Foreclosure practices at eight more financial firms catch Fed’s wrath
Having punished the five largest mortgage servicers for their foreclosure practices to the tune of a $25 billion settlement, federal regulators are now setting their sights on the next tier of financial firms, whose methods are increasingly coming under fire.
According to the New York Times, the Federal Reserve has recommended fines for eight more firms: HSBC’s U.S. division, SunTrust Bank, MetLife, U.S. Bancorp, PNC Financial Services, EverBank, OneWest and Goldman Sachs.
The Fed’s suggestion comes after a two-year investigation into the foreclosure practices of the institutions. Many of them were found to be robo-signing foreclosures, or submitting improper or inaccurate documentation — even after their larger counterparts caught fire for the same practices. The Times said the Fed may want these firms to agree to the same terms Ally Financia, Bank of America, JPMorgan Chase, Citigroup and Wells Fargo agreed to in their landmark settlement.
New York State Supreme Court judge Arthur Schack has previously sclammed U.S. Bancorp in foreclosure procedings, throwing out several cases where a bank employee identified herself in conflicting ways. [NYT]