Independent Foreclosure Review Scrapped On Eve Of Critical Watchdog Report, Congressman Says


“The data suggests that of the 4 million families who lost their homes to foreclosure since the housing crash, more than 400,000 had some bank-caused problem in their loan file.”


Foreclosure Review Scrapped On Eve Of Critical Watchdog Report, Congressman Says

The surprising decision by regulators to scrap a massive and expensive foreclosure review program in favor of a $10 billion settlement with 14 banks — reported by The New York Times Sunday night — came after a year of mounting concerns about the independence and effectiveness of the controversial program.

The program, known as the Independent Foreclosure Review, was supposed to give homeowners who believe that their bank made a mistake in handling their foreclosure an opportunity for a neutral third party to review the claim. It’s not clear what factors led banking regulators to abandon the program in favor of a settlement, but the final straw may have been a pending report by the Government Accountability Office, a nonpartisan investigative arm of Congress, which was investigating the review program.

Rep. Brad Miller, a North Carolina Democrat, told The Huffington Post that the report, which has not been released, was “critical” and that the Office of the Comptroller of the Currency, which administers the review, was aware of its findings. Miller said that that one problem the GAO was likely to highlight was an “unacceptably high” error rate of 11 percent in a sampling of bank loan files.

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10 Responses to “Independent Foreclosure Review Scrapped On Eve Of Critical Watchdog Report, Congressman Says”
  1. TAKDP says:

    First..I called in Nov 2008 to request help due to the fact my husband lost his job in July 2008. I was told by BANK OF AMERICA they could not help us unless we stopped paying our mortgage and we had to do that for 3 months. I discontinued paying in Dec. Second… Many attempts to contact and figure out what to do at the end of the three months to no avail! We were given Foreclosure Papers by sheriff in the beginning of April 2009. We either paid all back payments plus late fees or we had to move. We moved in May of 2009. I KNOW WE WERE LIED TO, BULLIED AND ROBO SIGNED INTO FORECLOSURE! We have lost everything! Then a glimpse of hope for some restitution with the Independent Foreclosure Review….filed the request….waited…..waited….and waited some more. Now our REGULATORS AND GOVERNMENT are going to CUT A DEAL with the BANKS AGAIN and let them OFF THE HOOK AGAIN?!? We all need to CONTACT our CONGRESSMEN and STATE REPRESENTATIVES and let them know WE DON’T WANT ANOTHER DEAL WITH THE BANKS! We want them HELD ACCOUNTABLE for THEIR LYING, STEALING, BULLING AND ROBO SIGNING. I know the stigmatism that goes along with losing your home, but we all need to GET ON THE INTERNET AND WRITE or CALL and let the GOVERNMENT and banks know we will hold them all accountable! NO DEAL ON THE INDEPENDENT FORECLOSURE REVIEW!

  2. As far as I know the only ones paid by the settlement are the whistleblowers. I and my son and several people that have applied have only been told we qualify. We all had mod fraud pulled on us. Amongst the rest of the fraud. We were told our applications were being forwarded to the next process. So many so hurt by corruption, whom need this compensation to litigate or go on. I hope they really do find a better fair cionclusion to dspersing the funds out to people. Perhaps the funds that should go to the ones afraid to apply or unknowiing about the abuise or the Independent foreclosure review should nave the money awarded to them without filing an app and holding it in a trust until the people contact the trust for it or the trust finds them. Lots of media advertising should be done to let them know of the funds.Million of dollars being given to investigate this fraud that have been spent on a corrupt system. I hope they just divide it amoungst the 4 million that are foreclosed on that should qualiy and quit with the investigation process. I dont believe that one of the foreclosed on were lawfully foreclosed on. They promise not to hold the process up to much longer.

  3. The Dumb banks were sending my documents to a house I didn’t live at, a previous tenant’s house. !!! Then they want to cut it in half for my ex husband that left before the whole thing was even behind (cuz they said it had to be), And I have to go to court to show cause that he has signed everything over to me!! And that is in the records!!! The bank’s Realitor even drove to ouir new house in case we “stole ” anything!!! THEY ARE NOT GOING TO FIND US AFTER THE FACT!

  4. yvonne says:

    Does anyone know of anyone getting compensated as a result of the review?

    • NO compensations were made, and probably won’t be made now.

      • They did not scrap the compensations they scraped the review boards due to the corruption by the banksters that breached their settlement by involving past employes and the banks when it was suppose to be an independent review by parties outside of the banks. It is mentioned the people that scrapped the program reviews are gong to make sure it is a speedy new process inorder to disperse the funds due to this has taken to long. The fact that only a half a million people have applied when 4.4 were elligible is a problem also. So perhaps they will put a portion of the funds into a trust. Until they reach them.

  5. Herman Vergara says:

    I think: It’s an outrage HSBC Bank USA hasn’t had its U.S. banking licenses revoked for: “MONEY LAUNDERING” around the world. Bank crime shouldn’t pay.

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