U.S. regulators preparing to sanction banks for foreclosure violations

Political Economy - U.S. regulators preparing to sanction banks for foreclosure violations: "U.S. regulators are preparing to sanction some of the 14 largest, federally regulated banks for 'critical deficiencies and shortcomings' in foreclosure procedures, Acting Comptroller of the Currency John Walsh testified on Thursday.

In remarks before the Senate Banking Committee, Walsh said that a multi-agency task force had concluded its examination of the banks and found violations of state and local foreclosures laws, regulations and rules.

The group identified a 'small number' of foreclosure sales that had gone through improperly, he said.

However, Walsh said investigators also found that the borrowers who were in foreclosure had seriously delinquent loans and that servicers had legal standing to foreclose.

He said that the federal government is finalizing sanctions and other remedial action that it is taking against the banks. It is discussing the actions with the 50 state attorneys general who are separately investigating claims of improper foreclosures."