A number of US banks have teamed up to ensure that consumer complaints related to foreclosure processing are addressed. These major banks plan to launch a common website, as well as a toll-free phone number and advertising campaign.
This coordinated effort is a response to a demand last spring from U.S. regulators for major banks to drastically change their foreclosure practices. Namely, regulators ordered banks to set up a simpler, single process for consumers who wish to apply for a case review, rather than requiring that a separate application be filed for each mortgage company.
These changes are designed to put an end to lenders filing foreclosures without proper documentation or sufficient staff to address the needs of their struggling borrowers.
Regulators Value Consistency is Review Process
Specifically, regulators are looking for banks to apply quality control to all foreclosure cases, to ensure that each and every customer case is dealt with in a consistent, sensitive way. However, cases of compensations for consumers will still be dealt with on a case-by-case basis.
While the banks maintain that they have discovered no evidence of wrongful foreclosures, their revised complaint process ought to ensure that none occur in the future.
These changes are being conducted by many of the nation’s largest home-loan providers, who are paying an estimated $25 billion to ensure that customer disputes are met with appropriately. Representatives suggest that this may not be the end of their investment; the total cost of locating and compensating borrowers who are harmed will not be known until the end of the process.