Independent Foreclosure Review Fail | NY Times – Foreclosure Relief? Don’t Hold Your Breath

Foreclosure Relief? Don’t Hold Your Breath

BUT Michael Olenick, a specialist in mortgage research, said he spotted a conflicted consultant after one hour of digging. Allonhill, a smallish firm appointed by Aurora Bank, a mortgage servicer, is headed by Sue Allon, whose previous small firm acted as credit risk manager in a 2003 mortgage pool for which Aurora oversaw the loans’ servicing. The prospectus on that deal noted that Murrayhill, Ms. Allon’s former firm, would “monitor and advise the servicers with respect to default management of the mortgage loans.” It also said that Murrayhill would make recommendations to the servicers regarding delinquent loans.

Now, under the comptroller office’s program, Ms. Allon’s firm may be analyzing the treatment of borrowers on whose loans it acted as credit risk manager. “This conflict is so deep and so obvious, how could anybody have missed it?” Mr. Olenick asked.

A representative for Ms. Allon wrote in an e-mail that Allonhill “focuses on a different area of the mortgage industry than Murrayhill did.” She said the foreclosure information Allonhill was reviewing for Aurora was “outside the scope of what was provided to Murrayhill.”

Aurora did not comment.

JPMorgan Chase’s hiring of Deloitte to analyze foreclosure practices also raises questions. Deloitte was the auditor not only for Washington Mutual, the huge mortgage lender that collapsed in 2008, but also for Bear Stearns, another defunct firm. Both WaMu and Bear were acquired by JPMorgan, so any loans they made may come under scrutiny by the same firm that audited their books.

Nye Lavalle, a foreclosure fraud expert who began warning bank executives about bad lending practices back in 1999, is troubled by this situation. “This review process is a wink-wink, nod-nod,” he said.

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3 Responses to “Independent Foreclosure Review Fail | NY Times – Foreclosure Relief? Don’t Hold Your Breath”
  1. Bobbi Swann says:

    Got my vote!!!

  2. Patrick Herrmann says:

    US bank lost my file three times. They never responded to any letters that I sent them. The attorneys never responded to any letters that I sent to them. I documented everything that I could and kept all of the letters that I sent to US bank , their attorneys, and the court system. What I want to know is how are they going to financialy reimburse me for my losses. What losses you ask? 1. My house being lost 2. my second mortgage needing to get paid off 3. my loss of credit 4. my credit cards lowering my limit and requiring all balances to be paid immediately . 5. my loss of credit with the banks so that I have no where to live . 6. my loss of credit so I can not take out business loans . The independent foreclosure review in not independent. It should be called Bank Foreclosure Review. Oh, and I am sure that if these “independents” don’t find the results of the review in the banks favor then they will loose their jobs. What will keep the banks from moving on to another review company? How do the independents get paid? By the hour our by how many reviews they can deny? US bank is absolute garbage and even if the Independents do find in my favor they cannot repair the emotional toll causing severe health issues and post traumatic stress. They will not reimburse me for what I feel would be propper only what the (independents can justify as proper). I hope I win the lottery because I will the best attorney in the world go after them!

  3. Tee says:

    VOTE FOR RON PAUL………..or just keep putting up with all the Big Bank / Gov corruption. You watch all these pigs try and discredit him and he holds his ground and never wavers his story. They all laugh at him (other politicians) Perry, Romney, Cain (what a loser) but it doesn’t effect his straight forward mission. I would loveeeeee to see him get in and shake up the works…..its what we need….tired of the foot dragging BS..

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