Review of Foreclosure Mistakes Is Set

Millions of current and former homeowners will have a chance to get their foreclosure cases examined to determine whether they should be compensated for banks’ mistakes, under a wide-ranging review being planned by federal regulators.  The review process will be open to borrowers who were in some stage of foreclosure in 2009 or 2010.  4.5 million borrowers could be eligible for review. Borrowers who are determined to have suffered “financial injury” could be eligible for compensation that would be determined on a case-by-case basis by the third-party firms.  However, few if any borrowers are expected to have foreclosures overturned.

Wall Street Journal   October 4, 2011