U.S. banks need to get ready to face more scrutiny from federal regulators on their foreclosure practices.
Fed chief Ben Bernanke announced the crackdown at a housing conference yesterday in Arlington, Virginia. Bernanke said both the Federal Reserve and the Federal Deposit Insurance Corporation, quote, “take violations of proper procedures seriously.” Some banks are accused of using “robo-signers” to sign off on hundreds of documents daily without properly reviewing the paperwork. Several states have complained that the practice could amount to fraud.
KXNT Morning News spoke with Editor-At-Large Jill Schlesinger from CBS MoneyWatch.com to learn more.