On January 5, 2016, the Office of the Comptroller of Currency (“OCC”) announced that it had terminated consent orders against two national banks. In doing so, the OCC assessed civil money penalties against the banks relating to previous violations of the existing consent orders. The OCC announced that it was terminating these orders because the banks now comply with the orders, thus ending the business restrictions affecting the banks.
The consent orders were initially issued by the OCC and the former Office of Thrift Supervision in April 2011. They were subsequently amended in February 2013 and June 2015. The civil money penalties paid by the two banks are in addition to significant 2013 settlements the OCC reached with 15 banks. Four national banks continue to operate under consent orders and restrictions.
In terminating the consent order against the first national bank, the OCC assessed a $48 million civil money penalty against the bank based on alleged violations between October 1, 2014 and June 30, 2015 concerning its mortgage servicing practices. The OCC also alleged that between December 1, 2011 and November 19, 2013, the bank engaged in filing practices in bankruptcy courts that did not comply with bankruptcy rules and constituted unsafe and unsound banking practices.
In terminating the consent order against the second national bank, the OCC assessed a $1 million civil money penalty against the bank. The OCC alleged that the bank violated its 2011 consent order by charging improper fees related to mortgage electronic registration assignments, property inspections, and late fees. These actions are alleged to have affected approximately 47,000 borrowers. The OCC stated that the bank has begun to make $1.6 million in remediation payments to affected borrowers.