U.S. Bancorp and Banco Santander Agrees to Pay $13.4M to Resolve OCC Foreclosure Restrictions

by San Antonio Attorney

A total of $13.4 million will be paid by the U.S. Bancorp and Banco Santander SA to resolve complaints brought by Office of the Comptroller of the Currency due to the banks’ mistakes in how they handled the bureau’s mandates to correct their improper foreclosure practices.

The monetary penalty is a result of the two banks’ violations of 2013 agreements over mortgage-servicing malpractices, according to OCC.  The recent punishment bars a succession of limitations imposed against the companies in June because they did not fulfill an earlier accord that involved loans improperly handled following the financial crisis in 2008.

Some of the mortgage services that were accused of robo-signing or improper mishandling of loan documents were Santander U.S. unit and U.S.  Bank.  They dishonestly endorsed affidavits in foreclosure lawsuits.  In 2013, the majority of companies agreed to pay a total of $10 billion in settlements and to change their foreclosure methods.

But regulators say that many of them failed to meet those terms.  The OCC, which monitors national banks, fined some of those banks in June, barring their ability to get servicing rights pending their fulfillment of the settlement deal.  The new agreement made on Feb.  9 releases U.S. Bancorp and Santander from those restrictions.

The OCC emphasizes that Santander made many changes to improve how our mortgages are handled, as the bank said.  U.S. Bancorp also said that it is satisfied to have the disagreement resolved.

In January, JPMorgan Chase & Co. was dealing with a related action, causing it to shell out $48 million to fix its own shortcomings.  Bank of America Corp., PNC Financial Services Group Inc., Citigroup Inc., and OneWest Bank have already fulfilled their requirements, as previously stated by OCC.  The biggest mortgage lender, Wells Fargo, did not fulfill the settlement terms and still face limitations on mortgage servicing.

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