Friday, January 4, 2013

Hundreds of millions

"Banks are hashing out a $10-billion settlement with federal regulators to halt costly reviews intended to compensate borrowers whose foreclosures were marred by legal shortcuts, lost paperwork and improper fees.

The reviews — conducted by highly paid consultants hired by the banks themselves — have so far failed to deliver any meaningful assistance to homeowners. The failure has been long predicted by critics, including Sheila Bair, former chairwoman of the Federal Deposit Insurance Corp.

"Zero dollars have been given out," complained Faith Bautista, president of the National Asian American Coalition.

The reviews began in November 2011. So few borrowers asked for a foreclosure review that the regulators extended the deadline to apply three times before it expired Dec. 31. But as the new year approached, the reviews had not yet reached the stage at which any compensation could be delivered to aggrieved borrowers, said Bryan Hubbard, a spokesman for the Office of the Comptroller of the Currency.

Meanwhile, the banks have paid the consultants hundreds of millions of dollars, Joe Evers, the OCC's deputy comptroller for large banks, said in a recent conference call with reporters."

All the settlement/review funds have not helped the homeowners--how sad.

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