Robo-signing settlement in the works

Resolution could clear way for more bank repos, foreclosure sales

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Federal regulators looking into so-called "robo-signing" practices by mortgage loan servicers found "critical deficiencies and shortcomings" in procedures that in some cases violated state and local laws and regulations, but uncovered only a small number of foreclosure sales that shouldn’t have gone through.

The Office of the Comptroller of the Currency and other federal banking agencies are in the process of finalizing sanctions against loan servicers, the OCC’s Acting Director John Walsh said in Congressional testimony this week.