Bair Says Regulators Will Uncover More Flaws in Foreclosures
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Regulators are likely to discover more problems related to loan servicing by some of the biggest banks as they probe claims that documents were mishandled, Federal Deposit Insurance Corp. Chairman Sheila Bair said.
“We are going to get into more and more problems with the issues that are surfacing now on servicing,” Bair said today at a housing conference in Arlington, Virginia. Resulting litigation could “ultimately be very damaging to our housing markets if it ends up prolonging those foreclosures that are necessary and justified,” she said. Bair didn’t provide details on what other problems she thought might arise.