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.

 

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John Zasada is a principal with CLA and leads the firm’s financial institution regulatory compliance practice. He assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, training staff on regulations, and performing website compliance assessments. In addition, John is a frequent speaker at industry conferences and state associations. Prior to joining CLA, he served as managing director at a top-10 accounting firm and as the compliance officer of a large financial institution, where he developed and implemented its first regulatory compliance program.

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