Morgan Stanley Strikes Foreclosure Deal With The Fed

Law360, New York (April 3, 2012, 1:51 PM EDT) -- Morgan Stanley on Tuesday agreed to implement mortgage servicing reforms and compensate homeowners that were victims of wrongful foreclosures as part of a consent decree with the Federal Reserve over practices at a subsidiary of the investment bank.

Under the consent decree, New York-based Morgan Stanley agreed to implement reforms and foreclosure reviews similar to those that five of the nation's largest banks agreed to under February's $25 billion mortgage servicing settlement.

“The review is intended to provide remediation to borrowers who suffered financial injury as...
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