Banks Will Be Fined Due To Foreclosure Problems Says Fed

by San Antonio Attorney

The federal regulators have charged the largest banks in the U.S. with “unsafe and unsound practices” on home foreclosures, and also required them to overhaul their mortgage procedures.

So far, the action is the most rigorous response of the regulators to the extensive misconduct of the banking companies in the past five years of mortgage meltdown. It takes place after months of reviewing by the federal authorities with the way the banks handled the paperwork of mortgage and foreclosure measures.

However, the regulators did not disclose the amount of the fines.

Enforcement actions due to wrong practices related to mortgage were filed against Wells Fargo, JP Morgan Chase, Citigroup, Bank of America, and 10 other banks. The banking companies conformed to the orders but did not imply acceptance or denial of the responsibility.

According to the Federal reserve, imposing fines is appropriate in this particular case.

In addition, the enforcement actions are made in order to deal with a trend of wrong doings as well as negligence involving bad practices in servicing home mortgage loans and controlling foreclosure. The banks have failed to comply with the safe and sound practices.

The enforcement actions is a response to the banks’ struggle over the regulators’ possible reaction to their alleged misconduct. A number of state attorneys general are pressing that the banks have to compensate $20 billion in order to provide assistance to the victims of foreclosure and make amends for previous misconduct. However, the regulators are separated on the matter, unwilling to add more financial pressures on the banking companies as the state of economy is still unstable.

JP Morgan Chase said that the expenses on the mortgage problems have already cost the company $2 billion, and he cautioned that it will rise in the coming months due to the fines that will be sanctioned.

If you have been a victim of abusive practices of these major commercial banks then seek help from an attorney right away.  Also for more news info click on our San Antonio Attorney section.

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