Issues with Processing of Foreclosure Homes May Result in Penalties Business Articles | December 16 Cheap Walter Brown Jersey , 2010 The controversy surrounding U.S. lenders' processing of foreclosure homes may result in penalties. Reports reveal that regulators will seek restitution starting January.
U.S. bank industry regulators are reportedly keen on imposing criminal fines and penalties as early as January 2011 in relation to alleged anomalies in lenders? processing of foreclosure homes. According to reports, the results of regulators? investigations may serve as basis for any prosecution that will be pursued and for changes in mortgage servicing standards.
According to regulators of the bank industry, there have been inconsistencies and breakdowns discovered in lenders? methods of documentation Cheap Robert Parish Jersey , and these will be considered in making the decision on whether to prosecute or not. Legislators have earlier criticized banking industry regulators for allegedly failing to properly monitor the mortgage industry.
The issue escalated into an almost countrywide moratorium on foreclosure sales after news emerged that lenders and mortgage servicers are rushing foreclosure cases through the courts by using robo-signers or employees who sign off on documents without knowledge of their pertinent facts. Regulators have stated that they received no warning about the problem and only heard about it later from the press.
The questionable documentation practices of lenders made the housing market problem worse, according to analysts. The huge supplies of foreclosure homes have already depressed the market, and the controversy made it even worse Cheap Al Horford Jersey , especially for housing markets hit hardest by the foreclosure crisis, analysts have added. They also mentioned the failure of federal government-supported programs to alleviate the housing crisis as a further aggravation.
During congressional hearings held to address housing market problems, lawyers have argued that the errors committed by lenders and banks have harmed U.S. homeowners. They also blamed the complex process of mortgage securitization Cheap Gordon Hayward Jersey , citing cases when multiple foreclosure lawsuits have been filed against a homeowner by several firms claiming ownership of the mortgage.
Meanwhile, industry observers have stated that lack of proper monitoring is the primary reason behind the process breakdown. According to them, the huge number of cases being pushed through the courts should have warned regulators about that amount of cases Cheap Larry Bird Jersey , which cannot be processed that fast if attention to detail is being exercised. Others have also mentioned the role of judges presiding over foreclosure homes cases, arguing that they should not have accepted every submission without question as most of them allegedly did.
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