The order comes after the CFPB found that some of these banks may have resorted to fraudulent and deceptive practices in their foreclosure proceedings. The banks named in the order are: Bank of America, Citibank, JPMorgan Chase, MetLife, PNC, US Bank, and Wells Fargo.
The CFPB's investigation into the foreclosure processes of these seven banks began in 2012. During the course of the investigation, the CFPB discovered that the banks may have utilized faulty documents and process deficiencies while conducting foreclosure proceedings. These issues likely caused significant harm to homeowners, as some customers were wrongfully foreclosed upon, or their foreclosure proceedings were unduly prolonged.
According to the CFPB order, all seven banks must conduct a comprehensive review of their foreclosure processes which must cover all cases dating back to January 1, 2009. The banks must also provide restitution to affected homeowners if any misconduct is found during the review process. Furthermore, the banks must perform an independent audit every two years to ensure that they remain compliant with all federal consumer finance laws.
The CFPB's order is a positive step towards ensuring fairness and equity for homeowners affected by foreclosure. Foreclosure can be an immensely stressful and difficult process for many individuals, so it is important that banks handle this process appropriately and do not resort to any kind of unlawful maneuvering. Additionally, the audit requirement ensures that these banks will be held accountable for their actions and must remain compliant with federal consumer protection laws.
In summary, the CFPB recently ordered seven large banks to review their foreclosure processes due to evidence that they may have used fraudulent and deceptive practices while handling these proceedings. All seven banks must conduct a comprehensive review of their foreclosure cases from January 1, 2009 and provide restitution to affected homeowners if any misconduct is found. Furthermore, they must submit an independent audit every two years to prove their compliance with federal consumer protection laws. This order is an important step in making sure that consumers are adequately protected from any wrong doing by financial institutions.
This article was contributed on Aug 18, 2023
