Banks, regulators act to correct foreclosure flaws

More foreclosure-gate news and updates.

The agreements are the result of a review of bank practices begun last year by the nation's biggest bank enforcers — the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Federal Reserve and the Federal Deposit Insurance Corp. "The review uncovered unsafe and unsound practices, violations of law and foreclosure processes geared toward speed and quantity, instead of quality and accuracy," the OTS said in a statement.

John Walsh, acting comptroller of the currency, said in a separate statement that the enforcement actions announced by the agencies would go far in correcting foreclosure errors.

"These comprehensive enforcement actions, coordinated among the federal banking regulators, require major reforms in mortgage servicing operations," Walsh said. "These reforms will not only fix the problems we found in foreclosure processing, but will also correct failures in governance and the loan-modification process and address financial harm to borrowers."

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