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Wronged Homeowners May Soon Seek Bank Relief

(Reuters) - Homeowners who believe they were wrongly foreclosed upon will soon be able to request that their cases be reviewed as part of a government settlement with large lenders, a top bank regulator said on Monday.

As part of a settlement announced in April, 14 large mortgage servicers, including Bank of America Corp and JPMorgan Chase & Co, are required to hire independent consultants to review any foreclosures initiated in 2009 and 2010.

Bank regulators have ordered the lenders to set up a single system where borrowers can request that their specific case be reviewed to ensure anyone with a grievance is not missed.

That system will be up and running in a few weeks, Acting Comptroller of the Currency John Walsh said on Monday.

"As we explored the best means of ensuring that injured homeowners had the opportunity to seek relief, it became clear that what was needed was a robust, transparent and accessible complaint process that will give borrowers the opportunity to request an independent foreclosure review," Walsh said in a speech at a conference hosted by The American Banker.

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