This practice has accelerated during the current mortgage crisis. Financial institutions have been resolving these claims throughout the crisis. However, just as holders and guarantors of mortgages and mortgage-backed securities are pressing their claims, financial institutions are vigorously defending against many of the claims that seek to impose substantial liability on them.
We are gathering information to ensure that the institutions we supervise have adequately assessed these risks and have accounted for them properly. Risk to mortgage market and housing In addition to the potential harm to consumers, financial institutions and the financial system, the Federal Reserve is evaluating the potential macroeconomic effects of foreclosure documentation problems to the mortgage and housing markets.