Comptroller of the Currency Orders National Banks to Cover Up Foreclosure Scandal

Comptroller of the Currency Orders National Banks to Cover Up Foreclosure Scandal

Acting head John Walsh is standing in the way of information that could help desperate homeowners. **You can follow Matt Stoller on Twitter at

I was rereading some testimony by Mark Kaufman, the Maryland Commissioner of Financial Regulation, on mortgage servicer behavior. He testified this month before the House Oversight Committee on something quite scandalous.

Together with banking commissioners in four other states, our Office of Financial Regulation joined twelve state Attorneys General in the State Foreclosure Prevention Working Group launched under the leadership of Iowa Attorney General Tom Miller in 2007. This group sought to work collaboratively with the mortgage servicing industry and other parties to identify solutions to the myriad of problems we were seeing in addressing the crisis. The group gathered data submitted voluntarily from the largest subprime servicers and published five reports during 2008 to 2010 providing analysis on foreclosure issues and the servicing response. Unfortunately, this data and the related dialogue fell short of its potential as the Office of the Comptroller of the Currency forbade national banks from providing loss mitigation data to the states.

Subprime servicers were willing to hand over data. But national banks were ordered not to provide data on loss mitigation to investigators. It gets worse. Kaufman notes that in Maryland, loan modifications often led to homeowners paying a higher monthly amount after getting their loan modified. When a homeowner asked for help, they got a higher bill. In essence, this is the financial equivalent of having the fire department try to put out a blazing inferno with gasoline.

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6 Responses to “Comptroller of the Currency Orders National Banks to Cover Up Foreclosure Scandal”
  1. Peggy Johnson says:

    I have already stated that John Walsh and the OCC should be sued by the US Department of Justice under the Federal Bank Fraud Statute for failure to provide the “INTANGIBLE RIGHT TO HONEST SERVICES”. But then that would be too much like doing the right thing by the people in favor of those who are being supported by the lawless beast banks. Just face it, homeowners are being sold down the river. This on-going sable ratteling with the banks is hypocrisy in its rawest form – In a word – Horseshit. – And what’s in your Nescafe?

  2. Mr Walsh is working for his future next Job at a mayor bank. end of story

  3. kravitz says:

    Walsh is a pension grabber. He’s not actually looking to have to do work. He’s looking to collect his gubmint healthcare and salary. That comes across in all the testimony I watched him give during last year’s various hearings.

    If there was something he should have investigated, and can prove to have actively assisted in covering up, Obama should fire him.

    Oh wait…Jeff Immelt.

    Walsh ain’t goin nowhere.

  4. Jason Werner says:

    The OCC is loaded with crimes, RICO everywhere, fraud everywhere, theft everywhere.

    “Moreover the LORD thy God will send the hornet among them, until they that are left, and hide themselves from thee, be destroyed.
    Thou shalt not be affrightened at them: for the LORD thy God is among you, a mighty God and terrible.
    And the LORD thy God will put out those nations before thee by little and little: thou mayest not consume them at once, lest the beasts of the field increase upon thee.
    Deuteronomy 7:20-22

  5. l vent says:

    This is indeed scandalous, beyond belief. AMERICA is no longer a democracy, AMERICA is now a fascist PLUTOCRACY and an OLIGARCHY dictatorship that oppresses it’s own people. COMMUNISM will be the next bomb to drop on AMERICA and AMERICA is only one national disaster away from a complete UN/ NEW WORLD ORDER TAKE OVER. The HIJACKING OF AMERICA by the foreign interest (UN/ New World Order) hiding behind the scenes of this are extremely insidious and pernicious and are hell bent on the destruction of all of our rights that protect us from them under the U.S. CONSTITUTION and THE BILL OF RIGHTS. They want to take away our RIGHT TO BEAR ARMS, our PROPERTY RIGHTS and our NATIONAL SOVEREIGNTY in THE UNITED STATES OF AMERICA..The Origination Fraud proves they were up to no good from the INCEPTION of the PONZI SCHEME HEIST. My AG’s office way back in September told me the fraud in the loan mods is extremely hard to prove because we have to prove an intent to harm and lying is not a crime. DECEPTIVE PRACTICE IS LYING AND THAT IS A FEDERAL CRIME PROSECUTABLE UNDER THE RICO ACT. TIME FOR THE AMERICAN PEOPLE TO UNITE, INDIVISIBLE AND SUE THE CRIMINALS. THEY BROKE CONSTITUTIONAL LAWS AND FEDERAL LAWS that were put in place to protect us from the criminals, NOT VICE VERSA. WE THE PEOPLE must stand strong and not back down to them. That is what they want, to make us all feel helpless and unprotected and they want to try to make us become cowards who are too afraid to fight back. When push comes to shove, we must shove harder and then WE THE PEOPLE must deliver the knock-out punch. These loans are UNCONSTITUTIONAL and never existed because of the ORIGINATION FRAUD that was used to cover up the GSE’s inception of the PONZI SCHEME. Because of the FRAUDULENT INDUCEMENT of the MORTGAGE LOANS, they are ILLEGAL. RESCIND OUR LOANS. Give the stolen homes and stolen wealth back to the AMERICAN PEOPLE. Get miedieval on YOUR PROPERTY RIGHTS nd gather up all of the proof that you have of all of the fraud and sue them for defrauding and robbing you. This is still The UNITED STATES OF AMERICA, and OUR U.S. CONSTITUTION and OUR BILL OF RIGHTS protects WE THE PEOPLE from a TYRANNICAL GOVERNMENT THAT OPPRESSES ITS PEOPLE, no matter what lies they try and contrive to make us believe otherwise. GOD BLESS AMERICA!!!

  6. Lit Gant says:

    And were are chasing Khadafi? We are ready to destroy a nation run by a crooked banker and our Khadafi-bankers can get governmental protection?

    Akk if these men need investigated. They are all on a secret payroll. Why are they having secret meetings before they come public to act like what they are doing is in the sunshine?

    We are a corrupt nation. From the drug dealers to the bank dealers we are a corrupt nation. I was thinking if the Republicans are not corrupt they would stop all this and stand out as corruption fighters. But alas, they do not care for the people they claim they are representing in their tea-party dope-outs. God, please help us.

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