Blog Enforcement Watch September 09, 2021

OCC Issues $250 Million Penalty Related to Bank’s Loss Mitigation Practices

On September 9, the Office of the Comptroller of the Currency (OCC) announced that it issued a $250 million civil money penalty against a national bank for alleged deficiencies in the bank’s home lending loss mitigation program, and for purportedly failing to meet its obligations under a 2018 consent order that the bank entered with the OCC and the Consumer Financial Protection Bureau (CFPB).

As reported by Enforcement Watch, the bank previously entered a consent order in 2018 with the CFPB and the OCC based on purported deficiencies in the bank’s enterprise-wide compliance risk management program, which the agencies found to be in violation of Section 5 of the Federal Trade Commission (FTC) Act.

The current penalty and related cease and desist order address similar conduct related to the bank’s purported failure to establish an effective home lending loss mitigation program. Under the terms of the cease and desist order, the bank must pay a $250 million fine and is limited in future loss mitigation and servicing-related activities until it address specific issues in mortgage servicing.

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