John Walsh of the OCC Speaks to Financial Services Roundtable “Some Foreclosures Should NOT Have Taken Place at All”

It’s more than “some” Johnny Boy…

It should of been NONE.

From the speech…

The enforcement actions that the federal banking agencies took against the large servicers were intended, in the first instance, to fix the very serious problems we found in foreclosure processing, and in the second to ensure that any borrowers harmed by shoddy practices receive appropriate remedies. The problems we found ranged from the highly-publicized “robo-signing” to the failure of servicers to have required documents at the time they filed foreclosures. But while the compliance collapse was troubling, a potentially more troubling issue was the prospect that some foreclosures should not have taken place at all, because of a bankruptcy filing or protections members of the military are entitled to under the Servicemembers Civil Relief Act.

We began our work by launching an intensive horizontal exam in concert with the Federal Reserve, the FDIC, and the Office of Thrift Supervision, and evaluated a sample of 2,800 foreclosures. Fortunately, we found relatively few cases in which a foreclosure should not have proceeded: although a small number of borrowers were entitled to protection because of a modification in process, bankruptcy filing, or military status, all foreclosed borrowers in the sample were seriously delinquent. And while the sample was small, I don’t expect to see much change in those proportions. Our mortgage metrics project, which captures loan-level data on 63 percent of all first-lien mortgages in the country, found that 94 percent of borrowers foreclosed upon in 2010 were at least six months past due on their payments.

However, we did find very significant compliance weaknesses, and our enforcement actions put into place a program that is intended both to ensure the process is fixed and that any borrower harmed by shoddy practices is compensated. Under our orders, banks will be required to develop a plan to ensure a comprehensive review of past foreclosure actions and to retain an independent consultant to conduct that review and make sure borrowers who suffered financial harm are identified and given an appropriate remedy.
The enforcement actions set out a number of steps that banks must follow to correct those deficiencies, and for those banks, the orders are de facto servicing standards. We think that these orders will ensure that the banks responsible for servicing 68 percent of the nation’s mortgages will be observing standards that ensure that every borrower, particularly those experiencing distress, are receiving every protection they are entitled to under law.

Those standards won’t be easy to meet. One of our large national banks announced it would be hiring up to 3,000 employees to comply with the orders, and another is setting up an additional 28 service centers around the country to help borrowers facing foreclosure. But however expensive and difficult compliance may be, these standards must be met. The processing scandal eroded public confidence not just in the fairness of the foreclosure process, but in the competence of our nation’s banks. It subjected the industry to widespread criticism, including from members of Congress, the media, the judges who hear foreclosure cases, and consumer advocates.

And the legal problems stemming from the foreclosure processing mess are far from over. In all honesty, I can’t recall a case in which so many governmental bodies were engaged in investigating program and legal violations by one industry. In addition to the federal banking agencies, the 50 state Attorneys General, the Department of Justice, the Department of Housing and Urban Development, the Federal Housing Finance Agency and others are all involved.

Full speech below…

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4closureFraud.org

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Remarks by John Walsh Before the Housing Policy Council

Comments
13 Responses to “John Walsh of the OCC Speaks to Financial Services Roundtable “Some Foreclosures Should NOT Have Taken Place at All””
  1. Lies and more .ies says:

    TO michael lyn I vent and i have been sharing posts for almost a year you are new you do not understand the fraud going on i vent has been right from the begining and has guided me to write all government entities explaining the fraud. the OCC the sanators and the florida AG do not know what to do do. Why do banks who at loan origination rarely lose your faxed pay check stubs bt during modfication they are routinley lost, why do files get moved and the banks lie saying the customers file was never compromised. We r bring tourtured. We r so stressed. We need solutions we need salvation before we lose our lives from ailments. Remember these homes r usually the 2 or 3rd home we moved for reasons mine was excape the east broward county school system my son is graduating in13 days from high school i may be losing my house but my child id drug free heading for college.

    • l vent says:

      You are soo right lies and more lies. They want us to pay for our own robbery. There are a bunch of freaking Nazi’s, the fourth reich behind all of this financial terrorism. The American people have to be tough and keep fighting this tyranny and keep on calling them out and never cower to them, that is what they want. The Nazi’s blamed the Jews for their own slaugter after the Holocaust and said they were executed because they were cowards.. These Foreign owned and operated Oligarchs may have hijacked America, but they do not own it or our homes. Our homes are paid for free and clear because of their PONZI SCHEME and the American side of this knows this is true. Nobody wants to be held responsible for this mess but because of all of the economic hardship the financial terrorists have caused, the emperor has no clothes. They will pay for this, it is coming. Chris Whalen explained the how and why in his Bloomberg video, Foreclosuregate is a cancer. You can google that. This is TRICKLING UP TO THEM, SLOWLY BUT SURELY.

      • l vent says:

        You are right, the AG’s, the FDIC, none of them know what to do. There is soo much fraud, they all know it, it can’t be ignored. Obama put alot of the culprits in place because they thought they could fix this. There is no fixing this. There is way too much FRAUD. Fox talked about this a couple of weeks ago on Cavuto, if there is fraud ANYWHERE IN THE CONTRACT, THAT KILLS THE CONTRACT. Then the securities fraud is another HUGE CRIME. The judges can’t keep house stealing for FANNIE AND FREDDIE either because they know when the shit hits the fan, and IT IS coming, they are going to go down with the Ponzi Scheme TITANIC of mortgage fraud. Time for FANNIE and FREDDIE to just walk away and eat all of the worthless paper they created. They cancelled themselves out. All of this debt they created is unsustainable.

  2. Pamela says:

    How contrived you know he didn’t come up with this all on his own.He simply does not have enough brain power to generate this or enough imagination.

  3. victom says:

    I’m out 200,000. The OCC should be defunded.!

  4. Dan says:

    I’m sure during the investigation they received some highly accurate documents from the banks (not). I have complained from the White House all the way down through their lateral offices with no response at all and if so they were no findings. Hmmmmm, kinda interesting for a fella like me with not much of an education can rifle through the documents and find them filled with lies and errors but our Governmental offices are 1)too lazy 2)oblivious 3)affiliated with the corruption also, plain and simple. Wake up White House before theres a riot or revolution over this.

    • leapfrog says:

      I complained to the OCC three times about Bank of America. I would cut and paste the same complaint once every 30 days. I finally received a scolding letter from the bankster confirming/denying/trapping itself in writing (my attorney loved that part) in a lame attempt to brush off my complaints. The OCC did not respond until ONE YEAR and a few months later. In their bank-apologist letter they basically stated that the bank had told them everything was just fine, so based on the bank’s word that everything was just fine, they were closing my case and I could add no further comment. They were just concerned to do the bankster’s bidding; the heck with any consumer protection or doing the bidding of those who pay taxes and pay the OCC’s salary. As the Alabama republican senator Bachus says, “Washington government and the regulators are there to serve the banks.” He’s not one of the good guys either. He’s totally pro-bankster. He firmly believes in what he says. Scary.

    • Tim Bryant says:

      I can tell you that as early as 2003, the OCC knew that mortgages were being sold BEFORE the closings even happened. That makes the closing docs a nullity, since they were not between the proper parties. Read the TBA securities section. The OCC, SEC, and Treasury knew illegal transactions were occurring…

      http://www.sec.gov/news/studies/mortgagebacked.htm

  5. leapfrog says:

    Sounds like old Johnny boy is backpeddling. Their buddies at the Fed (which should be abolished) found no errors at all in the files (hand-picked/cherry-picked by the banksters first) they reviewed.

    • l vent says:

      Yes leapfrog, the FED should be abolished. WALL STREET AND THE FED are nothing more than crooks who create tremendous wealth for the top tier, 1% out of gambling on everything imaginaeable UP THERE ON WALL STREET/FRAUD STREET, and debt for the rest of humanity. WALL STREET AND THE FED ARE NO MORE THAN ONE GIANT PONZI SCHEME, THEY GET SICKENINGLY WEALTHY OFF OF FRAUD. This FOREIGN OWNED AND OPERATED, OLIGARCHY is completely STIFELING and destroying FREE MARKET CAPITALISM. They want a world wide PLUTOCRACY ruled by OLIGARCHS. They hijacked AMERICA, robbed it and corrupted a large part of it, but they DO NOT OWN IT. TIME TO MAKE WALL STREET PAY FOR THE PONZI SCHEME AND THE INTENTIONAL FINANCIAL CRISIS THEY CREATED TO ENSLAVE HUMANITY AND OWN AND CONTROL THE WORLDS WEALTH AND PEOPLE. THEY WANT WORLDWIDE IMPOVERISHMENT AND DEBT SLAVERY FOR EVERYBODY ON THE PLANET. THEY WANT EVERYONE WORKING FOR THE MAN. SCREW THEM. HUNDREDS OF TRILLIONS OF DOLLARS THEY MADE OFF OF THE AMERICAN PEOPLE WITH THEIR MORTGAGE PONZI SCHEME FRAUD.. OUR HOMES ARE PAID FOR FREE AND CLEAR BECA– USE OF IT. THEY ARE GREEDY BASTARDS AND WANT THE HO– USES TOO. DEATH TO THE FASCIST FOREIGN MULTINATIONAL OLIGARCHY TYRANNY!!!!!!!!!!!!!!!

  6. l vent says:

    Looks like this addmission by the comptroller of the currency proves one thing is for sure, it is way past time there is a Nationwide Moratorium on ALL FRAUDCLOSURES. THESE PRETENDER LENDERS DO NOT OWN OUR HOMES. Wall Street and the Banksters as well as the GSE’s FANNIE/FREDDIE (WHO ORIGINATED THE FRAUD) made hundreds of trillions of dollars off of their massive mortgage fraud PONZI SCHEME SWINDLE AND HEIST. OUR HOMES ARE PAID FOR FREE AND CLEAR BECA– USE OF THAT. FANNIE/FREDDIE AND THE BANKSTERS/SERVICERS, ALL OF THE PRETENDER LENDERS NEED TO WALK AWAY. They are all way to greedy. Instead of paying themselves huge bonuses with the tax payer funded bailouts, they should have been forced to pay for their massive fraud and give the stolen homes back to the American people who they Unconstitutionally and illegally stole their homes.

    • Michael-Lynn says:

      Please – I vent,

      Explain how banksters “made hundreds of trillions of dollars” when none of the debt is real and there is no money in this cashless society?

      Love your vents, just think that you mis-spoke this time and made a little slip of the tongue in your outrage that is excellent!

      • l vent says:

        Read the book The Great Stick-up of America by Robert Shear. You don’t think the banksters are part of the Wall Street Casino? CNBC reported that in 1999 alone Wall Street/the Banksters made 60 trillion off of morgage derivatives fraud alone. They all share the same bed. Elliot Spitzer talks about their Ponzi Scheme, watch the CNN videos. Elliot reported they got a total of 2+trilion in bailouts,after they Intentionally cashed out of the market in ’08 and stiffed everyone, and now the banks are a bigger Oligarchy than ever. They are deceptive but the truth is out there. The fox has been guarding the hen house all aong and still is. Watch Elliot Spitzer, he has their number. The link is here Matt Tailbi on Elliot Spitzer, there a ton of great videos. There is also a link here entitled The Giant Pool of Money- How They Transferred the Wealth. It is under Foreclosure Fraud Resources.They are all incredibly deceptive as to the way they change identities and that is how they pulled off the biggest Ponzi Scheme Swindle and Heist in history.

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