12 Jan Fed levies fresh foreclosure-related fines as it terminates penalties against others
The Federal Reserve on Friday announced fresh penalties against five banks as it terminated enforcement action against ten big banks due to foreclosure violations.
The central bank however terminated the enforcement actions against 10 firms over the so-called robo-signing and related abuses. Robo-signing refers to mass production of false foreclosure orders without conducting the proper reviews.
The Fed said there was evidence of “sustainable improvements in the firms’ oversight and mortgage practices” in concluding enforcement actions against Ally Financial ALLY, -0.43% , Bank of America BAC, +0.77% , CIT Group CIT, +1.30% , Goldman Sachs, HSBC North America HSBC, +0.35% , JPMorgan Chase JPM, +0.90% , Morgan Stanley, The PNC Financial Services Group PNC, -0.11% , SunTrust Banks STI, +0.77% and U.S. Bancorp USB, +0.49% .
The Fed also concluded enforcement action against the successor company to Lender Processing Services and Merscorp Inc., also due to what the Fed called sustainable improvements in foreclosure-related practices.
The new $35 million of fines brings the total penalties to $1.1 billion for mortgage service violations, most of which were assessed in 2011.