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Minneapolis-Based US Bankcorp to Be Fined for Foreclosure Activity

Posted on Apr 15, 2012

Earlier this year, the federal and state governments agreed to a $25 billion settlement related to alleged foreclosure abuses. Late last month, eight banks that were not party to that settlement were notified that they may be subjected to fines by the Federal Reserve for allegedly improperly foreclosing on homeowners.

The eight banks that were part of the March 2012 Federal Reserve notification include: EverBank, Goldman Sachs Group, HSBC Holdings PLC, PNC Financial Services Group, MetLife, OneWest Bank, SunTrust Banks, and US Bancorp. US Bancorp is headquartered in Minneapolis, Minnesota.

According to the Federal Reserve, these eight financial institutions are to be fined for their “unsafe and unsound practices in their loan servicing and foreclosure processing.” It is unclear exactly what those practices were that raised concern or violated regulations such that the Federal Reserve felt a fine was appropriate. The amount of the fines to be imposed has not yet been released. US Bankcorp announced in January 2012 that it had set aside $130 million during the fourth quarter of 2011 to deal with mortgage servicing matters. It is unknown whether that number will be too little, too much or just right to satisfy the Federal Reserve.

U.S. Bankcorp has issued a statement informing the public that they "have always regarded foreclosure as the last resort and we will continue to support our customers during these challenging economic times."

Our Minneapolis-St. Paul foreclosure lawyers remind homeowners that they have the right to consult with an experienced attorney prior to foreclosure.

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