Federal Reserve sanctions 10 banks for mortgage practices

The Federal Reserve said it's taken enforcement action against 10 banks over "a pattern of misconduct and negligence related to deficient practices in residential mortgage loan servicing and foreclosure processing. These deficiencies represent significant and pervasive compliance failures and unsafe and unsound practices at these institutions." The banks are
Bank of America (BAC), Citigroup (C), Ally Financial, the HSBC North America unit of HSBC Holdings (HBC) , J.P. Morgan Chase (JPM) , MetLife (MET) , PNC Financial Services (PNC) , SunTrust Banks (STI) , U.S. Bancorp (USB) and Wells Fargo (WFC) . In addition to the actions against the banking organizations, the Federal Reserve on Wednesday announced formal enforcement actions against Lender Processing Services, Inc. (LPS), a domestic provider of default-management services and other services related to foreclosures, and against MERSCORP, Inc., which provides services related to tracking and registering residential mortgage ownership and servicing, acts as mortgagee of record on behalf of lenders and servicers, and initiates foreclosure actions

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