OCC Bungled Foreclosure Settlement from Start to Finish
“Our new approach will get more money to more people much more quickly,” the Comptroller of the Currency said Feb. 13.
But where’s his proof?
The government’s deal with 13 servicers to end the unwieldy review of 4.2 million mortgages affected by the 2009-10 robo-signing scandal may indeed get money to borrowers faster, but it will not ensure they receive more money.
That’s because the government does not know which borrowers suffered what degree of harm.
The settlement should fit the harm, but the Office of the Comptroller of the Currency is making the harm fit the settlement.
According to an amended deal revealed last week, 13 firms will pay $3.6 billion to these borrowers. The servicers themselves will slot each borrower into one of 11 categories, depending on their circumstances. The OCC has pledged to review the servicers’ decisions, but borrowers will have no say and no way to appeal.