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 firms, 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.
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