Fed seeks uniformity on foreclosure practices

7/8/2011

WASHINGTON — The Federal Reserve said Thursday it wants to see a uniform set of national standards developed for mortgage servicing companies and for handling foreclosures to avoid abuses of consumers.

In a statement filed with two House financial services subcommittees, the Fed said it also was staying in close touch with the Justice Department on negotiations with five big banks that are trying to settle over deficiencies in mortgage servicing and foreclosure practices.

Federal regulators and state attorneys general have been investigating bank mortgage and foreclosure practices that came to light last year, including the use of “robo-signers” to sign hundreds of unread foreclosure documents a day.