Two of the largest banks in Minnesota have agreed to overhaul their mortgage servicing practices and compensate customers for faulty foreclosures.
Wells Fargo and U.S. Bank are among 14 national lenders subject to bank regulators' enforcement actions, which aim to address shoddy foreclosure review processes.
Kevin Mukri, spokesman for the Office of the Comptroller of the Currency, says the banks agreed to an independent review of past foreclosure processes, which could mean compensating customers for mishandled loans. Banks must also overhaul their current mortgage operations.
"Because banking doesn't stop, safe and sound procedures have to begin now," Mukri said.
U.S. Bank says it plays a small role in loan servicing but is committed to working with regulators "to quickly resolve any outstanding issues."
Wells Fargo says the agreement will "make mortgage servicing practices better across the board." The bank says its own review has found no evidence of wrongful foreclosures.