Last week U.S. regulators penalized fourteen of the country's biggest banks for improper foreclosure practices, according to a recent Wall Street Journal article. The banks were ordered to revamp their methods for handling troubled borrowers.
While no fines were issued, officials say they are coming to the 14 banks. This regulatory action occurred "as Obama administration officials and representatives of state attorneys general met with the bank representatives in an ongoing effort to reach a broader deal over alleged mortgage-servicing abuses, which brought foreclosures to a near halt last fall."
This action would not interfere with possible civil fines and settlements. The banks have 60 days under the order to clean up their system, preventing documentation errors and ensuring they have the proper staff to handle home foreclosures, along with other changes.
In addition, an independent consultant must review the foreclosures from 2009 and 2010 to ensure fairness.
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