Regulatory Alerts2013-04-23
Added · Updated
SR 13-9 / CA 13-6: Minimum Standards for Prioritization and Handling Borrower Files with Imminent Scheduled Foreclosure Sale
The Board of Governors of the Federal Reserve System issued this joint letter with the OCC to establish minimum standards for the prioritization and handling of borrower files facing imminent foreclosure sales. The guidance applies to all Federal Reserve-supervised financial institutions engaged in mortgage servicing, requiring them to implement pre-foreclosure reviews to ensure compliance with legal protections and loss mitigation requirements before proceeding with sales. Institutions must immediately adopt these standards to prevent borrowers from losing their homes without adequate review and to align with broader industry practices established by previous enforcement actions.