New Foreclosure RulesFederal banking regulators are ordering 14 mortgage lenders and servicers to revamp their foreclosure practices and even reimburse homeowners who were incorrectly foreclosed upon. The banks involved in the order include the nation's largest: Bank of America, JP Morgan Chase, Citigroup and Wells Fargo. Government officials concluded that banks often seized homes after filing improper paperwork and were woefully under-staffed to handle the surge in homeowners defaulting on their mortgage payments. In the four years since the housing bubble burst, five million homes have been foreclosed upon.
