FOR IMMEDIATE RELEASE
June 30, 2011
Contact: Bryan Hubbard
OCC Issues Guidance To Banks Regarding Foreclosure Practices
WASHINGTON — The Office of the Comptroller of the Currency today clarified expectations for the oversight and management of mortgage foreclosure activities by national banks.
While the interagency reviews of 14 large mortgage servicers conducted in the fourth quarter of 2010 and subsequent enforcement actions address the majority of the mortgage servicing market, the guidance issued today is intended to ensure that all mortgage servicers under OCC supervision adhere to appropriate foreclosure management standards.
OCC Bulletin 2011-29 stresses that banks engaged in mortgage servicing must ensure compliance with foreclosure laws, conduct foreclosures in a safe and sound manner, and establish responsible business practices that provide accountability and appropriate treatment of borrowers. The bulletin provides additional clarification on expectations regarding governance of foreclosure process to include adequate staffing and training, dual-track processing, management of affidavit and notary practices, documentation, oversight of third-party service providers, and adherence to all laws and regulations related to mortgage foreclosure.
The bulletin also directs all national banks to conduct a self-assessment of foreclosure management practices no later than September 30, 2011 and correct any weaknesses identified. National bank examiners will review the self-assessments and corrective actions in the next quarterly review or examination of the bank.
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