Sunday, November 6, 2011

Another Federal F'closure Relief Program Goes Into Effect; Will Purportedly Give Some Borrowers Chance To Have Cases Reviewed For Bankster Wrongdoing

The Washington Post reports:

  • More than 4 million borrowers who have faced foreclosure since early 2009 will have the chance to have their cases reviewed for potential wrongdoing, federal regulators and some of the nation’s largest mortgage servicers announced Tuesday.

  • The reviews stem from a deal forged earlier this year in which 14 servicers agreed to hire independent consultants to evaluate whether borrowers suffered financial injury during the foreclosure process. If a review finds errors or abuses by the financial firms, the consultants will determine what recompense wronged homeowners deserve.

  • On Tuesday, servicers began mailing letters to the estimated 4 million borrowers whose loans were in the process of foreclosure between Jan. 1, 2009, and Dec. 31, 2010, detailing how to request a review of an individual case.

  • Officials at the Office of the Comptroller of the Currency, which crafted the April servicer agreement along with the Federal Reserve, said the mailings would continue through the end of the year and be accompanied by a large-scale marketing campaign to make borrowers aware of the effort. Additional information is available at or 1-888-952-9105. Requests for review must be received by April 30, 2012.

  • There is no cost to the borrower for this review,” Joe Evers, deputy comptroller for large banks at the OCC, said in a call with reporters Tuesday.

For more, see 4 million borrowers eligible for foreclosure review.

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