U.S. regulators are preparing to sanction some of the 14 largest, federally regulated banks for "critical deficiencies and shortcomings" in foreclosure procedures, Acting Comptroller of the Currency John Walsh testified on Thursday. In remarks before the Senate Banking Committee, Walsh said that a multi-agency task force had concluded its examination of the banks and found violations of state and local foreclosures laws, regulations and rules.
Federal Reserve board member: U.S. investigation into mortgage servicing has found 'widespread weakness'
The preliminary results of a multi-agency federal review of the mortgage industry has found "widespread weaknesses" that impair the function of the housing market and hurt consumers, according to Federal Reserve board of governors member Sarah Bloom Raskin. "We have reached the point where this sign of failure is hindering our economy's ability to rebound," Bloom Raskin said in remarks prepared for delivery to mortgage finance executives at a conference in Utah Friday evening.
The Obama administration today released a white paper that proposes winding down mortgage giants Fannie Mae and Freddie Mac and putting new measures in place that would lessen government's role in the housing finance system. The Post's Zach Goldfarb has a full report on the plan and its potential impact. The long-anticipated report has prompted responses and assessments from politicians, industry groups and analysts in Washington and beyond. Here's a look at some of them.
Bank of America is aggressively maneuvering to get a Nevada county judge's order halting more than 8,900 foreclosures statewide by one of its subsidiaries overturned. In one of a growing number of foreclosure cases across the country in which judges are questioning whether notices and documents were improperly prepared, Nye County District Court Judge Robert Lane issued a preliminary injunction against BofA's ReconTrust, blocking it from proceeding with with non-judicial foreclosures until a Feb. 28 hearing.
The Massachusetts Supreme Court on Friday upheld a lower court ruling voiding two foreclosures because the banks failed to show the proper paperwork to prove they owned the loans-a decision that challenges the way mortgages were bundled and sold around the world. Shares of Wells Fargo and U.S. Bancorp--the banks involved in the case--as well as those of other banks fell following the announcement of the decision. Wells Fargo was down 3.4 percent and US Bancorp 1.1 percent at midday. The closely-watched decision involves two foreclosures: that of Antonio Ibanez and Mark and Tammy LaRace and whether U.S. Bancorp and Wells Fargo, respectively, had proper legal standing to take back the homes after the borrowers missed their payments.
Treasury Secretary Timothy Geithner told a congressional panel on Thursday that the administration basically saved an economy and housing market on the brink of collapse, and he defended a federal foreclosure prevention program that has fallen far short of its original goals.