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WASHINGTON, Oct 20 (Reuters) - U.S. Housing and Urban Development Secretary Shaun Donovan said on Wednesday the government will follow up “vigilantly” to correct foreclosure paperwork irregularities and make affected homeowners “whole.”
“We will follow up vigilantly on the noncompliance, the potential noncompliance, that we have found and I want to be clear that we will demand that servicers take actions as required by FHA to do everything they can to keep borrowers in their homes,” Donovan told a news conference at the White House.
He said the probe had found no evidence of a systemic underlying foreclosure paperwork problem.
“We have not found any evidence at this point of systemic issues in the underlying legal or other documents that have been reviewed. That is clearly as of this date, to date, in terms of the reviews that we have done,” Donovan said.
He said some servicers have followed the rules and others have not.
“The performance across servicers is very different and so we are finding compliance, significant compliance, with a number of servicers while others appear not to have met their obligations to borrowers or to the FHA,” he said.
“I think it’s an important point that we ensure that we are not looking at this as a single picture, but that we focus on the institutions that have made mistakes, where there have been mistakes made or errors, we will hold those entities, those institutions accountable to stop those processes and review them and fix them as quickly as possible,” he said.
He said that would be the focus of the administration’s coordinated effort,” which included his meeting on Wednesday with Treasury Secretary Timothy Geithner and 11 different entities and agencies (Reporting by Patricia Zengerle, Editing by Jackie Frank)
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