A review of mortgage-servicing practices by U.S. regulators found serious problems with internal controls and staffing levels at 14 companies, including Wells Fargo & Co., which could lead to formal enforcement action, The Wall Street Journal reported.

Wells Fargo, Bank of America Corp., JPMorgan Chase & Co. and 11 other home-loan servicers have been investigated since last fall regarding breakdowns in procedures for payment collection, loan modifications and foreclosures. The resulting penalties could include fines and changes in how the companies operate, sources told the Journal.

John Walsh, acting head of the Office of the Comptroller of the Currency, said the probe found “critical deficiencies and shortcomings” in document procedures, oversight of outside law firms and other areas.

Iowa Attorney General Tom Miller, who is heading the multistate investigation, said in a prepared statement that states are working with federal agencies to reach a coordinated settlement. Miller added that many of the bank practices under review are violations of state laws and that states “intend to fully pursue all state claims and remedies” regardless of federal action.

Wells Fargo, JPMorgan and Bank of America declined to comment.

A review of 2,800 foreclosures also uncovered a small number of wrongful sales, Walsh said.