Several Mortgage Companies Facing Penalties

After the massive wave of "critical deficiencies" was unearthed in last year's mortgage scandal, several mortgage companies could be facing serious punishments. The acting head of the Office of the Comptroller of the Currency, John Walsh, revealed that the national probe that uncovered hundreds of errors will show that mortgage servicers broke laws while wrongfully evicting hundreds of homeowners.

In a testimony before Congress last week Walsh added that "these deficiencies have resulted in violations of state and local foreclosure laws, regulations, or rules and have had an adverse affect on the functioning of the mortgage markets and the U.S. economy as a whole."

While he didn't mention any servicers in particular Walsh was likely targeting big names like Wells Fargo, JP Morgan, Citibank and Bank of America. Penalties could include loan modifications, banks forgiving a portion of principal balances owed or massive fines paid to the government.

Facing foreclosure due to poor loan modification practices?  Contact the Malaise Law Firm to get help from a San Antonio bankruptcy attorney.