Federal Reserve Faulted Over Foreclosure Accord in Watchdog’s Report

Not surprised by this. And I wouldn’t be surprised if Senator Warren ask for hearing with Yellen…

The Federal Reserve must take steps to improve handling of complex settlements like the one reached with mortgage servicers over improper foreclosures, an internal watchdog said in a report.

Lax preparation and management led to poor execution of 2013 accords with 13 companies including (BAC:US)Bank of America Corp. (BAC:US) and JPMorgan Chase & Co. that were meant to compensate borrowers who were harmed, according to the report released today by the Fed’s Office of Inspector General.

“The board was responsible for overseeing the corrective action at an individual-borrower level for more than 4 million borrowers on an interagency basis,” according to the report. “Nevertheless, the board engaged in limited planning activities for this unprecedented enforcement strategy.”

Read on.

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