Mortgage Loan Servicing Enforcement Plans, Agreements Released

This story appeared in Bank Digest.

The Fed has released action plans for two financial institutions to correct deficiencies in residential mortgage loan servicing and foreclosure processing. It also released the engagement letter between a third company and the independent consultant it retained to review foreclosures that were in process in 2009 and 2010, as well as a supplemental agreement addressing that company's foreclosure review obligations following the decision by the company's mortgage servicing subsidiaries to seek bankruptcy protection. According to the Fed, the action plans are required under the terms of last year's formal enforcement actions, which require Fed-regulated mortgage loan servicers and parent holding companies of mortgage servicers to submit acceptable plans to improve their procedures, controls and oversight of foreclosure activities.