On Tuesday one of the top officials of the Treasury Department stated that federal investigators while probing into the matter of mortgage foreclosures all across the United States have found extensive and "inexcusable" breakdowns regarding the basic controls of the procedure of foreclosures.

Assistant Treasury Secretary Michael Barr stated that the problems needed to be dealt with. He told that to the members of the Financial Stability Oversight Council, which is the panel of regulators, newly formed and responsible for pointing out potential risks to the financial system.

The widespread problems on foreclosure which has erred and fraudulent paperwork in it as well as improper and incomplete loan transfers came out in the open in the month of September, for the first time. It took place when large financial institutions like Ally Financial and Bank of America suddenly stopped their foreclosures.

With all those problems coming out on the surface, regulators and lawmakers have worried their heads off to gauge the depth of the problems and the potential fall out.

In this fall a federal foreclosure task force had been formed by officials that are composed of almost a dozen of agencies working in unison with the state attorneys general and several other banking regulators.

Barr further stated that on site examinations of the countries some of the largest mortgage services have been conducted by regulators

The exams have been designed in a manner to make sure that all the filed foreclosure complied with requirements and the affidavits filed by the firms in the court have accuracy.

The council has been informed by Barr that under the probe each of the service's foreclosure policies and procedures, vendor management, quality control, loan documentation, including custodial management, staffing and organizational structure and foreclosure processes have been assessed.