Fed fines five over mortgage foreclosures
The Federal Reserve is closing the book on sanctions against U.S. banks over improper handling of mortgage foreclosures, fining firms that include one once chaired by Treasury Secretary Steven Mnuchin.
In an enforcement case that has stretched seven years, the Fed said Friday that it is fining five companies. More than $35 million in new penalties include $14 million for Goldman Sachs, $8 million for Morgan Stanley, $4.4 million for U.S. Bancorp, $3.5 million for PNC and $5.2 million for CIT, which had purchased One West Bank, the firm that bought Indy Mac.
Mnuchin was chairman of One West and U.S. Comptroller of the Currency Joseph Otting was its chief executive when the firm faced foreclosure sanctions.
After the banks were accused of botching thousands of foreclosures in 2011, the Fed and other regulators required lenders to fix their servicing of residential mortgages.