There’s still no deal by the banks to settle claims against them for improper paperwork processing on mortgage foreclosures. There is a way now for those who believe they were wrongfully foreclosed on to state their case.
All the biggest banks are charged in this matter and are expected to eventually pay out $20 billion, rocking their stability and likely reducing their ability to lend.
The WSJ says: Bank regulators and the mortgage industry have launched a complaint process to reach out to more than 4 million homeowners to find and compensate any who were harmed by deficiencies in banks’ foreclosure operations.
Bank regulators in April ordered 14 large mortgage servicing firms to fix problems in their foreclosure-handling processes. The Office of the Comptroller of the Currency and Federal Reserve required these companies to hire independent consultants to fix those problems. The industry has now started sending letters to around 4.5 million borrowers who were in some stage of foreclosure in 2009 or 2010.
Consumers who want to have their foreclosure cases reviewed must submit their information by April 30, though it remained unclear how much they will be compensated, or whether they would be required to waive their right to sue their mortgage company to receive compensation.