EverBank Financial (EVER) has reached a $43 million settlement with the Office of the Comptroller of the Currency in connection with allegations of improper foreclosure practices.
The Jacksonville, Fla., company has agreed to pay $37 million to more than 32,000 borrowers whose homes were in foreclosure in 2009 and 2010, the OCC said Friday. The checks will range from $1,050 to $125,000 per borrower, plus equity where appropriate.
EverBank also agreed to pay $6.3 million to nonprofits that focus on affordable housing or foreclosure prevention as well as organizations certified by the Department of Housing and Urban Development.
The settlement stems from a decision earlier this year by regulators to let 16 banks halt costly audits of their foreclosure practices in exchange for settlement payments. Fourteen of the banks agreed to a $9.3 billion settlement. The other two banks were EverBank and OneWest Bancorp in Pasadena, Calif., which is still conducting loan reviews.
EverBank completed a sample loan review which included all of the customers who had requested a review, "but there were additional reviews required which would have taken an extended period," OCC spokesman Bryan Hubbard said.
None of the banks, including EverBank, has admitted any wrongdoing.
The OCC said borrowers had cashed more than 3 million checks totaling nearly $2.7 billion as of Aug. 22 as part of the earlier settlement with the 14 banks. Those banks include Bank of America (BAC), Citigroup (NYSE: C) , JPMorgan Chase (JPM) and Wells Fargo (WFC). The OCC expects the remainder of the earlier settlement to be paid this summer; some of the checks were delayed because more information was needed from the borrowers, Hubbard said.