Wednesday, December 15, 2010

Bank regulators examine foreclosure files

WASHINGTON (MarketWatch) — In the wake of revelations about foreclosure-documentation errors at big banks, regulators are reviewing files in response to concerns that mortgage-servers are improperly racing documents through the foreclosure process, a senior government official disclosed Tuesday.


“In reviewing these files, examiners are checking for a documented audit trail that demonstrates that data and information in foreclosure affidavits and claims are accurate and comply with state laws,” John Walsh, the acting Comptroller of the Currency, wrote in a letter to Democratic lawmakers that was obtained by MarketWatch.

Contractual obligations

Rep. Brad Miller of North Carolina and nine fellow House Democrats had written to Walsh, urging that regulators review files to ensure the documents satisfy contractual representations and warranties for the mortgages in question.

“Since this mortgage mess has blown up, it has been unclear to me whether they are looking at these issues,” Miller said in an interview. “It sounds like they are now looking at the right things.”


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