Flawed paperwork morass could hurt banks, housing market, a report says

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Flawed paperwork morass could hurt banks, housing market, a report says

Dayton Daily News – If bankers wanted to put the controversy over flawed foreclosure paperwork behind them, events last week dashed those hopes.

More than a month after allegations of flawed affidavits led some major lenders to temporarily halt foreclosures, the issue returned to the forefront. Bankers called to testify before two congressional panels assured lawmakers they were ironing out the problems and trying to keep people in their homes. At the same time, a report by the Congressional Oversight Panel, a watchdog group, warned that fallout from these practices could threaten banks with billions of dollars in losses, hurt government efforts to keep people in their homes and worsen the nation’s housing market.

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