The Federal Reserve Board announced this week it would conduct a porbe into irregularities among foreclosure practices.

According to Federal Reserve Chairman Ben Bernanke, the decision to investigate the irregularities was spurred by a concern among banking regulators. "We are looking intensively at the firms' policies, procedures, and interntal controls related to foreclosures," Bernanke said. "[We are] seeking to determine whether systematic weaknesses are leading to improper foreclosures."

The Federal Reserve Board will examine the effects of mortgage paperwork irregularties by financial institutions, as well as their effect on the greater real estate market. The Department of Housing and Urban Develpment, along with the Justice Department and the Treasury Department are also investigating the foreclosure process.

There is no indication on whether the Federal Reserve Board's probe will affect proposed foreclosure moratoriums.

If you are facing foreclosure, please contact a Maryland mortgage modification lawyer of Chaifetz & Coyle, P.C., by calling 443-546-4608.