Foreclosure Review
An interesting article just came out of the state of Connecticut. Apparently the state is encouraging residents who feel that they have been “wronged” by banks (read due to foreclosures) to apply for a “foreclosure review.” In reading the article the foreclosure review appears to be a grievance process that may allow some homeowners to collect damages from a laundry list of banks.
According to the bank, “The federal agencies (Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System) have ordered independent firms to evaluate whether individual borrowers suffered financial injury as a result of their loan servicer’s errors, misrepresentations, or other deficient foreclosure practices; and to determine the appropriate amount of financial remediation that the loan servicer must provide to individual borrowers.”
I will keep an eye out for any similar articles that are relevant to other states.
Residents encouraged to participate in foreclosure review
Easton Courier
Attorney General George Jepsen and state Banking Commissioner Howard F. Pitkin are encouraging Connecticut borrowers who believe they suffered financial injury because of harmful mortgage loan servicing and foreclosure practices to participate in an Independent Foreclosure Review and claims process.
“This presents an opportunity for Connecticut borrowers to receive some compensation for damages they suffered as a result of harmful practices by the loan servicing companies during foreclosure,” Mr. Jepsen said. “I would encourage them to take advantage of this program.”
Mr. Pitkin added, “This is an important program and I encourage anyone who was involved in the foreclosure process and is eligible to participate in this review.”
Eligibility
To be eligible for review and financial remediation, borrowers must have had a mortgage in the foreclosure process between Jan. 1, 2009, and Dec. 31, 2010. In addition, the property securing the loan must have been the borrower’s primary residence, and the loan must have been serviced by one of the following loan servicers:
America’s Servicing Company
Aurora Loan Services
Bank of America
Beneficial
Chase
Citibank
CitiFinancial
CitiMortgage
Countrywide
EMC
Everbank/Everhome
GMAC Mortgage
HFC
HSBC
IndyMac Mortgage Services
Metlife Bank
National City
PNC
Sovereign Bank
SunTrust Mortgage
U.S. Bank
Wachovia
Washington Mutual
Wells Fargo
The Independent Foreclosure Review and claims process was ordered by the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System — the federal agencies with responsibility and authority to regulate and supervise the loan servicers.
The federal agencies have ordered independent firms to evaluate whether individual borrowers suffered financial injury as a result of their loan servicer’s errors, misrepresentations, or other deficient foreclosure practices; and to determine the appropriate amount of financial remediation that the loan servicer must provide to individual borrowers.
Many Connecticut borrowers have already received letters from the independent firms approved by the federal regulators. Those and other eligible borrowers are advised to complete the forms and mail them to the address provided by the April 30, 2012, deadline. Borrowers who have questions regarding the Independent Foreclosure Review and claims process should call the program administrator at 888-952-9105 or visit independentforeclosurereview.com.
Connecticut homeowners experiencing difficulty making their mortgage loan payments currently should contact the state Department of Banking’s Foreclosure Assistance Hotline (877-472-8313). The department assists homeowners who are attempting to achieve loan modifications and prevent foreclosure.