HUD Audit Memos by the Inspector General: JP Morgan Chase, Wells Fargo, CitiMortgage, Ally (GMAC), Bank of America

The Office of the Inspector General for HUD issued these audit memoranda today.  It’s astounding that they so matter-of-factly relate a culture of long-standing fraud and obstruction of the investigation.

FEATURED REPORTS

To save time we have provided these quick access links to the recently featured Audit Memorandums. You can also find all memorandums in their respective state sections on our External Audits Page.

 

Issue Date: March 12, 2012
Audit Memorandum No. 2012-KC-1801

 

Title: CitiMortgage, Inc. Foreclosure and Claims Process Review O’Fallon, MO

 

Summary: As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Bank of America, Wells Fargo Bank, CitiMortgage, JP Morgan Chase, and Ally Financial, Incorporated) we reviewed CitiMortgage’s foreclosure and claims processes. In addition to this memorandum, OIG issued separate memorandums for each of the other four reviews. OIG performed these reviews due to reported allegations made in the fall of 2010 that national mortgage servicers were engaged in widespread questionable foreclosure practices involving the use of foreclosure “mills” and a practice known as “robosigning” of sworn documents in thousands of foreclosures throughout the United States.
DOJ used our review and analysis in negotiating a settlement agreement with CitiMortgage.  On February 9, 2012, DOJ and 49 State Attorneys General announced a proposed settlement of $25 billion with CitiMortgage and four other mortgage servicers for their reported violations of foreclosure requirements. As part of the proposed settlement agreement, each of the five servicers will pay a portion of the settlement to the United States and also must undertake certain consumer relief activities. The proposed settlement agreement described tentative credits that each mortgage servicer will receive for modifying loans, including principal reduction and refinancing, and established a monitoring committee and a monitor to ensure compliance with agreed-upon servicing standards and the consumer relief provisions. Once the final settlement agreement has been approved by the Court, OIG will issue a separate summary memorandum detailing each of the five servicers’ allocated share of payment due as a result of the settlement agreement and recommendations to correct weaknesses discussed in this and the other four memorandums.


Issue Date: March 12, 2012
Audit Memorandum No. 2012-PH-1801

 

Title: Ally Financial, Incorporated Foreclosure and Claims Process Review Fort Washington, PA

 

Summary: As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Bank of America, Wells Fargo Bank, CitiMortgage, JP Morgan Chase, and Ally Financial, Incorporated) we reviewed Ally Financial, Incorporated’s foreclosure and claims processes.  In addition to this memorandum, OIG issued separate memorandums for each of the other four reviews.  OIG performed these reviews due to reported allegations made in the fall of 2010 that national mortgage servicers were engaged in widespread questionable foreclosure practices involving the use of foreclosure “mills” and a practice known as “robosigning” of sworn documents in thousands of foreclosures throughout the United States.
The U.S. Department of Justice (DOJ) used our review and analysis in negotiating a settlement agreement with Ally.  On February 9, 2012, DOJ and 49 State attorneys general announced a proposed settlement of $25 billion with Ally and four other mortgage servicers for their reported violations of foreclosure requirements.  As part of the proposed settlement agreement, each of the five servicers will pay a portion of the settlement to the United States and also must undertake certain consumer relief activities.  The proposed settlement agreement described tentative credits that each mortgage servicer will receive for modifying loans, including principal reduction and refinancing, and established a monitoring committee and a monitor to ensure compliance with agreed-upon servicing standards and the consumer relief provisions.  Once the final settlement agreement has been approved by the court, OIG will issue a separate summary memorandum detailing each of the five servicers’ allocated share of payment due as a result of the settlement agreement and recommendations to correct weaknesses discussed in this and the other four memorandums.


Issue Date: March 12, 2012
Audit Memorandum No. 2012-CH-1801

 

Title: JPMorgan Chase Bank N.A. Foreclosure and Claims Process Review Columbus, OH

 

Summary: As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) servicers (Bank of America, Wells Fargo Bank, CitiMortgage, Ally Financial, Incorporated, and JPMorgan Chase Bank), we reviewed JPMorgan Chase Bank’s (Chase) foreclosure and claims processes. In addition to this memorandum, OIG issued separate memorandums for each of the other four reviews.1 We performed these reviews due to reported allegations made in the fall of 2010 that national mortgage servicing lenders were engaged in widespread questionable foreclosure practices involving the use of foreclosure “mills” and a practice known as “robosigning”2 of sworn documents in thousands of foreclosures throughout the United States.

DOJ used our review and analysis in negotiating a settlement agreement with Chase. On February 9, 2012, DOJ and 49 State attorneys general announced their proposed settlement of $25 billion with Chase and the four other mortgage servicers for their reported violations of foreclosure requirements. As part of the proposed settlement agreement, each of the five servicers will pay a portion of its settlement to the United States and also must undertake certain consumer relief activities. The proposed settlement agreement described tentative credits that each mortgage servicer would receive for modifying loans, including principal reductions and refinancing, and established a monitoring committee7 and a monitor to ensure compliance with agreed-upon servicing standards and consumer relief provisions. Once the final settlement agreement has been approved by the courts, OIG will issue a separate summary report detailing each of the five servicers’ allocated share of payment due as a result of the settlement agreement.


Issue Date: March 12, 2012
Audit Memorandum No. 2012-FW-1802

 

Title: Bank of America Corporation, Foreclosure and Claims Process Review Charlotte, NC

 

Summary: As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Bank of America, Wells Fargo Bank, CitiMortgage, JP Morgan Chase, and Ally Financial, Incorporated) we reviewed Bank of America’s foreclosure and claims processes.  In addition to this memorandum, OIG issued separate memorandums for each of the other four reviews.  OIG performed these reviews due to reported allegations made in the fall of 2010 that national mortgage servicers were engaged in widespread questionable foreclosure practices involving the use of foreclosure “mills” and a practice known as “robosigning” of sworn documents in thousands of foreclosures throughout the United States.

DOJ used our review and analysis in negotiating a settlement agreement with Bank of America.  On February 9, 2012, DOJ and 49 State attorneys general announced a proposed settlement of $25 billion with Bank of America and four other mortgage servicers for their reported violations of foreclosure requirements.  As part of the proposed settlement agreement, each of the five servicers will pay a portion of the settlement to the United States and also must undertake certain consumer relief activities.  The proposed settlement agreement described tentative credits that each mortgage servicer will receive for modifying loans, including principal reduction and refinancing, and established a monitoring committee and a monitor to ensure compliance with agreed-upon servicing standards and the consumer relief provisions.  Once the final settlement agreement has been approved by the court, OIG will issue a separate summary memorandum detailing each of the five servicers’ allocated share of payment due as a result of the settlement agreement and recommendations to correct weaknesses discussed in this and the other four memorandums.


Issue Date: March 12, 2012
Audit Memorandum No. 2012-AT-1801

 

Title: Wells Fargo Bank, Foreclosure and Claims Process Review, Fort Mill, SC

 

Summary: As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Bank of America, Wells Fargo Bank, CitiMortgage, JP Morgan Chase, and Ally Financial, Incorporated) we reviewed Wells Fargo’s foreclosure and claims processes. In addition to this memorandum, OIG issued separate memorandums for each of the other four reviews. OIG performed these reviews due to reported allegations made in the fall of 2010 that national mortgage servicers were engaged in widespread questionable foreclosure practices involving the use of foreclosure “mills” and a practice known as “robosigning” of sworn documents in thousands of foreclosures throughout the United States.
DOJ used our review and analysis in negotiating a settlement agreement with Wells Fargo. On February 9, 2012, DOJ and 49 State attorneys general announced a proposed settlement of $25 billion with Wells Fargo and four other mortgage servicers for their reported violations of foreclosure requirements. As part of the proposed settlement agreement, each of the five servicers will pay a portion of the settlement to the United States and also must undertake certain consumer relief activities. The proposed settlement agreement described tentative credits that each mortgage servicer will receive for modifying loans, including principal reduction and refinancing, and established a monitoring committee and a monitor to ensure compliance with agreed-upon servicing standards and the consumer relief provisions. Once the final settlement agreement has been approved by the court, OIG will issue a separate summary memorandum detailing each of the five servicers’ allocated share of payment due as a result of the settlement agreement and recommendations to correct weaknesses discussed in this and the other four memorandums.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s