Why the Banks Were Thrilled About The $8.5B Independent Foreclosure Review Settlement

Fraud Settlement

Why the Banks Were Thrilled About $8.5B Settlement

The banks are thrilled at the latest settlement, confirming yet again their ability to break the law with impunity. Consider the following, from the litigation between Syncora Guarantee (formerly XL Capital  Assurance) vs EMC Mortgage Corp, and Ambac Assurance vs vs EMC Mortgage Corp:

Compare Comments made by Consultants Hired to do Foreclosure Reviews:

“Oversight by the regulators was nearly nonexistent, the reviewers said. Some employees hired by one of the consultants, Promontory Financial, to pore over hundreds of thousands of Bank of America foreclosures said that without a watchdog some consultants worked to minimize the number of homeowners found to be harmed. One reviewer described how her supervisors routinely kicked back loans where she had identified harm. The reviewers would speak only if they were not named because they were searching for work…”

With comments made by Whistelblowers about due diligence on mortgages before they were securitized – full transcript attached:

19 Q. So as I understand it, through the team leads you received directions that the clients wanted the underwriters to ignore certain defects in loans?
24 A. That is correct.
Q. Turn to paragraph 17 of your affidavit, which is on page 5.It says here in the first line: “Clayton supervisors would often inform the due diligence underwriters that the purchasers wanted the underwriters to approve loans that often did not satisfy the underwriting guidelines.”
11 A. That is correct.
12 Q. Is the same statement true for Watterson Prime?
14 A. Yes.
15 Q. Was this a practice which was pervasive at Watterson and Clayton?
17 A. Yes.
18 Q. Across all clients?
19 A. Yes.

Rest of the transcript here…



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