Federal regulators to launch review of foreclosure cases

Oct.October 04, 2011 12:56 PM

Millions of current and former homeowners nationwide may have their foreclosure cases re-examined as part of a review being planned by federal regulators and slated to be announced in the next few weeks, the Wall Street Journal reported. The review is to determine whether homeowners were victims of mistakes by the banks.

The process will be open to borrowers who were in some stage of foreclosure in 2009 or 2010, the Journal said, meaning that approximately 4.5 million borrowers could be eligible.

John Walsh, acting head of the Office of the Comptroller of the Currency, said the agency was exploring “the best means of ensuring that injured homeowners had the opportunity to seek relief,” when they were harmed by lender improprieties.

Lenders may be in for a world of pain, some experts said, depending on the outcome of the reviews.

“It’s a substantial undertaking at great expense to the banks,” said Tim Rood, a partner at Collingwood Group, a housing finance consulting firm. [WSJ]

Related Articles

Commercial losses top banks’ 2010 concerns

Commercial losses top banks’ 2010 concerns

Commercial real estate worst part of economy, survey finds

Commercial real estate worst part of economy, survey finds

Placeholder image

Payment problems often remain after loan help

Daily Digest Miami

Ten-X Commercial laid off half of its workforce, Miami professor who taught class on money laundering allegedly laundered millions

Mall at Wellington Green Barry Sternlicht (Credit: Google Maps)

CMBS loan for Starwood’s Mall at Wellington Green is in trouble

Rendering of The Markers Grove Isle

Grove Isle developers face new lawsuit over proposed project

Ambassador Hotel Cooperative Apartments (Credit: iStock)

Copperline Partners closes on bulk co-op deal in Palm Beach

 4601 Le Jeune Road, Jose Boschetti and Maurice Boschetti

Gables Residential sells dev site near Shops at Merrick Park