2 Banks Agree on Fines to End Foreclosure Enforcement

The Detroit News | February 9, 2016   U.S. Bancorp will pay $10 million and Banco Santander SA agreed to turn over $3.4 million to settle Office of the Comptroller of the Currency complaints over missteps in how the banks handled regulators’ orders to fix faulty foreclosure practices.

The fines stem from violations of 2013 accords over mortgage-servicing flaws, the OCC said in a statement Tuesday. The new penalties close out a series of restrictions the companies were placed under in June after they failed to live up to earlier agreements related to loans mishandled after the 2008 financial crisis.

U.S. Bank and the Santander U.S. unit formerly known as Sovereign Bank were among a group of mortgage servicers accused of mishandling loan papers or robo-signing — fraudulently endorsing affidavits used in foreclosures. After an aborted effort to force the banks to review individual files for wrongdoing, most of the companies agreed in 2013 to pay a combined $10 billion in settlements and to fix their practices.  Read more here.