The Real Deal Miami

Fed says ramifications of foreclosure crisis remain uncertain

October 19, 2010 02:00PM

In light of the robo-signing foreclosure crisis, the Federal Reserve is working with other agencies to review practices and is actively encouraging efforts to find viable alternatives to foreclosure, according to Bill Dudley, president of the Federal Reserve. “Foreclosure is a necessary part of the housing market returning to normal conditions, but the extent of the documentation problem and its economic ramifications remain uncertain,” CNBC’s Steve Liesman said in the video above, recapping Dudley’s remarks. According to Liesman, Dudley also said that the economic situation is “wholly unsatisfactory.” Homeowners can expect increased mortgage refinancing to continue over the near term, while the housing situation will remain uncertain for the foreseeable future, Liesman said.