Yellen Says Lenders ‘Should Do More' on Foreclosures

The Federal Reserve's Janet Yellen said that lenders should do more when it comes to foreclosures, as mortgage lending "surged" in lower and moderate income neighborhoods. Yellen, who is speaking in Cleveland today, said that defaults are likely to be higher in these areas, as homeowners borrowed on "inappropriate" terms. Much of this was due to deceptive lending practices from the big mortgage servicers, such as J.P. Morgan JPM, Bank of America BAC and Citigroup C. Yellen said that the Federal Reserve is working to “prevent even more properties from entering foreclosure.”