For those who took umbrage with my last post regarding the lack of attention paid to Main Street by the Obama administration, I would point you to the front page of Friday’s New York Times. In her piece, “Bank Deal Ends Flawed Reviews of Foreclosures,” Jessica Silver-Greenberg details the disastrous federal review of the destructive foreclosure process used by the big banks against homeowners.
The entire review process, as dictated by the OCC and Federal Reserve, was a disaster waiting to happen. Weaknesses included high fees to the auditors for no actual work performed, the reviewers clearly favoring the banks paying for their efforts, low-level, inexperienced personnel reviewing the documents, and even ignoring homeowners who were supposed to be able to bring their cases to the regulators attention. Complex rules were set out, followed up by a lack of oversight by the feds.
Rather than face the continued embarrassment of the failed audit process and face proof that homeowners were once again being left to hang out to dry, the regulators hastily came up with a settlement whose main beneficiaries were the big mortgage banks.
Read the link below to see how the big banks were let off the hook for their bad behavior in return for miniscule fines: