WAPO: The Slow-Going Process of Compensating Victims of Fraudclosure

Fraud Settlement

Behind the mortgage settlements from the housing crisis

Banks have paid less than half the $5.7 billion in cash owed to troubled homeowners under nearly 30 settlements brokered by the government since 2008, delaying help to the millions of victims of discrimination and shoddy lending that epitomized the housing crisis, according to a Washington Post analysis of government data.

When the settlements were announced, with great fanfare, government officials hailed them as the long-promised reckoning with the financial industry. Regulators found that some banks had saddled borrowers with unaffordable mortgages or assigned higher rates to minorities even when they qualified for a better deal. Some banks were accused of having employees “robo-sign” foreclosure documents without reading them or having proper documentation.

But consumer advocates and lawmakers have grown increasingly frustrated by the delays in releasing the settlement funds, which they say are making it difficult for some borrowers to recover financially.

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3 Responses to “WAPO: The Slow-Going Process of Compensating Victims of Fraudclosure”
  1. Carla says:

    This was today’s well prepared propaganda from Bank FRAUSTERS:


    I feel like the ugly duckling, WHY not me?, lol.. After been working with Chase for nine months sending financial information every single month, they transfer the servicing to SPS on 5/1/2013. I was offered three different programs back on June 2012, and I was not eligible for any of them, something I’m assuming, because they never informed me for any final decision and they just transferred my mortgage. In two weeks is the trial, and I have a bad attorney, what a bad combination. It is no hard to imagine the outcome. But I will keep fighting.

  2. How does a family recover with three hundred dollar checks? Or even the $600.00 checks or the one thousand or two thousand, or six thousand. They are fighting to save the home. Have any really good attorneys that will accept those checks to save your house or even be expected to, they have cost and have to make a living too. No help is worse than this, which has happened to thousands, however how can anyone expect this penitence of funds to help the homeowners recover? Get real! Just like HAMP there was never any intent to help the victims, just make it legal for the crooks to get away with the crime. Send complaints to Elizabeth Warren and your AG until there is no room for the mail.

  3. Sarah says:

    The Washington Post, Erza Klein, et al has an established history, if not editorial requirement, to publish Bank subservient propaganda. And why not? This corporation is unavoidably conflicted, reporting for the wealthy in Bethesda, McLean and absolving institutions from Fannie and Freddie to the Justice Department for what is entirely a “troubled” borrower issue. It’s a revision of history, it’s complete denial of institutions like Wells Fargo, or BF Saul who distributed liars loans in Maryland more effectively than a roving band of pickpockets beating people in the street and stealing their wallets. What in heaven’s name do they fear? A sudden change where people can be respected, housed, employed and live out peaceful lives?

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