Banks not improving at foreclosure practices, settlement monitor says

TRD New York /
Jun.June 19, 2013 11:00 AM

A court-appointed monitor said CitiGroup, Bank of America and other big mortgage servicers in the U.S. have not improved how they treat customers approaching foreclosure, Bloomberg News reported.

The banks’ shortcomings pertain to how they handle requests for loan modifications and collect customer records, the monitor, Joseph Smith Jr., said in a report released today. He is empowered to take the banks back to court for additional sanctions if they continually fail in the same area after an improvement plan is implemented, Bloomberg News said.

As a result of a 2012 five-bank settlement that also involved Wells Fargo, Ally Financial and JPMorgan Chase, the banks were ordered to follow new servicing rules. The servicers were also required to provide $25 billion to consumers in the form of loan forgiveness or short sales, as previously reported.

Some attorneys general have spoken out against banks’ post-settlement practices as well. New York AG Eric Schneiderman, who is suing HSBC Holdings Plc for allegedly breaking foreclosure law, said he planned to sue Bank of America and Wells Fargo for violating settlement terms related to processing applications for loan modifications.

Earlier this month, Florida Attorney General Pam Bondi claimed Bank of America was responsible for “possible failure to comply fully” with settlement terms, as previously reported. [Bloomberg]Mark Maurer


Related Articles

Maefield Development's Mark Siffin and 20 Times Square (Credit: Maefield)

Lender forecloses on Maefield’s billion-dollar Times Square project

Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

Home foreclosures dropped nearly 20% in Q3, report shows

Home foreclosures dropped nearly 20% in Q3, report shows

Manhattan’s 10019 zip code, which covers Midtown, Times Square, Herald Square and Midtown South, saw the most foreclosures in the borough with eight. (Credit: iStock)

Manhattan foreclosures soar 118%, driven by mortgage defaults

15 East 63rd Street and Oleg Cassini (Credit: Google Maps and Getty Images)

Oleg Cassini’s former UES headquarters faces foreclosure

Mayor Bill de Blasio and Frank Carone (Credit: Getty Images)

City tapped De Blasio donor to take over foreclosed properties

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Lenders in glass houses? Judge rules Maverick can’t foreclose on Chelsea property because it violated loan agreement

Foreclosure starts are up in 17 states and a number of major cities. (Credit: iStock)

Nationwide foreclosure rates continue to drop, but problem areas remain