Release Date: March 8, 2012
For immediate release
The Federal Reserve Board on Thursday released action plans for three supervised financial institutions to correct deficiencies in residential mortgage loan servicing and foreclosure processing. The three institutions are HSBC North America Holdings, Inc., Ally Financial Inc., and IMB HoldCo. LLC.
The Federal Reserve also released the engagement letter between HSBC and the independent consultant HSBC retained to review foreclosures that were in process in 2009 and 2010.
The action plans and engagement letters are required by formal enforcement actions issued by the Federal Reserve last year. The Federal Reserve first released a group of action plans and engagement letters on February 27. Release of the action plans and engagement letters follows reviews conducted from November 2010 to January 2011, in which examiners found unsafe and unsound processes and practices in residential mortgage loan servicing and foreclosure processing at a number of supervised institutions.
The Federal Reserve anticipates that more engagement letters and action plans will be released soon.
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