OCC Imposes $70 Million Fine Against National Bank for Allegedly Violating Mortgage Servicing Consent Order

Banking  •  Mortgage  •  OCC

Enforcement_evergreen1On May 25, the Office of the Comptroller of Currency (OCC) entered a consent order with a national bank stemming from allegations that the bank violated a 2011 consent order concerning its mortgage servicing related activities.  The OCC alleged that the bank had violated the consent order during the period from October 1, 2014 through August 31, 2015, by (1) identifying active accounts for which a Payment Change Notice (PCN) should have been filed, but nonetheless failing to do so in a timely manner; and (2) making escrow calculation errors on 76,720 accounts because of an error in the bank’s proprietary loan software tool.  The OCC found that the bank’s escrow calculation errors resulted in 184 incorrect loan modification denials.  The consent order requires the bank of pay a $70 million civil money penalty.  The OCC simultaneously issued an order terminating the 2011 consent order against the bank.

Download PDF

Tagged with 

Comments are closed.