Friday, November 26, 2010

Obama administration faults lenders in foreclosures -

Obama administration faults lenders in foreclosures - "WASHINGTON | An Obama administration official says a preliminary investigation into the foreclosure process has found inexcusable breakdowns in the basic controls that mortgage lenders should have been using.

Assistant Treasury Secretary Michael Barr on Tuesday told a new financial stability council led by Treasury Secretary Timothy Geithner that a task force composed of 11 federal agencies hoped to have a set of recommended improvements ready by late January.

Barr said the goal of the task force was to hold banks accountable for fixing the problems that had been found and making sure that people who had been harmed had a way to seek redress.

Barr said the investigation had found “widespread and, in our judgment, inexcusable breakdowns in basic controls. The problems must be fixed.”

Barr delivered his comments before the Financial Stability Oversight Council. The group of top federal officials, which includes Federal Reserve Chairman Ben Bernanke, was holding its second meeting."

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