Fed’s Mortgage Servicing Penalties Exceed $1 Billion
On January 12, 2018, the Federal Reserve Board (Fed) announced new civil money penalties of $35.1 million for mortgage loan servicing violations against five banks. This brings the total amount of penalties to more than $1 billion against all Fed supervised banks related to mortgage servicing enforcement actions. In addition, the Fed announced that it was terminating enforcement actions against 10 banks for residential mortgage loan servicing and foreclosure processing enforcement actions issued back in 2011 and 2012. The enforcement actions were terminated because the Fed felt that the banks had made sustainable improvements in mortgage servicing practices and oversight.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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