The Federal Reserve Board terminated enforcement actions related to residential mortgage loan servicing and foreclosure processing issued in 2011 and 2012 against 10 banking organizations. Also, the agency announced civil money penalties totaling $35.1 million against five of the 10 organizations that had not previously been fined. The latest penalties bring the total up to $1.1 billion against all Fed supervised firms under mortgage servicing enforcement actions.
The 10 banking organizations are: Ally Financial Inc.; Bank of America Corporation; CIT Group, Inc. (as successor to IMB HoldCo LLC); The Goldman Sachs Group, Inc.; HSBC North America Holdings, Inc.; JPMorgan Chase & Co.; Morgan Stanley; The PNC Financial Services Group, Inc.; SunTrust Banks, Inc.; and U.S. Bancorp. The enforcement actions required all of the firms to improve oversight of residential mortgage loan servicing and required the firms with mortgage servicing subsidiaries supervised by the Fed to correct deficiencies in residential mortgage loan servicing and foreclosure processing.
The latest penalties announced are: $14 million against Goldman Sachs; $8 million against Morgan Stanley; $5.2 million against CIT(as successor to IMB); $4.4 million against U.S. Bancorp; and $3.5 million against PNC.
The Fed also announced the termination of joint enforcement actions issued in 2011 against Lender Processing Services, Inc. (LPS), which was succeeded by ServiceLink Holdings, LLC, and against MERSCORP Holdings, Inc., formerly known as MERSCORP, Inc. (MERS). The termination of the actions was based on evidence of sustainable improvements in the foreclosure-related practices of LPS and MERS.
Companies: Ally Financial Inc.; Bank of America Corporation; CIT Group, Inc.; The Goldman Sachs Group, Inc.; HSBC North America Holdings, Inc.; IMB HoldCo LLC; JPMorgan Chase & Co.; MERSCORP Holdings, Inc.; MERSCORP, Inc.; Morgan Stanley; The PNC Financial Services Group, Inc.; ServiceLink Holdings, LLC; SunTrust Banks, Inc.; U.S. Bancorp.
MainStory: TopStory BankingOperations FederalReserveSystem Loans Mortgages
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