WASHINGTON ( TheStreet) -- The Office of the Comptroller of the Currency said on Tuesday that the nation's largest mortgage servicers would "complete much of the work" required to clean up their loan servicing and foreclosure practices by early next year.
The OCC slapped the largest U.S. mortgage loan servicers, including Bank of America (BAC - Get Report), Citigroup (C - Get Report) subsidiary Citibank, HSBC (HBC), JPMorgan Chase (JPM - Get Report), MetLife (MET) unit MetLife Bank, PNC (PNC - Get Report), U.S. Bancorp (USB - Get Report) subsidiary U.S. Bank, and Wells Fargo (WFC - Get Report), with cease and desist orders in April, requiring the group to hire independent consultants to "conduct a multi-faceted independent review of foreclosure activities in 2009 and 2010," and "to correct deficient and unsafe or unsound practices in their mortgage servicing activities," along with beefing-up their oversight of third-party service providers, and their activities related to Mortgage Electronic Registration Systems, or MERS.
The regulator said that, as required, all the servicers had submitted "independent consultant engagement letters and servicer action plans" in July, and that the "OCC closely evaluated and approved consultants to prevent conflicts of interest."
The agency said work was "well under way on the actions necessary to comply with the consent orders," and that efforts "to correct deficiencies in foreclosure processes, management oversight, and internal audit
Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.