Did you hear the news? After months of opposition to the proposed merger of CIT Group and OneWest Bank, the Federal Reserve and Office of the Comptroller of the Currency announced late last Friday that the regulators will host a public hearing on the merger in Los Angeles on February 26th.
If you are a homeowner whose mortgage was or is serviced by OneWest Bank, or a reverse mortgage serviced by Financial Freedom, you should STRONGLY consider sharing your experience with the Federal Reserve and OCC. The deadline to provide comments was extended until February 26th, and it’s important regulators hear from Main Street as they make their decisions.
Housing counselors rated OneWest Bank as one of the most difficult mortgage servicers to work with in helping homeowners to avoid foreclosure, and if this was your experience, the Federal Reserve and OCC should know about it.
In addition, you may have heard about the controversial “shared loss” agreement the FDIC extended to the billionaire owners of OneWest bank. Under this agreement, the FDIC is reimbursing OneWest for costs related to foreclosing on IndyMac mortgages. You can read more about the $1 billion that’s already been paid out, as well as the expected $1.4 billion expected to be paid out before 2019 by reading CRC’s Fact Sheet on this topic.
Did we mention that we had to submit a FOIA request to find out how much the FDIC had paid out?
Financial Freedom, a subsidiary of OneWest who services mortgages, has also been in the news a lot recently for its foreclosure practices, especially as they relate to surviving spouses of deceased reverse mortgage borrowers. If you have encountered problems in trying to work with Financial Freedom/OneWest after the death of a loved one, CRC would like to hear from you. Please email: scoffey AT calreinvest.org
It is VITAL that regulators hear from Main Street about this merger. If you need help submitting comments, please let us know.
You can send an email to these two addresses, and let them know you’re writing about the CIT Group merger with OneWest Bank. The deadline is February 26, so get those comments in soon!
PS: If you’d like to learn more about this merger, we are including a few resources below:
Prezi Presentation: The Too Big To Fail Merger of CIT Group and OneWest Bank: What you need to know