Monday, March 4, 2013

Hmm, tougher stance?

"Big banks discovered they wrongfully foreclosed on more than 700 military members during the housing crisis and seized homes from about two dozen other borrowers who were current on their mortgage payments, Jessica Silver-Greenberg and Ben Protess report in The New York Times. The banks — Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — found the foreclosures after regulators ordered them to examine mortgages as part of a multibillion-dollar federal settlement, according to people with direct knowledge of the findings.

“The analysis, which was turned over to regulators in recent days, provides the first detailed glimpse into the extent of wrongful foreclosures amid the collapse of the housing market,” Ms. Silver-Greenberg and Mr. Protess write. “While lenders previously acknowledged that they relied on faulty documents to push through foreclosures, the banks claimed borrowers were rarely evicted by mistake, including military personnel protected by federal law.” The new revelations “could provide fresh ammunition for Wall Street critics and prompt regulators to adopt a tougher stance.”

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