OCC Induces EverBank Settlement

Real Estate Attorney with http://irstaxdebt.pro

Seems like every day there is a new lawsuit alleging lender misconduct as well as a new settlement. The Office of the Comptroller of the Currency (OCC) has done it again. Recently the OCC has questioned EverBank Financial for mismanaging foreclosures and the foreclosure review process. This new round of accusations is the result of a previous OCC agreement with the lender and 15 other larger lenders.  This agreement led many servicing agents to agree to and then abandon an independent foreclosure review process. EverBank opted not to abandon a mortgage and foreclosure review process when many other lenders did. As a result of a recent OCC review, Everbank now has agreed to provide “about $37 million in cash payments” to mortgage borrowers whose homes were “in any state of foreclosure from 2009 to 2010” and additional payouts to housing advocacy groups. OCC regulators have been working for quite some time on “encouraging” EverBank to abandon its tedious, file-by-file foreclosure and mortgage review process.


Now that EverBank has agreed to abandon the individual evaluations, OneWest Bank is the only lender still conducting foreclosure reviews on a case-by-case basis. One West servicing has been sold to Ocwen so perhaps this is no longer an issue. Previously, lenders have sent about $2.7 billion in checks to more than three million borrowers since the OCC settlement. This does not include the aforementioned Evergreen settlement. Many of these checks were for amounts as low as $300.

When distressed homes became an issue, my opinion is that the OCC did very little. Letters and complaints to them resulted in little action or results. However, this seems to have dramatically changed recently. In the past, I did not recommend working with the OCC on a distressed property, but now I do. They do not have as much authority as some would opine, but when they can intervene, it is a useful tool at this point.


Paddy Deighan J.D. Ph.D



Comments (17)

First Last name
Keller Williams Preffered - Raleigh, NC

Interesting! thank you for sharing this information.

Sep 12, 2013 02:43 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Interesting.  It is unfortunate that on top of some of the banks making loans they should never have made, it was compounded by the way in which they mishandled the foreclosures.  These small amount of money to those harmed doesn't even begin to make up for the harm to the homeowner.

Sep 12, 2013 06:09 AM
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor


Thank you for the update on OCC. Now if only OneWest Bank would join the majority...and do the right thing.

Sep 12, 2013 06:21 AM
Trisha Bush-LeFore
Preferred Properties Land & Homes - Walla Walla, WA
Providing Realtor Services in the Walla Walla Area

Great to read an update on this issue. Seems there's only so much more progress to be made.

Sep 12, 2013 06:30 AM
Jay & Michelle Lieberman
Keller Williams World Class - Agoura Hills, CA
Creating Calm in the Buying and Selling Chaos

Such a good update.  Thanks very much.

Sep 12, 2013 07:41 AM
Paddy Deighan MBA JD PhD
http://irstaxdebt.pro - Vail, CO
Paddy Deighan J.D. Ph.D

It is nice to see that a governmental agency is monitoring such things...wish there was some more teeth to the oversight

Sep 12, 2013 10:56 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Paddy, the OCC helped us with a short sale a few years ago - to get the bank back on track and it was OCWEN. They had charged off a second loan during the short sale process and not notified anyone and the amount the second would take had already been negotiated. Good to hear that EverBank is abandoning that process.

Sep 12, 2013 12:49 PM
Jon Quist
Tucson's BUYERS ONLY Realtor since 1996

If the OCC had enough staff they could find many more violations. The banks as an entity really were the cause of most of the 2008 recession, after all.

Sep 12, 2013 05:07 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

In 2009 my short sale client filed a complaint with OCC and that did wake up their lender (1st lienholder) to stall foreclosure as they would not respond to us when we had short sale approval with the second lienholder (CitiMortgage). Incidentally the lender happened to be OneWest Bank and they did eventually agree to short sale and we were able to close.

Sep 12, 2013 08:12 PM
Annett T. Block
NextHome Connect Realty - Fort Lauderdale, FL
Your NextHome in Fort Lauderdale Beach

Did everybody really think the foreclosure review was going to be fair and justified? Don't think so! OCC needs to get more involved but they as well are not stuffed and equip enough so many lenders take the chance. Lenders still will make money off it even with huge fines and many are back in business. 

Sep 12, 2013 10:40 PM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Overall nothing much was done during the whole debacle. It's really a shame.

Sep 12, 2013 11:49 PM
Michael J. O'Connor
Diamond Ridge Realty - Corona, CA
Eastvale - 951-847-4883

Wish I had known about what Pamela (#10) stated - I think that I might have saved a short-sale or two from foreclosure.....

Sep 13, 2013 12:47 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team
Thanks Paddy, we wish people worked as hard on an honest living as they do dishonest.
Sep 13, 2013 02:06 AM
Marlis Landreth
Retired - Tucson, AZ
Retired Tucson Realtor

Paddy, it seems there has been so little help for so many distressed homeowners.  Hopefully, this is a good sign of things to come. 

Sep 13, 2013 03:52 AM
Marnie Matarese
Showing you the best of Sarasota!

Thanks for this great post.  I am in a short sale situation with Everbank that has been dragging on for 11 months and I have been in great fear that they are just stalling while trying to foreclose.  Am sending this info to the short sale facilitator who may or may not have this information.

Sep 14, 2013 12:09 AM
Paddy Deighan MBA JD PhD
http://irstaxdebt.pro - Vail, CO
Paddy Deighan J.D. Ph.D

there seems to be no question that the OCC helps in some instnaces, but in the vast majority of cases, nothing seems to happen

Sep 14, 2013 05:32 AM
Paddy Deighan MBA JD PhD
http://irstaxdebt.pro - Vail, CO
Paddy Deighan J.D. Ph.D

I did not realize that this was featured!! Sheez, I thoyught that there would be ore comments than this!!!!!! :)

Sep 16, 2013 06:12 AM