Federal Reserve fines five banks to wrap up mortgage servicing charges

WASHINGTON, Jan 12 (Reuters) - The Federal Reserve fined five large U.S. banks a combined $35.1 million to settle cases of mortgage servicing flaws da

WASHINGTON, Jan 12 (Reuters) – The Federal Reserve fined five large U.S. banks a combined $35.1 million to settle cases of mortgage servicing flaws dating back to 2011.

The central bank announced the fines against Goldman Sachs , Morgan Stanley, CIT Group, U.S. Bancorp , and PNC Financial as part of a broader effort to terminate enforcement actions begun in 2011 and 2012 against large banks for mortgage servicing shortcomings.

Ally Financial, Bank of America, HSBC North America Holdings, JPMorgan Chase and SunTrust Banks had already paid penalties for similar issues. All 10 banks had enforcement actions under the Fed ended on Friday, as the regulator cited “sustainable improvements” in their servicing practices. (Reporting by Pete Schroeder Editing by Chizu Nomiyama)

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