Fed Levies $35M in Fines Against Five Servicers
January 15, 2018
The Federal Reserve has announced $35.1 million in civil penalties against five financial services companies for “mortgage servicing deficiencies.” However, the central bank also terminated enforcement actions related to residential mortgage loan servicing and foreclosure processing issued in 2011 and 2012 against the same five plus five other banking organizations.
The civil money penalties included $14 million against Goldman Sachs; $8 million against Morgan Stanley, $5.2 million against CIT Group (as successor to IMB HoldCo LLC), $4.4 million against U.S. Bancorp and $3.5 million against PNC Financial Services Group. Those five companies were joined in the termination of earlier enforcement actions by Ally Financial Group, Bank of America Corp. HSBC North American Holding and SunTrust Banks Inc.
“The 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 Federal Reserve to correct deficiencies in residential mortgage loan servicing and foreclosure processing,” said the Fed in a statement. “The termination of the actions was based on evidence of sustainable improvements in the firms' oversight and mortgage servicing practices.”
The Fed joined other federal regulators in announcing the termination of enforcement actions issued in 2011 against Lender Processing Services Inc., which was succeeded by ServiceLink Holdings LLC, and against MERSCORP Holdings, Inc., formerly known as MERSCORP Inc.
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