Homeowners could be compensated for foreclosure errors

WASHINGTON – Current and former homeowners who went through foreclosure in 2009 or 2010 could have their cases reviewed and be compensated for mistakes made by banks under a program being planned by federal regulators, The Wall Street Journal reported.
The program is expected to be announced this month and be available to as many as 4.5 million borrowers, according to an estimate from the Office of the Comptroller of the Currency.
The reviews would be conducted by third-party companies hired by banks as part of a consent order they signed with regulators earlier this year.
A broad public outreach campaign to alert potentially eligible buyers would accompany the program.
The program is part of the government’s response to complaints about the banks’ use of “robo-signers” who signed off on large numbers of foreclosure filings without having personal knowledge of each case.