OCC to Escheat Funds from the Foreclosure Review, Terminates Orders Against Three Mortgage Servicers, Imposes Restrictions on Six Others

WASHINGTON, June 17, 2015 /PRNewswire-USNewswire/ -- The Office of the Comptroller of the Currency (OCC) today announced it will escheat at the end of 2015 any remaining uncashed payments made pursuant to the Independent Foreclosure Review (IFR) Payment Agreement so eligible borrowers and their heirs may claim the funds through their states' escheatment processes. The agency also terminated foreclosure-related consent orders against three national bank mortgage servicers that have met the consent order requirements, and imposed business restrictions on six banks that have not completed the required corrective actions.

To date, the IFR Payment Agreement resulted in the distribution of more than $2.7 billion to more than 3.2 million eligible borrowers from OCC-supervised institutions. This amount represents more than 90 percent of the total amount available for distribution. Despite that high cash rate compared to many other payment distributions, the OCC anticipates that approximately $280 million from OCC-supervised institutions will remain unclaimed at the end of the year. The decision to escheat all funds from uncashed checks provides the remaining eligible borrowers and their heirs the additional opportunity to claim the funds through their states' escheatment claims processes. The OCC's decision only affects funds attributable to orders issued to institutions it regulates.

Also announced today, the OCC terminated orders against Bank of America, N.A.; Citibank, N.A.; and PNC Bank, N.A., because it determined that these institutions have complied with the orders issued in April 2011 and amendments issued in February 2013.

The OCC also has determined that EverBank; HSBC Bank USA, N.A.; JPMorgan Chase Bank, N.A.; Santander Bank, National Association; U.S. Bank National Association; and Wells Fargo Bank, N.A., have not met all of the requirements of the consent orders. As a result, the amended orders issued today to these banks restrict certain business activities that they conduct. The restrictions include limitations on:

• acquisition of residential mortgage servicing or residential mortgage servicing rights (does not apply to servicing associated with new originations or refinancings by the banks or contracts for new originations by the banks);
• new contracts for the bank to perform residential mortgage servicing for other parties;
• outsourcing or sub-servicing of new residential mortgage servicing activities to other parties;
• off-shoring new residential mortgage servicing activities; and
• new appointments of senior officers responsible for residential mortgage servicing or residential mortgage servicing risk management and compliance.

These restrictions vary based on the particular circumstance of each bank.

In all cases, OCC examiners will continue to oversee these institutions' corrective actions and mortgage servicing activities as part of the agency's ongoing supervision.

More information is available at www.occ.gov.

SOURCE Office of the Comptroller of the Currency

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http://www.occ.gov