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Bernanke Takes Blame for Delay in Foreclosure Reviews

Bernanke Takes Blame for Delay in Foreclosure Reviews

WASHINGTON — Federal Reserve Board Chairman Ben Bernanke accepted responsibility on behalf of regulators Wednesday for a troubled independent foreclosure review process that has delayed payments to borrowers for nearly two years.

Testifying before the House Financial Services Committee in his second day of congressional appearances to deliver the Fed’s semi-annual monetary policy report, Bernanke told lawmakers that regulators had made a mistake by requiring banks to hire consultants to review the largest servicers loan-by-loan.

“It was a very expensive cost per file evaluated,” said Bernanke. “We take responsibility for this. We were on a track where the money going to the consultants would be some multiple of the money going to the borrowers.”

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