Fed targets mortgage servicers, says must fix ‘deceptive’ practices http://t.co/vnjL6IcV via Wall Street Journal
By ERIC MORATH
WASHINGTON—Federal Reserve Gov. Sarah Bloom Raskin called upon mortgage servicers to fix their “sloppy and deceptive practices,” part of the Fed’s push for more forceful government action to fix the broken housing market.
It is important “that the severe misconduct that has been uncovered in the mortgage servicing sector be addressed through intensified public enforcement of the law as part of the overarching effort to rebuild our damaged communities and neighborhoods,” Ms. Raskin told a conference of the Association of American Law Schools.Problems with mortgage servicers, including forged promissory notes, erroneous fees and illegal foreclosure actions, hamper the ability of the courts and the markets to deal with the massive inventory of foreclosed homes, she said