New OCC Review Standards Target Foreclosure Abuse

As published in the State Bar of Michigan e-News – Real Property Law Section

By Douglas E. Kelin

Douglas-KelinOn April 19, 2013, the Office of the Comptroller of the Currency (OCC) published new guidance for residential mortgage servicers to establish minimum foreclosure processing standards. The new standards are intended to create consistency in servicer review and validation of files when a foreclosure sale is imminent.

The failure of the nation’s largest lenders to strictly comply with applicable law in the years after the housing crisis resulted in last year’s $25 billion national mortgage settlement. Widespread failures in the foreclosure process included errors in foreclosure documents, failing to provide sufficient notice of default, foreclosing on borrowers protected by bankruptcy or in the midst of a valid loan modification, and foreclosing on mortgages that lenders did not own. Click here for full article