The Fed slapped another eight large banks with fines for what we like to call “foreclosure malpractice”. Perhaps the Fed wanted to make things fair for all banks after last week’s $26 billion settlement with five major lenders.
The banks — EverBank, Goldman Sachs, HSBC North America, OneWest Bank (formerly IndyMac), MetLife, PNC Financial Services Group, US Bancorp and SunTrust Banks – will be fined for “unsafe and unsound practices in their loan servicing and foreclosure processing,” according to the Fed.
The Fed did not immediately release information about the fine amounts.
These eight banks join five other large ones –Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo – that got slapped with a total of $766.5 million last month for foreclosure and servicing abuses.
We’d like to know if all of these banks will actually pay the fines and where all of this fine money will go.