U.S. Restricts Six Banks Over Mortgage Problems

Failure to comply with enforcement orders draws OCC fire

June 17, 2015 11:06 a.m. ET via The Wall Street JournalSTORY LINK: click here

BY VICTORIA MCGRANE

WASHINGTON—The Office Comptroller of the Currency imposed restrictions on the mortgage-servicing operations of six banks, including the national bank arms of J.P. Morgan Chase & Co. and Wells Fargo & Co., for failing to fully comply with enforcement orders related to home foreclosure abuses.

The OCC said on Wednesday the six banks had not met all the requirements of consent orders issued in 2011 related to foreclosure-processing mistakes. The 2011 orders triggered a controversial probe into major U.S. banks’ foreclosure files to determine how many borrowers should be compensated and were amended in 2013 when the OCC and the Federal Reserve decided to halt the review before it was finished. The regulators ultimately reached a settlement with 15 banks related to foreclosure problems.

The national bank units of EverBank Financial Corp., HSBC Holdings PLC, Santander Holdings USA Inc. and U.S. Bancorp were also hit with additional penalties for failing to complete “required corrective actions,” the OCC said.

OCC didn’t immediately indicate what corrective actions each bank had failed to complete.

The penalties on the six banks involve restrictions on their mortgage servicing operations, including limits on the banks’ ability to acquire residential mortgage servicing rights or outsource their existing mortgage servicing rights. Many banks have pulled back significantly from the mortgage-servicing industry in recent years but OCC officials said in a conference call that mortgage servicing remains a “significant activity” for each of the six banks.

“For a number of these institutions, increasing the servicing book is still a significant part of their business strategy,” said Morris Morgan,a deputy comptroller for large banks.

“We’ve made significant progress, which has earned us the highest ratings among large banks by the U.S. Department of the Treasury’s MHA Program and JD Power, and we believe we’re in a position to complete our remaining items by the end of the summer,” a J.P. Morgan spokeswoman said in an emailed statement.

HSBC and Wells Fargo face the harshest restrictions of the six. Both are flatly prohibited from increasing the size of their mortgage book by purchasing servicing rights, entering into new contracts to do servicing for other parties and offshoring additional servicing activities. The other four banks must seek supervisory approval to take such actions. OCC officials said the difference reflects both the number and severity of the outstanding problems at those two banks.

OCC officials also said that additional enforcement actions will be taken against the six at a future date related to the foreclosure and mortgage-servicing problems but just what those are will depend on how quickly they address outstanding issues.

In addition, the OCC said it was lifting consent orders against three big banks related to the foreclosure probe—the national bank units of Bank of America Corp., Citigroup Inc. and PNC Financial Services Corp.

“Regulators recognized Bank of America’s improvement in the way we operate our mortgage business to better assist customers, particularly in times of financial difficulty. We have helped more than 2 million customers avoid foreclosure and put legacy mortgage issues behind us, including products and programs inherited from Countrywide,” a spokesman said in an email.

The OCC announced it would effectively end its role in the settlement program related to the foreclosure probe at the end of the year. The regulator said it would transfer any remaining uncashed payments to the states so borrowers can collect them there. The regulator expects to have about $280 million left at the end of the year to send to the states.

The OCC said that, to date, the program has distributed more than $2.7 billion to more than 3.2 million borrowers from banks overseen by the regulator, representing more than 90% of the total funds available.

Write to Victoria McGrane at victoria.mcgrane@wsj.com

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CALIBER HOME LOANS

CALIBER COMPLAINT:

Submitted:      May 2015

Reported By:     Ramona in Waterford, Michigan

Report Link:   CLICK HERE

Disorganized crime somewhere in the US

I've been working on a modification with these people [Caliber Home Loans] for the last year and a half. I submitted full paperwork no less than three times and finally got some help when I involved the State of Michigan. I received HAMP funds and a new payment but now not only are my new payments not being recorded, they're sending foreclosure notices based on not receiving the amount of the old payment. There's ONE 800 number that rings at a call center but you can't get past them to get any real help. Is this a scam company? Does anybody know what's going on here?

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Hi Ramona,

I have had many dealings with Caliber Home Loans and can completely validate your complaints. I commend you for contacting the state of Michigan, as that is an excellent and important step in asserting your consumer rights.

You have so many consumer rights and consumer protections under the FDCPA and the CFPB and the FTC and RESPA with regard to your complaint and it only takes a few minutes to submit the complaints online to the CFPB and FTC for an immediate response and action.

In fact, we covered your complaint today on our radio show The Daily Complaint and provided a pathway for success to include how to contact the CFPB - thank you for posting your complaint online via the Ripoff Report so that others will have the opportunity to learn from your experiences in dealing with Caliber Home Loans. There are firm rules in place with regard to the posting of your payments during the MHA HAMP trial period plan and also to moving forward with foreclosure but again, you must know your rights in order to exercise your rights.

In addition to submitting complaints to the CFPB, I would suggest preparing a QWR for Caliber Home Loans – you can learn how through the CFPB by typing in QWR in their search bar. They are required to acknowledge the QWR per RESPA in 5 business days and answer it in 30 business days or you do have recourse, so listen to us address your complaint on The Daily Complaint today and contact us if you need further information on how to not only attack your problem but to get the solutions that you are seeking. You can hold Caliber Home Loans accountable for their actions!

Good luck!

Respectfully,

Dana Shafman

Managing Member

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(888) 234-7006 Ext 101

Dana@ConsultingEND.com

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NATIONSTAR MORTGAGE

NATIONSTAR COMPLAINT:

Submitted:      June 2015

Reported By:     pattiv in Deltona, Florida

Report Link:   CLICK HERE

They [Nationstar Mortgage] are horrible!

Nationstar has made my life a living hell. In Feb. I made 3 months of payments because I fell behind and at tax time got caught up. This time, I made the payments and continued to make payments. Then in April, my payment was returned. I couldn’t understand why so I called and they told me the payment I made in Feb. was returned NSF. I knew it didn’t and called my bank that agreed it was paid. We sent statements and letters from the bank and I call them on a weekly basis. They kept insisting it was returned but couldn’t tell us where it was returned to. I made another payment in May, which they are just holding. Now in June, they tell me it was not returned it was applied to the account but I’m like no it didn’t, look at the balance. They want me to repay a huge amount that I don’t owe so now I’m going to lose my house. They are so frustrating and clueless about what is going on. I need help I’m at my wits end.

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Hi pattiv,

Nationstar Mortgage is known for violating the rights of their clients and consumers in general but you do not have to sit back and take it! You have so many consumer rights and consumer protections under the FDCPA and the CFPB and the FTC and RESPA with regard to your complaint and it only takes a few minutes to submit the complaints online to the CFPB and FTC.

In fact, we covered your complaint today on our radio show The Daily Complaint and provided a pathway for success to include how to contact the CFPB and FTC - thank you for posting your complaint online so that others will have the opportunity to learn from the wrongdoing that you have experienced at the hands of Nationstar Mortgage and other debt collectors responsible for servicing your mortgage. There are firm rules in place with regard to the posting of your payments and also to threatening foreclosure when not warranted or in error but again, you must know your rights in order to assert your rights.

In addition to submitting complaint to the CFPB and FTC, I would suggest preparing a QWR for Nationstar Mortgage – you can learn how through the CFPB by typing in QWR in their search bar. They are required to acknowledge the QWR per RESPA in 5 business days and answer it in 30 business days or you do have recourse, so listen to us address your complaint on The Daily Complaint today and contact us if you need further information on how to not only attack your problem but to get the solutions that you are seeking. You can hold Nationstar accountable for their actions!!!

Also, DO NOT listen to any idiot that tells you that you are wrong and do not have consumer rights because they are wrong, period.

Good luck!

Respectfully,

Dana Shafman

Managing Member

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(888) 234-7006 Ext 101

Dana@ConsultingEND.com

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SELECT PORTFOLIO SERVICING

SPS COMPLAINT:

Submitted:      May 2015

Reported By:     Chantal in Dorchester, Massachusetts

Report Link:   CLICK HERE

SPS Select Portfolio Servicing they are trying to foreclose on my property.

Hi

In October 2013 Chase mortgage bank gave my mortgage to be serviced to SPS portfolios servicing. Chase withheld 2 mortgages before the transfer. Since November 2013 SPS portfolios servicing is trying to foreclose on me as they state I am missing 2 mortgage payments. I tried to write and fax and speak to them and sent them information how Chase has the 2 payments but they refused to acknowledge the situation.

They also refused to respond to my qualified written request.

Please do not do any business with them.

END CONSULTING ADVICE:

Hi Chantal,

SPS is known for violating the rights of their clients and consumers in general but you do not have to sit back and take it! You have so many consumer rights and consumer protections under the FDCPA and the CFPB and the FTC and RESPA with regard to your complaint and it only takes a few minutes to submit the complaints online to the CFPB and FTC.

In fact, we covered your complaint today on our radio show The Daily Complaint and provided a pathway for success to include how to contact the CFPB and FTC - thank you for posting your complaint online so that others will have the opportunity to learn from the wrongdoing that you have experienced at the hands of SPS and Chase. There are firm rules in place with regard to the transferring of your mortgage loan to a new owner and/or servicer and also to threatening foreclosure when not warranted or in error but again, you must know your rights in order to assert your rights.

The QWR that you submitted to SPS should have been acknowledged per RESPA in 5 business days and answered in 30 business days or you do have recourse, so listen to us address your complaint on The Daily Complaint today and contact us if you need further information on how to not only attack your problem but to get the solutions that you are seeking.

Good luck!

Respectfully,

Dana Shafman

Managing Member

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(888) 234-7006 Ext 101

Dana@ConsultingEND.com

www.TheDailyComplaint.com