Federal banking regulators last week released their Financial Remediation Framework for independent foreclosure review consultants to use in determining the compensation due homeowners financially injured by servicers’ foreclosure practices in 2009 and 2010, generally capping damages at $125,000 but allowing borrowers to pursue litigation if they so choose. “The guidance helps ensure that similarly situated borrowers who suffered financial injury as a result of errors in foreclosure actions on their homes are treated similarly,” said the Office of the Comptroller of the Currency, which issued the guidance in conjunction with the Federal Reserve Board. Under the framework, remediation could include lump-sum payments; suspension or rescission of a foreclosure; the provision of...