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Banking

New Video Explains Foreclosure Review Process

foreclosure signA new video released by the Federal Reserve Board explains how eligible borrowers can apply for an independent foreclosure file review.

English and Spanish versions of the video are available on the Board's website and on YouTube. The video details how borrowers who believe they were financially harmed by the foreclosure process in 2009 and 2010 can request a free review.

The Independent Foreclosure Review is part of the April 2011 enforcement actions that the Fed issued against four large mortgage servicers—GMAC Mortgage, HSBC Finance Corporation, SunTrust Mortgage, and the EMC Mortgage Corporation. A number of other servicers supervised by the Office of the Comptroller of the Currency are also included in the program.

Borrowers are eligible for a review if they meet the following requirements:

  • The property securing the loan was the borrower's primary mortgage
  • The mortgage was at some point in the foreclosure process between January 1, 2009, and December 31, 2010
  • The mortgage was serviced by one of the mortgage servicers listed on the Board's site (see related links).

According to the Board's May 23 press release, borrowers "may be eligible to receive compensation if the independent review finds evidence of direct financial injury due to servicer error."

The deadline for borrowers to apply for an independent review is July 31, 2012, and there is no cost to participate in the program.

May 30, 2012