Fed, OCC Extend Foreclosure Review Deadline to Dec. 31, 2012

The Federal Reserve and Office of the Comptroller of the Currency extended to the end of the year their deadline for borrowers to request a review of foreclosures that may have been mishandled.

The deadline extension “provides more time to increase awareness about the Independent Foreclosure Review and how eligible borrowers may request a review, and to encourage the broadest participation possible,” the regulators said in a statement today in Washington.

A group of the largest mortgage servicers was ordered by the Office of the Comptroller of the Currency and other banking regulators last year to clean up their foreclosure practices and hire independent consultants to see whether their methods in 2009 and 2010 unfairly hurt customers.

The 14 firms, including JPMorgan Chase & Co. (JPM), Citigroup Inc. (C), Bank of America Corp. and Wells Fargo & Co. (WFC), could be instructed to give lump-sum payments of between $500 and $125,000 in each case involving improper practices.

People who lost homes to foreclosure in 2009 and 2010 can file to have their cases reviewed for potential errors and misrepresentations, and can do so through www.independentforeclosurereview.com.

To contact the reporter on this story: Joshua Zumbrun in Washington at jzumbrun@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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