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.
Lenders may be in for a world of pain, some experts said, depending on the outcome of the reviews.
“It’s a substantial undertaking at great expense to the banks,” said Tim Rood, a partner at Collingwood Group, a housing finance consulting firm. [WSJ]