Reviewing of Foreclosures Will Take Much Longer than Previously Estimated
Photo by Wiertz Sébastien
Review of foreclosure cases as ordered by the regulators in 2011 will take many months longer than previously estimated according to documents submitted with the banking regulators of the feds. These delays will also cause postponement of compensation for those house owners who have been harmed by wrong foreclosure operations.
The reviews are covering the foreclosure activities undertaken during 2009 and also 2010 by 14 of America’s biggest servicers; the latter deals with nearly 65% of all the mortgages of the country. As per orders given last April by federal regulators these entities were expected to review the cases covering the above mentioned time period.
The reviews were to be done by independent agencies. The deadline for them was to complete the work by this January. These reviewing agencies were engaged by the servicers themselves.
It now seems that review of the foreclosure cases of Bank of America cannot be completed until next November as per a note that the consultant of BofA submitted with the Office of the Comptroller of the Currency. Bank of America is the biggest mortgage servicer in the country. Its consultant is Promontory Financial Group.
The consulting agency of JPMorgan Chase is Deloitte & Touche. The latter also hinted that it may require more or less the same time as per the letter it has submitted. For other servicers it is the same picture – the time schedule for review has been extended.
Last April the details, the scope and complexities of the cases were not fully gauged said Bryan Hubbard, spokesperson of OCC. Hubbard reiterated that the important point is to see that the reviews are fair and absolutely thorough rather than speedy. He said, “We need to make sure this is done right”.
Some of the hired agencies may complete earlier than the others. Some may even complete ahead of the time limit they have chalked out in their letters while others could take up even more time, commented Hubbard.
The OCC added that the house owners should be compensated even before completion of the reviews. There are 4 million cases qualified for these reviews. The consultants will not comb through all but sample some to find out the errors pertaining to illegal foreclosures and charging of unjust exorbitant fees.
Those house owners who were subjected to foreclosure on their primary homes by any one of these 14 servicers during 2009 and 2010 would be qualified for reviews. OCC informed that any person asking for a review by 30th April would be considered.
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Reviewing of Foreclosures Will Take Much Longer than Previously Estimated
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