The Real Deal New York

Posts Tagged ‘comptroller of the currency’

  • Millions of current and former homeowners nationwide may have their foreclosure cases re-examined as part of a review being planned by federal regulators and slated to be announced in the next few weeks, the Wall Street Journal reported. The review is to determine whether homeowners were victim of mistakes by the banks.

    The process will be open to borrowers who were in some stage of foreclosure in 2009 or 2010, the Journal said, meaning that approximately 4.5 million borrowers could be eligible.

    John Walsh, acting head of the Office of the Comptroller of the Currency, said the agency was exploring “the best means of ensuring that injured homeowners had the opportunity to seek relief,” when they were harmed by lender improprieties. … [more]

  • Bank of America, JPMorgan Chase, Wells Fargo and Citigroup, and some of the nation’s other largest banks, have submitted plans to rectify mortgage servicing operations and halt progress over several months to settle accusations of abuse related to mortgage servicing. Those plans will remain confidential, according to the Office of the Comptroller of the Currency, despite calls from some on Capitol Hill to publish the information, the Wall Street Journal reported.

    Each bank was required to hire an independent consultant to review all foreclosure proceedings from 2009 and 2010 to evaluate whether they improperly foreclosed on any homeowners. … [more]

  • Commercial real estate losses are the biggest worry for the country’s banks this year, though the damage is expected to be concentrated amongst smaller lenders, according to a review by U.S. bank examiners. “Hundreds of banks will fail or will be resolved over the course of the cycle,” said Eugene Ludwig, former Comptroller of the Currency and Chairman of financial consulting firm Promontory Financial Group. While the financial system is unlikely to collapse under the weight of commercial real estate debt, loan defaults on malls, hotels and multi-family housing will slow the recovery process, analysts said, because the smaller lenders who made the bulk of these loans will be forced to tighten credit in order to absorb losses. Federal Reserve Chairman Ben Bernanke has said tight credit is a “formidable headwind” on the road to recovery. The Fed plans to complete its purchase of $1.43 trillion in mortgage-backed securities and residential mortgage debt by the end of March, though some analysts cautioned against an end to that program, especially if mortgage interest rates rise above 6 percent. [Bloomberg via Businessweek]

  • The commercial real estate sector has been identified as the weakest part of the economy, according to the Fed’s Beige Book business survey. The survey shows signs of weakness in the national banking and employment sectors as well. “The Beige Book was more pessimistic than what I expected,” said John Silvia, chief economist at Wells Fargo Securities in Charlotte, N.C. The report indicates that commercial real estate loan defaults totaled $110 billion and may rise to $170 billion by the fourth quarter of 2010. “Declining real estate values caused by rising vacancies, falling rental rates and weak sales are contributing to losses,” John Dugan, Comptroller of the Currency, told Congress Oct. 14. However, the problem of rising commercial real estate loan defaults are a manageable problem for the U.S. banking industry and will not require a government solution, said Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, Va. [Bloomberg]