Officials reviewing foreclosures

U.S. banking regulators will issue a report next month on foreclosure practices at large financial institutions, following allegations that lenders cut corners to illegally evict homeowners, Federal Reserve Chairman Ben Bernanke said yesterday.

WASHINGTON – U.S. banking regulators will issue a report next month on foreclosure practices at large financial institutions, following allegations that lenders cut corners to illegally evict homeowners, Federal Reserve Chairman Ben Bernanke said yesterday.

The review, which follows probes by all 50 state attorneys general and the Justice Department, adds further pressure to banks besieged by accusations that they failed to review foreclosure docu­ments properly or submitted false statements when they foreclosed on properties.

The controversy has raised fears about bank earnings and the health of a fragile housing market.

 
 
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