The Office of the Comptroller of the Currency has dismissed one of the consultants overseeing a massive foreclosure review after it discovered a conflict of interest in outside work the company has performed.
The OCC said Friday that it has directed Allonhill to cease reviewing loan files related to the independent foreclosure review, which was required under the April 2011 consent orders with the 14 largest mortgage servicers.
Allonhill was the primary independent consultant for Aurora Bank FSB, and had also reviewed Wells Fargo loan files as a subcontractor for Promontory Financial Group.
The OCC said it made the determination after Allonhill disclosed that it had performed work for "third parties," including reviewing loan files that are part of the same pool of loans that the company was reviewing as part of the foreclosure review.
The agency said it "determined [the work] to be inconsistent with the independence requirements for independent consultants, prescribed by the OCC."
"The decision does not reflect on the quality of work performed to date by Allonhill but is necessary to ensure the independence of the loan review process going forward," the OCC said in a press release.
In a response, the due diligence company said the OCC’s action is without merit.
“At Allonhill, we have always been committed to the highest levels of integrity and transparency," founder and CEO Sue Allon said. "While we have the utmost regard for the objectives of the Independent Foreclosure Review process and its positive impact on the mortgage industry, we are profoundly disappointed by the OCC’s decision. We look forward to continuing to provide the highest quality of services to our clients and helping this country recover from the mortgage crisis.”
The agency did not say when Allonhill performed the work or when it reported the work to the OCC.
An OCC spokesman would not elaborate on the work for third parties, and said the agency would have no additional comment at this time.
Under the consent orders, the servicers are required to hire an independent consultant to oversee the review of foreclosure files. It is not clear if Aurora has hired a replacement consultant.
Karen Sibayan contributed to this report.
