The Federal Reserve is closing the book on sanctions against U.S. banks over improper handling of post-crisis mortgage foreclosures, fining firms including Goldman Sachs Group Inc. and the IndyMac successor formerly chaired by Treasury Secretary Steven Mnuchin.
In an enforcement case that has stretched across seven years, the Fed is ending its role by fining five companies, the agency said in a statement Friday.
More than $35 million in new penalties include $14 million for Goldman Sachs, $8 million for Morgan Stanley, $4.4 million for U.S. Bancorp, $3.5 million for PNC Financial Services Group Inc. and $5.2 million for CIT Group Inc., which had purchased OneWest Bank — the firm that bought IndyMac.
Mnuchin was chairman of OneWest and Comptroller of the Currency Joseph Otting was its chief executive officer when the firm faced earlier foreclosure sanctions.
The Fed had earlier fined other banks, including Bank of America Corp., JPMorgan Chase & Co., Ally Financial Inc., Suntrust Banks Inc. and HSBC Holdings Plc.
After the banks were accused of botching thousands of foreclosures in 2011, the Fed and other regulators required lenders to fix problems in their servicing of residential mortgages.
The Fed’s termination of the earlier enforcement actions means the regulator is satisfied that the firms have improved their practices, the agency said.
IndyMac Bancorp failed in 2008 as one of the mortgage meltdown’s major casualties.