See Full Article in Florida Today
Reviews of hundreds of thousands of foreclosure cases ordered by regulators last year will take months longer to complete than first expected, according to documents filed with federal banking regulators.
The delays could postpone compensation for some homeowners harmed by improper foreclosure actions.
The reviews cover foreclosure actions in 2009 and 2010 by the nation’s 14 largest mortgage servicers, which handle payments for about 65 percent of U.S. mortgages. They are required by enforcement orders announced by federal regulators last April.
Under the deadlines set in April, the reviews — which are being done by independent consultants hired by servicers — should have been completed this month. But reviews of Bank of America’s foreclosure cases could take until November, a letter that BofA’s consultant filed with the Office of the Comptroller of the Currency indicates.
BofA is the nation’s largest mortgage servicer, and the Promontory Financial Group is its consultant. JPMorgan Chase’s consultant, Deloitte & Touche, indicated it may need about the same amount of time, according to its letter. Review time frames have lengthened for other servicers, too, because the detail, scope and complexity of the reviews weren’t fully known last April, says OCC spokesman Bryan Hubbard.
I’’s more important that the reviews be fair and thorough than quick, he says.
“We need to make sure this is done right,” he says. Some companies may finish before others. Some may beat the timelines in their letters. Some deadlines may get longer, Hubbard says. The OCC says servicers should not wait until all reviews are done to compensate homeowners. While 4 million cases are eligible for reviews, consultants will sample only some for errors such as unlawful foreclosures and excessive fees. Borrowers who faced a foreclosure action on their primary home by one of the 14 servicers in 2009 or 2010 are eligible for reviews. Anyone eligible who asks for a review by the April 30 deadline will get one, the OCC says. More information, and names of participating servicers, is available at 888-952-9105.
