Fed Fines 5 Big Banks $35 Million for Foreclosure, Mortgage-Servicing Issues
January 12 2018 - 11:30AM
Dow Jones News
By Ryan Tracy
WASHINGTON -- The Federal Reserve fined five big banks $35.1
million for issues related to financial-crisis-era mortgage
servicing and foreclosures, while also moving them out of the
penalty box for what it said was a "substantial improvement" in
their practices.
The fines relate to deficiencies regulators saw in the wake of a
meltdown in the U.S. housing market around the 2008-09 financial
crisis. Goldman Sachs Group Inc. was fined $14 million, Morgan
Stanley $8 million, CIT Group Inc. $5.2 million, U.S. Bancorp $4.4
million and PNC Financial Services Group Inc. $3.5 million.
Separately, the Fed said it was terminating enforcement actions
against those five firms as well as five others: Ally Financial
Inc., Bank of America Corp., HSBC Holdings PLC's U.S. unit,
JPMorgan Chase & Co. and SunTrust Banks Inc.
The 10 firms had been slapped with enforcement actions in 2011
and 2012 for what the Fed said were "deficiencies in residential
mortgage loan servicing and foreclosure processing." The Fed said
the firms have made "substantial improvement" in their
practices.
Separately, the Fed penalized Goldman Sachs $90,000 for
violations related to the National Flood Insurance Act.
Write to Ryan Tracy at ryan.tracy@wsj.com
(END) Dow Jones Newswires
January 12, 2018 11:15 ET (16:15 GMT)
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