(Reuters) - U.S. banking regulators will issue a report
next month on foreclosure practices at large financial
institutions, following allegations that lenders cut corners
to illegally evict homeowners, Federal Reserve Chairman Ben
Bernanke said on Monday.
The review, which follows probes by all 50 state
attorneys general and the Justice Department, adds further
pressure to banks besieged by accusations that they failed
to review foreclosure documents properly or submitted false
statements when they foreclosed on properties.
"We have been concerned about reported irregularities in
foreclosure practices at a number of large financial
institutions," Bernanke said in opening remarks to a
conference sponsored by the Fed and the Federal Deposit
Insurance Corp.
"We anticipate preliminary results of the review next
month," he said. "We take violations of proper procedures
seriously."
The controversy, which has drawn public outrage, has
raised fears about bank earnings and the health of a fragile
housing market, which has been battered by falling
prices and foreclosures of nearly 3 million homes since
January 2007.
Bernanke said Fed staff were in the process of evaluating
these effects.
Evidence of impropriety triggered foreclosure moratoriums
by some of the biggest U.S. lenders, though Bank of America
and GMAC Mortgage have since retreated from these
suspensions.