Wednesday, May 23, 2012

Federal Reserve Explains How Borrowers Can Apply for Free, Independent Foreclosure File Review

۩ ۩ ۩

Independent Foreclosure Review PSA

The Federal Reserve Board on Wednesday announced the availability of a new video that explains how borrowers who believe they were financially harmed during the mortgage foreclosure process in 2009 and 2010 can apply for a free, independent foreclosure file review.

The brief announcement reminds borrowers that, as part of the enforcement actions taken in April 2011 by federal banking regulatory agencies, they may be eligible to receive compensation if the independent review finds evidence of direct financial injury due to servicer error. Borrowers are eligible for a review if their primary residence was in the foreclosure process in 2009 or 2010 and their mortgage loan servicer is participating in the Independent Foreclosure Review.

The Federal Reserve Board issued enforcement actions against four large mortgage servicers (GMAC Mortgage, HSBC Finance Corporation, SunTrust Mortgage, and EMC Mortgage Corporation) in April 2011. Under those actions, the four servicers were required to retain independent consultants to review foreclosures that were initiated, pending, or completed during 2009 or 2010. The review is intended to determine if borrowers suffered financial harm directly resulting from errors, misrepresentations, or other deficiencies that may have occurred during the foreclosure process. The servicers are required to compensate borrowers for financial injury resulting from deficiencies in their foreclosure processes.

If you had a mortgage loan on your primary residence and believe you were financially harmed during the mortgage foreclosure process by any of the four servicers in 2009 or 2010, you can request an independent review and potentially receive compensation. The four servicers are required to make the independent reviews available to borrowers as part of their compliance with the April 2011 enforcement actions.

Eligibility for Review

Borrowers are eligible for an independent foreclosure review if they meet the following criteria:
=> The property securing the loan was the borrower's primary residence;
=> The mortgage was in the foreclosure process (initiated, pending, or completed) at any time between January 1, 2009, and December 31, 2010; and
=> The mortgage was serviced by one of the following mortgage servicers:

America's Servicing Company
National City Mortgage
Aurora Loan Services
EMC Mortgage Corporation
PNC Mortgage
BAC Home Loans Servicing
EverBank/EverHome Mortgage Company
Sovereign Bank
Bank of America Financial Freedom
SunTrust Mortgage
GMAC Mortgage
U.S. Bank
Wachovia Mortgage
Washington Mutual (WaMu)
IndyMac Mortgage Services
Wells Fargo Bank, N.A.
MetLife Bank
Wilshire Credit Corporation

The list of participating servicers can be found at:

۩ ۩ ۩

Seeking Alpha