Big banks fail regulator tests

by Justin da Rosa01 Jul 2015
Despite promising to rectify numerous foreclosure abuses, Wells Fargo, JPMorgan Chase U.S. Bancorp and several others have not properly satisfied the regulators.

“We’re not satisfied with where they are at this point in time,” Morris Morgan, deputy comptroller for large banks, said during a conference call according to Detroit News.

Other banks who failed the mortgage servicing tests include Santander Bank, EverBank and HSBC.

Regulators expect banks to make good on those promises within months and not years.

As a result of the failed grades, Wells Fargo and HSBC have been banned from acquiring additional mortgage servicing rights.

Three other banks, including Bank of America, Citigroup and PNC Financial complied with the orders handed out by the regulators.

“Each of the three banks that have satisfied the requirements of the order has completed a significant transformation of their operations, but even the six banks that are getting amended orders have undertaken a significant volume of work,” Morris Morgan, a deputy comptroller for large banks at the OCC, said in a conference call with reporters.
Citigroup, however, did receive failing grades for loan modifications. 


Should CFPB have more supervision over credit agencies?