Foreclosure errors still common at big banks

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
From left: Starwood Capital’s Barry Sternlicht and Veracity Development’s Edmond Li along with 111 Mercer Street (Getty, Google Maps, Veracity Development)
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Salim Assa with 15 West 55th Street
Troubled Midtown rental saga headed for a foreclosure finale
Troubled Midtown rental saga headed for a foreclosure finale
Brooklyn District Attorney Eric Gonzalez charges disbarred lawyer with deed theft of 10 Pleasant Place in Ocean Hill, 1429 East 100th Street in Canarsie and 1100 Sutter Avenue in East New York.
Disbarred lawyer charged in deed theft scheme — again
Disbarred lawyer charged in deed theft scheme — again
Leslie J. Garfield’s Thomas Wexler with 163 East 64th Street (163 East 64th Street, Getty, Leslie Garfield)
Renaissance-inspired townhouse faces foreclosure
Renaissance-inspired townhouse faces foreclosure
Sugar Hill Capital’s David Schwartz with 121 West 116th Street (TerraCRG, Google Maps, Getty)
Uptown landlord Sugar Hill Capital faces another foreclosure
Uptown landlord Sugar Hill Capital faces another foreclosure
Sharif El-Gamal and 45 Park Place (Photo Illustration by Steven Dilakian for The Real Deal with Getty, Williams New York)
El-Gamal’s 45 Park lender wants out
El-Gamal’s 45 Park lender wants out
2022-in-review climate-change foreclosures builders-remedy
These were The Real Deal staff’s favorite stories of the year
These were The Real Deal staff’s favorite stories of the year
DW Partners' David Warren and 427 Marcy Avenue (DW Partners, Google Maps)
Ezra Unger faces foreclosure again on South Williamsburg condo project
Ezra Unger faces foreclosure again on South Williamsburg condo project
arrow_forward_ios

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

Loading...