US regulators impose limits on mortgage business for 6 banks; end orders against 3 others

Economic Indicators Associated Press

Federal regulators have imposed restrictions on mortgage business for six banks, saying they've fallen short in meeting requirements of agreements addressing past abuses in the foreclosure process.

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The Office of the Comptroller of the Currency, part of the Treasury Department, announced the action Wednesday against the banks: JPMorgan Chase, Wells Fargo, U.S. Bank, HSBC, Santander and EverBank.

The agency said the banks haven't met all the requirements of the 2011 enforcement orders issued by the government, which found that some lenders rushed the foreclosure process without carefully reviewing documents.

The restrictions include limits on buying rights from other banks to service mortgages.

At the same time, the agency lifted its enforcement orders against Bank of America, Citigroup and PNC, finding them to be in compliance with the orders.