The Office of the Comptroller of the Currency (OCC) has imposed restrictions on the mortgage-servicing operations of six banks for failing to meet all of the regulatory requirements.
The banks, namely JPMorgan Chase, US Bancorp, Wells Fargo and the US banking units of EverBank Financial, HSBC Holdings, Banco Santander, have failed to fully comply with the Independent Foreclosure Review (IFR) Payment Agreement, issued in 2011 related to foreclosure-processing mistakes, the US banking regulator said.
The restrictions will include limitations on acquisitions of residential mortgage servicing rights, outsourcing or sub-servicing of new residential mortgage servicing activities to other parties, off-shoring new residential mortgage servicing activities and new appointments of senior officers responsible for residential mortgage related services.
Morris Morgan, the OCC’s deputy comptroller for large banks told the Wall Street Journal that the regulator expects lenders to meet requirements in "months, not years" and that the office was "not satisfied with where [lenders] are at this at this point in time."
However, the regulator terminated orders against Bank of America, Citibank and PNC Bank as the institutions have successfully met all the requirements prescribed in the orders.
The IFR Payment Agreement has enabled distribution of more than $2.7bn to over 3.2 million eligible borrowers from OCC-supervised institutions.