The Government Accountability Office (GAO) drafted a report faulting U.S. bank regulators for a flawed review of foreclosure documents, saying that the agencies did not establish consistent procedures or adequately monitor the consulting firms performing the work, the Wall Street Journal reported today. The GAO's report criticized the Office of the Comptroller of the Currency and Federal Reserve for not ensuring banks were using consistent methods to determine which foreclosure files to scrutinize for possible errors. The regulators ordered an independent review of banks' foreclosure files in April 2011 to determine how many borrowers should be compensated for foreclosure-processing and other mistakes. Earlier this year, the regulators reached a $9.3 billion settlement with banks, saying that the review threatened to drag on into 2014, delaying compensation to borrowers. So far, 13 of 16 banks have signed the agreement.
