Tuesday, March 29, 2011
Why we need Elizabeth Warren and the CFPB
As she organizes the bureau, setting up its rules and procedures, she also had her people put together a presentation on the Great Mortgage Fraud for the 50 Attorneys General working on that investigation.
The nation's five largest mortgage firms have saved more than $20 billion since the housing crisis began in 2007 by taking shortcuts in processing troubled borrowers' home loans, according to a confidential presentation prepared for state attorneys general by the nascent consumer bureau inside the Treasury Department.This action by the CFPB will no doubt infuriate the Republican/Teabaggers and cause them to double down on their efforts to destroy anything of value in government. Pity we don't have a president who can fight back.
That estimate suggests large banks have reaped tremendous benefits from under-serving distressed homeowners, a complaint frequent enough among borrowers that federal regulators have begun to acknowledge the industry's fundamental shortcomings.
The dollar figure also provides a basis for regulators' internal discussions regarding how best to penalize Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial in a settlement of wide-ranging allegations of wrongful and occasionally illegal foreclosures. People involved in the talks say some regulators want to levy a $5 billion penalty on the five firms, while others seek as much as $30 billion, with most of the money going toward reducing troubled homeowners' mortgage payments and lowering loan balances for underwater borrowers, those who owe more on their home than it's worth.
Subscribe to Posts [Atom]
Post a Comment