The Office of the Comptroller of the Currency (OCC) issued a report that affirms efforts are under way by the major national banks and federal savings associations to ‘correct deficiencies in mortgage servicing and foreclosure processing’ identified in consent orders issued on April 13 against 12 mortgage servicers.
The OCC's ‘Interim Status Report: Foreclosure-Related Consent Orders’ summarizes progress on activities related to the independent foreclosure review announced Nov. 1, as well as other activities to enhance mortgage servicing operations, including efforts to improve oversight of third-party service providers and activities related to Mortgage Electronic Registration Systems.
‘Work is well under way on the actions necessary to comply with the consent orders,’ says the OCC in its report. ‘Efforts to correct deficiencies in foreclosure processes, management oversight and internal audit are furthest advanced.’
However, the OCC adds that the financial institutions still need to work harder in order to meet the regulatory agency's compliance requirements.
‘While much of the work to correct identified weaknesses in policies, operating procedures, control functions and audit processes will be substantially complete in the first part of 2012, other longer-term initiatives will continue through the balance of 2012,’ the OCC says. ‘Actions and progress vary by servicer. OCC examiners continue to provide ongoing oversight of activities to ensure compliance with the consent orders.’
The full report is available online.