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What Does the OCC's Plan for 8 Major Banks Really Mean?

By
Services for Real Estate Pros with Think Glink Media

The Office of the Comptroller of the Currency announced this month that it has created a mandatory course of enforcement action against eight major mortgage service providers like JPMorgan Chase, Citibank, and Wells Fargo. Unlike the loan modification programs, the banks can't choose to sit this one out. 

But what are the banks really required to do? 

On today's Equifax personal finance blog, I break down what the OCC's plan means for the big banks, consumers, and the real estate market. 

Basically, the plan requires improvement in these problem areas: 

  • Better communication with borrowers
  • Prevention against dual tracking
  • Oversight and control of third-party vendors
  • Engagement of an independent auditing firm
  • Establishing restitution processes for borrowers
So what do you think? Is this OCC action going to spell good news for borrowers and the housing market? For a more detailed explanation of what the lenders are required to do under the OCC decision, read my full blog post on the OCC's enforcement against mortgage service providers.

 

 

 

Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blog and CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investor

John Saari
Worcester, MA
"The Mortgage Buddy"

Nice post. I hope this works usually fed plans are great it's just the implementation that stinks.

Apr 29, 2011 09:00 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

This is a really great post. You can never trust the fed to follow through...but who really knows.

Apr 29, 2011 09:48 AM
Richard Glesser
North Country Appraisal Services - Gaylord, MI

Why don't we treat banks who have documents forged in the same manner that individuals who forge documents are treated.  Exactly what would the ramifications be if a real estate broker was caught forging documents for a closing?  It's just not a level playing field.  The regulatory agencies slap the little guy trying to show they are doing their jobs while the big crooks back the semi up to the vault and steal the payload.

Apr 29, 2011 05:49 PM