Foreclosures get a new review process

In light of recent evidence proving several major financial institutions mishandled foreclosure paperwork, many homeowners who lost their properties have requested that their cases be reviewed by the government for any in appropriate practices by lenders. As part of a settlement with the U.S. government, 14 large mortgage lenders including Bank of America and JPMorgan Chase will be required to hire independent consultants to review any foreclosed properties processed between 2009 and 2010.

Reuters reported the goal of the reviews will be to identify any foreclosures that were inappropriately handled by lenders, and force the banks to compensate the homeowners for their financial harm. Banks are required to set up a single system through which borrowers can request a review, so no complaint is left unheard.

Major U.S. banks, therefore, plan to launch a shared website, toll-free number and advertising campaign to create awareness of the review process for foreclosed homeowners. The review process will be independent of the mortgage lenders, and compensation for consumers will be determined on a case-by-case basis, Acting Comptroller of the Currency John Walsh said in a press conference.

"(The reviewing of foreclosures) requires a strong quality control process to ensure each institution is treating cases of financial harm in a consistent way," Walsh said.

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