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
Federal Reserve chairman Jerome Powell (Getty; iStock)

Mortgage originations at 2nd highest level in 20 years: Fed

Mortgage originations at 2nd highest level in 20 years: Fed
381 Broadway (Google Maps)

Two-year foreclosure battle in Tribeca culminates in bankruptcy filing

Two-year foreclosure battle in Tribeca culminates in bankruptcy filing
(iStock)

Foreclosure filings picked up in October up despite moratoriums

Foreclosure filings picked up in October up despite moratoriums
New foreclosure filings are rising again as limits are lifted (iStock)

Foreclosure filings ramp up, especially in minority neighborhoods

Foreclosure filings ramp up, especially in minority neighborhoods
Paul Manafort and Manhattan district attorney Cyrus Vance, Jr. (Getty)

Manafort mortgage-fraud case dismissed, again

Manafort mortgage-fraud case dismissed, again
(Getty, iStock)

Hudson’s Bay, Simon Property Group hit with $846M foreclosure lawsuit

Hudson’s Bay, Simon Property Group hit with $846M foreclosure lawsuit
Citizens Bank CEO Bruce Van Saun and SL Green CEO Marc Holliday with 106 Spring Street (Getty; Sl Green; Google Maps)

One of Soho’s priciest retail spaces heads to foreclosure

One of Soho’s priciest retail spaces heads to foreclosure
Senator Mitch McConnell and House Speaker Nancy Pelosi (Getty)

$2.2T House stimulus package would ban evictions for 12 months

$2.2T House stimulus package would ban evictions for 12 months
arrow_forward_ios

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

Loading...