"For more than a year, housing advocates and their allies worried that a review of foreclosed loans managed by banking regulators was vulnerable to mortgage industry interference.
On Monday, the Office of the Comptroller of the Currency and the
Federal Reserve Board -- the two regulatory bodies that had taken the
lead in making the nation’s largest banks accountable for rampant
foreclosure fraud -- announced that homeowners no longer need worry
about the independence of the reviews. The regulators, essentially
admitting that the reviews were too difficult to conduct, and that
assigning appropriate compensation to those most harmed by the banks was
no longer a priority, said the mortgage companies themselves will
determine how to distribute $3.3 billion to more than 4 million
homeowners forced into foreclosure in 2009 or 2010.
Housing advocates, while acknowledging that the foreclosure reviews
were flawed, said they don't understand how turning the process over to
mortgage companies improves a system already insufficiently independent.
"The regulators have decided to replace the fox in the henhouse with
the wolf," said John Taylor, president of the National Community
Reinvestment Coalition, a Washington-based housing nonprofit. "It is
just incomprehensible to me that they could not find a third party that
has the wherewithal and independence to fairly determine what the damage
is to homeowners."
JOKE--place it back in the hands of the people that caused the whole mess