The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) completed its nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Ally Financial, Incorporated, Bank of America, CitiMortgage, JPMorgan Chase, and Wells Fargo Bank). We performed these reviews due to reported allegations made in the fall of 2010 that national mortgage servicing lenders were engaged in widespread questionable foreclosure practices involving the use of foreclosure “mills” and a practice known as “robosigning”. On March 12, 2012, we issued separate memorandums to HUD, which detailed our results for each of the five reviews (2012-PH-1801, 2012-FW-1802, 2012-KC-1801, 2012-CH-1801, and 2012-AT-1801).

In February 2012, DOJ and the State attorneys general announced their proposed joint settlement agreement totaling $25 billion with the five mortgage servicers for their reported violations of State and Federal foreclosure requirements. On March 12, 2012, DOJ and the State attorneys general filed consent judgments with the court. The two documents below are the settlement documents with CitiMortgage and Bank of America/Countrywide.