Fed Chief Announces Greater Foreclosure Scrutiny

10.25.10 | FL News Team

(Arlington, VA)  --  Fed chief Ben Bernanke says regulators are taking a closer look at how banks conduct their foreclosures.  Bloomberg News reports that Bernanke announced the crackdown at a housing conference in Arlington, Virginia today.  Bernanke said both the Federal Reserve and the Federal Deposit Insurance Corporation "take violations of proper procedures seriously."

The move follows the temporary halt to foreclosures by Bank of America and JPMorgan Chase.  Some banks are accused of using "robo-signers" to sign off on hundreds of documents daily without properly reviewing the paperwork.  Several states have complained that the practice could amount to fraud.