U.S. Regulators Zero In on Loan Servicers to Fix Foreclosures

"U.S. mortgage servicers face a new era of tighter oversight as regulators seek to cut the number of botched foreclosures and increase loan modifications for struggling borrowers.

The industry, which oversees $10.6 trillion in loans, has been overwhelmed by more than 3 million foreclosures since 2006. The housing-market collapse exposed failures -- in the way servicers are paid, track loans and process property seizures -- that threaten to stall a fledgling rebound in prices and sales."