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Obama Administration Asks Banks to Regulate Their Own Foreclosure Abuses

By Noel Brinkerhoff and David Wallechinsky | AllGov | February 15, 2013

Having bungled the so-called independent review of foreclosure mistakes, the Obama administration has now decided that the best way to help homeowners is to have the banks—which were responsible for the foreclosure errors—examine the case files and decide how best to fix the situation.

In January, the Office of the Comptroller of the Currency (OCC) shut down the foreclosure review by independent consultants—which had already cost about $2 billion— after it was revealed that the banks had selected said consultants. The process also proved to be taking too long to resolve homeowner grievances, so the administration decided to reach a $3.6 billion settlement with the banks.

But before the money can be distributed to individuals wronged during the foreclosure crisis, more than four million cases need to be reviewed. Instead of federal regulators doing the work, they are trusting the financial institutions, including Bank of America and Wells Fargo, to do it properly this time.

Housing advocates, not surprisingly, are worried the banks will shortchange homeowners while they scrutinize their earlier mistakes. “The whole process has been a slap in the face to homeowners and a slap on the wrist to banks,” Isaac Simon Hodes, an organizer with Massachusetts-based Lynn United for Change, told The New York Times. “The latest development shows how there has been no accountability.”

The OCC has promised to check the bank’s work to ensure things go right this time.

February 15, 2013 - Posted by | "Hope and Change", Corruption, Economics | , , , , , , ,

3 Comments »

  1. Too Big to obey the law, be audited, but not to donate looted funds to the political protection racket that is all the Obama administration is ideological willing to do. No wonder they are out to disarm the public; they have taken their homes, retirement funds, and if people submit, their Constitutional Rights too.

    Add this outrage to the list of Charges and Specifications for Obama’s impeachment! This is the most despicable cabal of criminals I have living memory of in power in Washington, D.C..

    War Criminals, thieves, liars, usurpers, and enemies of the US Constitution. And the democrats click their heels, kiss his ass, eat shit and smile at us with it all over their faces!

    Comment by Bill Mitchell | February 15, 2013 | Reply

    • The Obama supporting Democrats are far more despicable than the Bush supporting Republicans and their rationales for supporting the regime are loonier as well.

      Comment by aletho | February 15, 2013 | Reply

  2. This should go well.

    Comment by Jeff Nguyen | February 15, 2013 | Reply


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