We mean business
Comprehensive legal services for businesses
in New Jersey and New York
Best Lawyers | Best Law Firms | U.S.News & world report | 2021
Richard J. Lambert was named by Best Lawyers® as a 2021 Corporate Law “Lawyer of the Year.”

Best Lawyers® is the oldest and most respected peer-review publication in the legal profession. Only one lawyer in each practice area in a given community is honored as “Lawyer of the Year.”

comprehensive legal services for businesses

Federal Regulators to Investigate Lenders’ Foreclosure Practices

Last week, some of the nation’s largest lenders, such as Bank of America and Ally Financial (formerly GMAC), resumed processing foreclosures after a temporary moratorium to redo, recheck and resubmit some paperwork. The banks have asserted that, despite some possibly faulty paperwork, they have so far found no homes that were foreclosed upon in error and feel confident to move forward.

Federal banking regulators, however, have decided to open an investigation into lenders’ foreclosure practices. On Monday, Federal Reserve Chairman Ben S. Bernanke said that investigators are looking into whether there exist “systematic weaknesses” that are resulting in “improper foreclosures.”

Bernanke said that some preliminary results should be available next month. According to the Los Angeles Times, federal banking regulators are also trying to determine if and how the issues with incomplete or sloppy paperwork by lenders will end up affecting banks and the housing market.

Agencies investigating banks’ foreclosure practices include the Department of Housing and Urban Development, the Treasury Department and the Justice Department. Attorneys general in all 50 states have also opened a joint investigation to find out the extent of the errors in foreclosure documents and whether any homes were improperly foreclosed on or whether there is any evidence of fraud.

According to the Los Angeles Times, even as the federal officials have opened their investigations, most agree that banks should continue with foreclosure processing rather than extend the moratorium. The federal regulators believe that an extended moratorium would further hurt an already weak housing market.


Bernanke says banking regulators are investigating foreclosure practices (Los Angeles Times)

Office Location

Dunn Lambert, LLC
1740 Broadway, 15th Floor
New York, NY 10019

Paramus Law Office Map

Dunn Lambert, LLC

New York Law Office Map

Phone: 551-228-2690
Fax: 201-957-0874

Best Lawyers | Best Law Firms | U.S.News & world report | 2021

GET ANSWERS from a firm
with a sense of business.


Review US
FindLaw Network