Foreclosure errors still common at big banks

TRD New York /
Dec.December 08, 2013 02:00 PM

 More than half a decade into the foreclosure crisis, the big banks still haven’t cleaned up their act, according to a new administrator’s report.

In the first half of 2013, three of America’s largest lenders continued to make errors when foreclosing on properties.

The severity of these errors ranged from inaccurately stating the amounts owed by homeowners in bankruptcy, to failing to respond expeditiously on potential short sales or loan modifications, according to the New York Post.

The ongoing errors came to light in a report released last week by Joseph Smith, the monitor of the $25 billion national mortgage settlement. The report found that Citi had a failure rate of 25 percent on short-sale document collection timeline compliance; Chase failed a pre-foreclosure initiation metric and loan modification timeline; and Bank of America failed three metrics, one of which regards the amount owed to bankrupt homeowners.

“It’s appalling,” Liz Ryan Murray, policy director of National People’s Action, told the New York Post. “The standards are common-sense customer-service issues, [like] don’t screw up the billing … and they can’t even get these right.” [NYP]Christopher Cameron


Related Articles

arrow_forward_ios
The threat of eviction hangs heavily above immigrant families who have lost work as a result of the coronavirus pandemic. (Getty)

Eviction bans don’t always protect the most vulnerable

Eviction bans don’t always protect the most vulnerable
Governor Andrew Cuomo and New York Chief Administrative Judge Lawrence Marks (Getty)

New York courts put the kibosh on foreclosures

New York courts put the kibosh on foreclosures
Toby Moskovits, Fortress managing director Spencer Garfield and the 215 Moore Street Site (Moskovits by Sasha Maslov)

Toby Moskovits’ Bushwick Generator thrown into receivership

Toby Moskovits’ Bushwick Generator thrown into receivership
The number of mortgages in forbearance continues to climb though servicers say they are fielding fewer calls for help from property owners.

TRD Insights: Mortgage forbearances keep climbing

TRD Insights: Mortgage forbearances keep climbing
Clockwise from top left: Poughkeepsie Galleria, Crossgates Mall, Destiny USA and Walden Galleria (Credit: Google Maps; I Love NY; Visit Buffalo)

After Palisades Center, 4 more Pyramid Group malls head to special servicing

After Palisades Center, 4 more Pyramid Group malls head to special servicing
SoFla prepares for flood of foreclosures and evictions after governor’s freeze

SoFla prepares for flood of foreclosures and evictions after governor’s freeze

SoFla prepares for flood of foreclosures and evictions after governor’s freeze
Governor Andrew Cuomo (Credit: Getty Images, iStock, and Pixabay)

Cuomo’s executive order tells banks to give homeowners a break

Cuomo’s executive order tells banks to give homeowners a break
Caught up in a dozen recent lawsuits, Brooklyn developer Toby Moskovits blames her firm’s debt troubles on “collusion” and a “personal vendetta” (Illustration by The Real Deal; Moskovits by Sasha Maslov)

Creditors are banging on Toby Moskovits’ door

Creditors are banging on Toby Moskovits’ door
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...