Federal Regulator Directs Seven Big Banks To Review Foreclosure Processes

The Washington Post reports:

• A top federal bank regulator said Thursday that he has directed seven of the nation's largest lenders to review their foreclosure processes after learning about the widespread mishandling of homeowner evictions by the industry.

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• The banks contacted by regulators include J.P. Morgan Chase, which announced Wednesday that it was freezing 56,000 foreclosures after finding errors in its preparation of documents, according to OCC spokesman Kevin Mukri. Other lenders contacted include Bank of America, Citibank, HSBC, PNC Bank, U.S. Bank and Wells Fargo.

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• The paperwork problems range from potentially forged documents to bank employees who never read borrowers' files before signing off on an eviction.

For more, see 7 major lenders ordered to review foreclosure procedures.