Bank Foreclosures in Question by Federal Regulators

Federal regulators asked the leading mortgage lenders in the U.S. to give regulators a plan to address problems with current bank foreclosure practices.  We have all heard of some of the bigger problems, banks foreclosing on houses that they don’t own, and fraudulent signatures and bank processes.  Back in April of this year, the federal government asked 16 of the nation’s major mortgage banks and lenders to reimburse homeowners who were incorrectly foreclosed upon.  (It is not bad enough that the banks are foreclosing on real foreclosed homes, they also have to foreclose on ones that aren’t even supposed to be foreclosed.)

The mortgage lenders were given 45 days in April to hire auditors to show how many home owners could have avoided foreclosure in the first place during 2009 and 2010.  Banks were asked to submit new plans to show how they intended to fix these problems in their foreclosure proceedings.

Not too surprisingly, the mortgage lenders are asking for more time to meet the federal regulators’ requests.  The Department of Justice has now extended the deadline by 30 days to work with the state and federal agencies involved.

Some of the lenders named in the regulatory action are Citibank, Bank of America, JPMorgan Chase, and Wells Fargo.

Too bad it is too late for them to go back in time and give those wrongly foreclosed homes back to the owners.

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