The Office of the Comptroller of the Currency (OCC) has ordered seven of the nation's largest residential bank servicers to review their foreclosure processes in the wake of revelations by Ally Financial that it had cut corners when taking title to homes backed by delinquent mortgages.
The seven banks include: Bank of America, Citigroup, HSBC, JPMorgan Chase, PNC Bank, U.S. Bancorp, and Wells Fargo.
According to figures compiled by ASR's sister publication, National Mortgage News and the Quarterly Data Report, BofA, Wells, and JPM rank first, second and third, respectively, in terms of residential servicing rights with $5.2 trillion in housing receivables and a combined market share of 54%. (The rankings are as of June 30.)
Citi ranks fourth, and USB sixth. PNC, through its National City Mortgage unit, ranks ninth. HSBC is way down on the list at number 18.
The OCC told lawmakers on Thursday that some servicers have "deficiencies" when it comes to their foreclosure practices.
Ally Financial and JPM have halted, for now, foreclosures in several states, pending a review of their policies and procedures. Several state attorney generals are now reviewing the matter.