SEC Discussing Foreclosures With Other Regulators, Chairman Schapiro Says
U.S. Securities and Exchange Commission Chairman Mary Schapiro said her agency is discussing lenders’ handling of foreclosure documents with other regulators and making sure firms made adequate disclosures to investors.
“Whenever there are suggestions that there may have been any kinds of issues with respect to disclosure, misrepresentations or omissions, we are always looking at that kind of conduct,” Schapiro told reporters today after a speech in Washington.
Banks including Bank of America Corp. temporarily halted foreclosures this month amid concern that faulty documents may have been used to seize homes. Attorneys general of all 50 states have opened a joint investigation into foreclosures, saying they will seek an immediate halt to any improper practices at mortgage lenders and loan servicers.
The SEC reviews corporate filings to ensure companies are disclosing their true financial health to shareholders. The agency also examines documents involved in securities sales to make sure risks are revealed to investors. The SEC doesn’t regulate mortgage lending.
“All the regulators are obviously talking to each other because there are different pieces here and different areas of expertise and responsibility,” Schapiro said.
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