Foreclosure Review Pays Consultant $4 for Each $1 to Homeowners
Consumer groups have been quick to criticize the Office of the Comptroller of the Currency’s independent foreclosure look-back reviews for giving the banks under scrutiny too much say in the process of reviewing their own loans.
A more fundamental issue—the actual mechanics of the reviews and their results—has received less attention.
The OCC granted each consultant responsibility for designing its review methods. Promontory Financial Group, which is conducting Bank of America’s review, includes seven sets of yes-or-no questions, labeled A through G. For each homeowner’s review file, Promontory and B of A employees must address a total of 14,768 items, according to a May 2012 presentation Promontory provided to consumer groups.