After the robo-signing scandal that rocked the mortgage servicing world late last year, servicers maintained that even if they had not followed proper procedure when foreclosing on homes, all of the foreclosed properties had mortgages that were seriously delinquent.

The outrage sparked by the controversy showed that many people simply didn’t believe that was the case.

But results from the months-long probe into foreclosure documents by the Federal Reserve and other regulators revealed servicers were telling the truth.

According to the Huffington Post, the Fed revealed that the probe had found “no wrongful foreclosures” had taken place.

But, in a public meeting on Thursday, the news agency said consumer advocates argued the reason for finding no wrongful foreclosures was because the Federal Reserve had too narrow a definition of what constitutes a wrongful foreclosure.

According to the advocates, a wrongful foreclosure is one that could have been avoided but wasn’t, even if the borrower was delinquent. Other wrongful foreclosures could be ones in which the wrong party brought the foreclosure action or the paperwork had significant errors.

This news comes at an inconvenient time for regulators, who are trying to push costly changes in a settlement that serves as punishment for the robo-signing issues.

According to the Huffington Post, consumer advocates are worried that the public may only pay attention to the fact that there were no improper foreclosures found, without taking into consideration that the Fed did find substantial problems within banks’ foreclosure practices.

Add to that the recent statements by some attorneys general that they are not comfortable with some of the terms in the proposed servicer settlement, and it becomes increasingly clear that a lot more work is needed to come to a solution that works for all of the industry participants.

Acting Comptroller of the Currency John Walsh echoed that sentiment in a speech given at the American Bankers Association Government Relations Summit.

“Given the abuses we’ve seen, I believe that comprehensive, nationwide servicing standards are essential,” he said.

He continued, “Both the OCC and the Federal Reserve have developed draft servicing standards that we are now using as the basis for interagency discussions. Our goal is that they will apply to all mortgages, regardless of who services them, and they will be enforceable by the regulatory agencies.”