More than four million borrowers will be able to request a review of their foreclosure cases.
The Office of the Comptroller of the Currency announced that 14 mortgage servicers began sending out letters to millions of eligible customers explaining how to request a case review if they believe they were subject to an improper foreclosure action. If a homeowner is found to have suffered financial harm as a result of a foreclosure error, the customer may receive compensation or another remedy, the press release states.
Spokesperson Bryan Hubbard told POLITICO “between now and the end of the year more than four million letters will go out.”
The cases will be reviewed by independent consultants, acting Comptroller of the Currency John Walsh said. To qualify for a review, the mortgage loan must have been active in the foreclosure process between Jan. 1, 2009 and Dec. 31, 2010, and the property must have been the customer’s primary residence.
“The independent foreclosure review is a significant component of the mortgage servicers’ compliance with our enforcement actions,” Walsh said in a press release. “These requirements help ensure that the servicers provide appropriate compensation to borrowers who suffered financial harm as a result of improper practices identified in our enforcement actions.”