Feds Continue To Blow the Whistle on Banks in Miami Foreclosure Cases

July 15, 2011

The Office of the Comptroller of the Currency recently issued a memo to banks to require self-assessments of foreclosure management practices to make sure they conform with the U.S. Department of The Treasury's guidelines.

This is a welcome step in the continuing battle that Miami Foreclosure Defense Lawyers and others have fought with lenders who have filed shoddy paperwork in order to try to take away people's homes. If you want to fight a foreclosure in Miami, do so from a position of strength by attacking the banks and their unethical dealings.
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As the Miami Foreclosure Lawyer Blog has previously reported, the banks have had many problems with foreclosure filings throughout the country. Some judges have ruled against banks because they couldn't prove who owned the house after problems with the Mortgage Electronic Recording System, or MERS. Other issues that have arisen include the use of mortgage servicers that have forged documents that were never reviewed for accuracy in tens of thousands of mortgage foreclosure filings.

Miami Foreclosure Defense Lawyer Bruce Jacobs is a member of Max Gardner's Army, a network of mortgage foreclosure lawyers sharing techniques in real time on how to fight for homeowners. Through constant sharing of information, tactics and other data, this network is on the forefront of fighting the banks on behalf of homeowners nationwide.

According to the memo recently filed by the Office of the Comptroller of the Currency, banks are directed to perform self-assessments that include testing and file reviews. This is a bit like having the fox guard the hen house at this point, but any enforcement is welcome news.

In late 2010, several federal financial agencies, including the Federal Reserve and Federal Deposit Insurance Corporation, reviewed of foreclosure processing at 14 federally regulated mortgage servicers. That reviews included policies and procedures, quality control and audits, oversight and staffing and other areas. The agencies found "critical weaknesses" in foreclosure governance processes, foreclosure documentation preparation processes and oversight and monitoring of third-party vendors. The memo states that the weaknesses resulted in "unsafe and unsound" practices and violations of state and federal laws.

The agencies have told banks they need to follow certain standards:

Foreclosure process governance: Management should ensure that foreclosure governance processes are sufficient to manage and control the many areas of foreclosure activities. Staffing, policies and procedures, training and other areas were of concern.

Dual track processing: If a lender is working with a homeowner to modify the mortgage, the foreclosure process should be suspended to reduce confusion to homeowners during the process.

Affidavit and notarization practices: Management must ensure that documents are truthful, accurate and adequately supported by file documentation.

Documentation practices: Management must ensure that all documents be properly endorsed or assigned. And a clear audit trail be available for tracking the documents.

Legal compliance: Management must ensure adherence to all laws and regulations, including keeping in mind the protections provided through the Service members Civil Relief Act.

Third-party vendor management: Management should properly structure, conduct and manage relationships with third-party vendors, including law firms working for the banks.

If you feel overwhelmed because the banks are coming after you and your house, get an experienced Miami Foreclosure Lawyer at your side in order to fight back.

If you are fighting foreclosure in Miami or the surrounding areas, contact Bruce Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 358-7991.

More Blog Entries:

Banks' Problems Continue to Linger as Miami Foreclosure Processing Slows: June 26, 2011

Additional Resources:

Office of the Comptroller of the Currency Supervisory Guidance Memo: 20110630 OCC FC Management Guidance.pdf