Real Estate Lender Implosion

[up-down]

Bank Regulator Mandates Monthly Details on Mortgage Delinquencies From Nine Banks

February 29, 2008 - 5:57 p.m.

WASHINGTON (AP) - Nine large banks must provide detailed information on mortgage delinquencies and foreclosures every month to a federal regulator.

The Office of the Comptroller of the Currency said Friday it wants to take a closer look at the performance of loans among the banks that it regulates.

It is requiring the information from Citigroup Inc., Bank of America Corp., Wells Fargo & Co., JPMorgan Chase & Co., US Bancorp, National City Corp. HSBC Plc and First Horizon National Corp., an agency spokesman said.

Those banks are large players in the business of loan servicing — collecting and distributing mortgage payments. They will be required to submit results for October 2007 through February by March 31.

The regulator wants the information "in order to assure that we have a detailed picture of the activities of national bank servicers and the performance of loans serviced by them," Comptroller of the Currency John C. Dugan said in a statement. Dugan said regulators met with bank officials earlier this month and were "pleased with the level of cooperation."

Dugan also said the effort will be coordinated with the Bush Administration's effort to stem foreclosures, dubbed "Hope Now."

The agency is looking for information on all loans, not just subprime loans made to borrowers with poor credit. Information will include detailed reports on loan modifications, credit scores, foreclosures and delinquencies, said the spokesman, Robert Garsson.

While the agency has full-time examiners at large banks that are familiar with such data, the agency has not compiled the information before, he said.

http://www.canadianbusiness.com/markets/market_news/article.jsp?content=D8V48STG0