FRB and OCC: Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement

The OCC and the Federal Reserve Board released amendments to their enforcement actions against 13 mortgage servicers for deficient practices in mortgage loan servicing and foreclosure processing. These amendments require the servicers to provide $9.3 billion in payments and other assistance to borrowers, and memorialize agreements in principle announced in January with Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.

The amount includes $3.6 billion in cash payments, as well as $5.7 billion in other borrower-assistance such as loan modifications and forgiveness of deficiency judgments.

In providing the $5.7 billion in assistance, the 13 servicers are expected to undertake well-structured loss mitigation efforts focused on foreclosure prevention, with preference given to activities designed to keep borrowers in their homes through "affordable, sustainable, and meaningful home preservation actions."

These amendments replace the requirements related to the Independent Foreclosure Review for the 13 servicers listed.

Federal Reserve amendments issued: Bank of America Corporation; Citigroup Inc., and Citifinancial Credit Company; The Goldman Sachs Group, Inc., and Goldman Sachs Bank U.S.A.; HSBC North America Holdings, Inc., and HSBC Finance Corporation; JPMorgan Chase Co. and EMC Mortgage Corporation; Morgan Stanley; The PNC Financial Services Group, Inc.; SunTrust Banks, Inc., SunTrust Bank, and SunTrust Mortgage, Inc.; U.S. Bancorp; Wells Fargo Company.OCC amendments issued: Aurora Bank, FSB; Bank of America; Citibank; HSBC Bank; JPMorgan Chase Bank, N.A.; MetLife Bank, N.A.; PNC Bank, N.A.; Sovereign Bank; U.S. Bank National Association, U.S. Bank National Association ND; Wells Fargo Bank, N.A..See also: FAQs About the Independent Foreclosure Review Agreements.