NEW YORK – Problems from the housing bubble remain, Federal Reserve Board Governor Daniel Tarullo told the Senate Committee on Banking, Housing, and Urban Affairs Wednesday.
“I regret to say that the hangover from the housing bubble of this past decade is still very much with us, as revealed both in the inadequate capacity of mortgage servicers and the continued impact of foreclosed homes on the housing market,” Tarullo testified, according to prepared text of his presentation, which was released by the Fed. “While bank regulatory agencies can and should respond to specific failings that are being identified in our interagency examination, there is a strong case to be made that broader solutions are needed both to address structural problems in the mortgage servicing industry and to accelerate the pace of mortgage modifications or other loss mitigation efforts.”
