Florida-based EverBank agreed last week to pay approximately $37 million to more than 32,000 eligible mortgage borrowers and $6.3 million to certified housing assistance organizations.
Borrowers whose homes were in any stage of foreclosure between 2009 and 2010 with EverBank are eligible to receive compensation. Borrowers will receive compensation whether or not they filed a request for review.
The firm was subject to a cease and desist order for its unsafe and unsound mortgage servicing and foreclosure processing practices.
EverBank will consent to an amendment to the order, which will end the Independent Foreclosure Review process for the company and its customers. The company will evaluate each eligible borrower in the process of foreclosure for a new loand modification, where possible, and will set up a special complaint process to resolve borrower complaints related to credit report errors.
Approximately $6.3 million will go to housing assistance organizations certified by the U.S. Department of Housing and Urban Development or other tax-exempt organizations that seek to provide foreclosure prevention and affordable housing.
EverBank is one of 16 mortgage servicers to reach a deal with the OCC and Federal Reserve in 2011, after homeowners accused the company of using fraudulent and incomplete paperwork to rapidly foreclose—a practice known as robo-signing, The Washington Post reports.