Fed Focuses on 8 Firms Not Part of Mortgage Settlement

[alp227]

Source: NY Times

Federal regulators are poised to crack down on eight financial firms that are not part of the recent government settlement over home foreclosure practices involving sloppy, inaccurate or forged documents.

Last week, a senior Federal Reserve official recommended fines for these additional financial institutions, raising questions about how deep foreclosure problems run through the banking industry.

In addition, judges, lawyers and advocates for homeowners say that people are still losing their homes despite improper documentation and other flaws in the foreclosure process often involving these firms.

The eight firms cited by the Federal Reserve — HSBC’s United States bank division, SunTrust Bank, MetLife, U.S. Bancorp, PNC Financial Services, EverBank, OneWest and Goldman Sachs — should be fined for “unsafe and unsound practices in their loan servicing and foreclosure processing,” Suzanne G. Killian, a senior associate director of the Federal Reserve’s Division of Consumer and Community Affairs, told lawmakers last month in a House Oversight Committee hearing in Brooklyn.

Read more: http://www.nytimes.com/2012/04/02/business/fed-targets-eight-more-firms-in-foreclosure-probe.html

[DJ13]

1. Is the Fed mad because they think they're corrupt

or is it because those institutions refused to go along with the sham settlement?

[banned from Kos]

2. Hey, more power to the homeowners, but this is why many reasonable people

In 2008, Ms. Stewart signed an assignment of mortgage — which gives the mortgage servicer the right to foreclose — to U.S. Bancorp, identifying herself as assistant secretary of Mortgage Electronic Registration Systems. Yet in 2009, Ms. Stewart signed a separate document in the lawsuit as vice president of U.S. Bancorp, court records show.

laugh at the notion of calling this "fraud". The NY Times does not use that term - to their credit.