The Federal Reserve Board terminated its enforcement action against EverBank Financial Corp. issued in April 2011 related to residential mortgage loan servicing and foreclosure processing.
The announcement stated that the board terminated these actions against EverBank at this time to coordinate with the timing of the acquisition of the company by the Teachers Insurance and Annuity Association, a nationwide consumer and commercial bank with $27.4 billion in total assets.
Toward the end of last year, EverBank revealed TIAA acquired it, significantly expanding its banking and lending products. The transaction is slated to be complete by mid-2017.
Along with the termination, the board also announced a $1.8 million civil money penalty against EFC for its mortgage servicing deficiencies related to that enforcement action.
The enforcement action required EFC to enhance its oversight over the mortgage servicing and foreclosure processing of its thrift subsidiary, EverBank.
EverBank’s enforcement action came in conjunction group of other enforcement actions against other major mortgaging servicing organizations, along with a separate enforcement action, also issued in April 2011, from the Office of the Comptroller of the Currency. Similarly, the action from the OCC also asked EverBank to correct its servicing practices.
However, the OCC terminated its action in January 2016 after it determined EverBank had complied with the action’s requirements.
This new enforcement action termination reflects that Federal Reserve supervisory teams have found sustainable improvement in EFC’s oversight over EverBank’s mortgage servicing practices.
An EverBank spokesperson declined to comment.