Regulator Orders More Banks To Examine Foreclosure Practices

U.S. banks that have not already started reviews of how they handle foreclosures must now do so and compensate any homeowners who have been harmed, a federal regulator said Thursday.

The order by the Office of the Comptroller of the Currency, which regulates national banks, applies to institutions outside the 14 major banks and thrifts that regulators have ordered to overhaul their foreclosure practices. The bank regulator, along with the Federal Reserve and Office of Thrift Supervision, found in April that the banks filed foreclosures with improper documentation and lacked sufficient staff to properly handle distressed borrowers.

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