Although foreclosure practices have traditionally been – and rightfully should remain – a domain of the states, the Federal Reserve has been expanding its expertise in working with the industry – first, in a review of non-bank subsidiaries in conjunction with other state and federal regulators, and, currently, with a review of loan modification practices by certain servicers.
The first round of consultation, in the middle of this calendar year, will take stock of the structural changes that have affected the context for monetary policy, and reflect on the lessons from the operation of monetary policy in recent history.