provides services related to tracking and registering residential mortgage ownership and servicing, acts as mortgagee of record on behalf of lenders and servicers, and initiates foreclosure actions.
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