Alert March 06, 2012

FRB Releases Action Plans Addressing Residential Mortgage Servicing and Foreclosure Issues

The FRB released action plans for supervised financial institutions to address issues in residential loan servicing and foreclosure processing, in accordance with formal enforcement actions issued last year.  The action plans require nine mortgage loan servicers regulated by the FRB, and the servicers’ parent holding companies, to implement plans that strengthen communications with borrowers, improve oversight of servicing and foreclosure processing conducted by bank and nonbank subsidiaries, and provide remediation for borrowers who suffered financial injuries. Click here for the FRB’s release and here for the action plans.