Thursday
Feb172011
U.S. close to punishing banks over foreclosure fraud
(Reuters) - U.S. bank regulators are finalizing punishments against mortgage servicers after a probe found "critical deficiencies" with the industry's foreclosure processes. John Walsh, the acting head of the Office of the Comptroller of the Currency, said a national probe of foreclosure paperwork and procedures found that mortgage servicers broke laws, and that a small number of homeowners were wrongly evicted.
Asked if the magnitude of the potential penalties could reach the range of billions or even tens of billions of dollars, Stevens declined to comment.
Feb 17, 2011 at 10:59 AM
