Report Criticizes Banks for Handling of Mortgages

Federal regulators are reporting that many banks did not handle the foreclosure crisis well, and evicted homeowners when it was not necessary to do so. This report has motivated 14 mortgage servicers to sign consent agreements saying they will make changes for better accountability and oversight. The enforcement actions will be substantial and expensive and will require lenders to fix existing problems. Additional features of the mortgage crisis, according to the report, include issues with lost documents, tracking failures, improper oversight and poorly trained staff. Although some believe banks have taken a step in the right direction, many advocates are complaining that regulators are not doing enough to protect homeowners.

SOURCE: NY Times, 4/13/11

URL: http://www.nytimes.com/2011/04/14/business/14foreclose.html