Regulators Extend Foreclosure Review, Issue Financial Remediation Framework, Publish Status Report

Foreclosure Federal Reserve Mortgage Servicing OCC

On June 21, the OCC and the Federal Reserve Board announced that the deadline for borrowers to seek review of foreclosures under the Independent Foreclosure Review program has been extended through September 30, 2012. At the same time, the regulators released a Financial Remediation Framework that sets out specific recommendations for remediation of financial injury for servicing errors, depending on the type of error and whether the foreclosure was in progress or complete at the time of remediation. Independent consultants will use the Framework to recommend remediation for financial injury identified during the Independent Foreclosure Review. Each servicer will prepare its own remediation plan based on independent consultant recommendations, which must be approved by the federal banking regulators. Also on June 21, the OCC published its second interim report on the status of the Independent Foreclosure Review and actions required under the April 2011 consent orders.