Bernanke: We Take Violations Seriously
Federal Reserve Chair Ben Bernanke announced Monday that the Fed would release preliminary findings in November from its investigation of lender and mortgage servicers’ processes.

“We take violations of proper procedures seriously,” Bernanke said in a presentation to a conference on mortgages and housing finance, hosted by the Fed and Federal Deposit Insurance Corp.

Bernanke also said in his previously released remarks: “More than 20 percent of borrowers owe more than their home is worth, and an additional 33 percent have equity cushions of 10 percent or less, putting them at risk should house prices decline much further. With housing markets still weak, high levels of mortgage distress may well persist for some time to come.”

Source: Bloomberg, Scott Lanman (10/25/2010)