Ms. Silver-Greenberg, in her article entitled “As Foreclosure Problems Persist, Fed Seeks More Fines”, noted three key points, 1) the Federal Reserve is interceding with regards to the foreclosure dilemma, 2) there are flaws in the foreclosure process and 3) consumer’s may quality to request an “Independent Foreclosure Review”.

Ms. Silver-Greenberg states the Fed is interceding in the foreclosure dilemma. After an extensive investigation, extending over 2 years according to Silver-Greenberg, by the Federal Reserve resulted in a report entitled “ Interagency Review of Foreclosure Policies and Practices” (2011). The Fed’s have imposed a guideline for the mortgage institutions to follow and if they choose not to, there are talks of imposing stiff fines. The actions of these lenders have affected not only the borrowers, but also the mortgage industry, investors, and the economy itself. I feel that it is a shame lenders were able to get away with their procedural defects as long as they were. This resulted in more consumers being affected and as an end result exacerbated the decline in the economy.

According to not only Ms. Silver-Greenberg, but also the report submitted by the Federal Reserve, (2011), there are flaws in the foreclosure process. These flaws are not only inappropriate signatures of bank officials, but also issues with organization of paperwork, customer service, lack of quality control, just to name a few. After reviewing this report, which until now I did not even know existed, I was quite shocked. The testimonies included in the article along with the findings of the Fed are horrific. Maybe with the implementation of potent fines, the banks will hopefully proceed they way they should.

Finally, Ms. Silver-Greenberg indicates that consumers may qualify for an “Independent Foreclosure Review” (2012). According to The Board of Governors of the Federal Reserve System, there is no cost for this review and the consumer might even be entitled to compensation. The deadline for submission of a consumer’s request was recently extended to July 31, 2012. I know people who are going through foreclosures and after contacting them regarding the possibility of a review, none of them had even heard of this. I feel that it is a great thing being provided to consumers, but if they have no knowledge that it is available, what good does that do.

As I mentioned, I am glad to see the Fed stepping in to rectify this pathetic situation, but I wonder if it is too little too late. Lenders that are not conforming are affecting our economy and consumers increasingly with every passing day. Some lenders even appear to be very lackadaisical in their corrective measures. Since the Fed has significant power, I think they should start using it more aggressively.

Silver-Greenberg, J. (2012, 04 01). As foreclosure problems persist, fed seeks more fines. Retrieved from http://www.nytimes.com/2012/04/02/business/fed-targets-eight-more-firms-in-foreclosure-probe.html?_r=1&sq=foreclosure inquiry by federal reserve&st=cse&scp=1&pagewanted=print

(2011). Retrieved from Federal Reserve website: http://www.federalreserve.gov/boarddocs/rptcongress/interagency_review_foreclosures_20110413.pdf

(2012). Retrieved from Federal Reserve website: http://www.federalreserve.gov/consumerinfo/independent-foreclosure-review.htm

U.s. banks, fed settle on foreclosure fines. (2012, February 10). Retrieved from http://www.reuters.com/article/2012/02/10/us-financial-regulation-fed-idUSTRE8181RN20120210