Federal Reserve to fine eight more banks on foreclosure violations
Eight large banks face will be fined by regulators for foreclosure abuses, the Federal Reserve official said Monday.
The banks -- EverBank, Goldman Sachs, HSBC North America, OneWest Bank, MetLife, PNC Financial Services Group, US Bancorp and SunTrust Banks -- face sanctions for “unsafe and unsound practices in their loan servicing and foreclosure processing,” the Fed said.
No fine amounts were released Monday.
But the Fed believes “monetary sanctions are appropriate” for the banks, Suzanne G. Gillian, the agency’s senior associate director in the Division of Consumer and Community Affairs, told a congressional hearing in New York on Monday. She did not say when the exact fines would be announced.
OneWest Bank, the big Pasadena savings and loan formerly known as IndyMac Bank, declined to comment.
The eight banks would join five other large ones regulated by the Fed that were fined a total of $766.5 million last month for foreclosure and servicing abuses.
Those five -- Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo -- are the largest mortgage servicers and recently agreed to a $25-billion settlement with federal and state authorities to end foreclosure abuse investigations.
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