Federal Housing Administration Commissioner David Stevens on Tuesday said the agency is joining other regulators by sending review teams into servicers.
He said the review follows a previous look over the last few months at servicer practices on the front end where the FHA found "variable quality in terms of how they were performing for their loss mitigation requirements."
"Because of the most recent issues we need to make certain at the FHA that loans that are being foreclosed on and that the process is being done correctly so we will be going back into many of our servicers and looking at particularly their foreclosure process that has come up as of late, trying to make sure they have the processes in place that we would expect," Stevens said.
He said the FHA is coordinating with other regulators who are also investigating the problems. The state attorney generals have launched an investigation and the federal banking regulators are also reviewing service practices.
He said regulators will announce in the "near term" steps that need to be taken to address the foreclosure problems.
