Regulators Review Foreclosure Documents, Check for Errors

By Kyle Chezum Updated on 12/15/2010

12/15/2010

At the urging of a group of House Representatives, bank regulators have begun reviewing foreclosure files at some major financial institutions to check for errors.  The audit is intended to shed light on accusations that foreclosure documents were reviewed improperly, or, in some cases, not reviewed at all.

Much of the issue stems from loan servicing firms hired by banks to process paperwork and make and collect payments.  In an effort to cut costs and keep up with a high volume of foreclosures, some of these servicing firms may have allowed dubious foreclosures to take place.  Representative Brad Miller, North Carolina, is glad to see regulators looking into this activity.  “It sounds like they are now looking at the right things,” he said.

For full story, click here.