No Bank wrong doing in $9.3 Billion Foreclosure Settlment

[Exterous]

The banks don't have to admit wrong doing in the $9.3bn settlement with the US government.

The government says:

the probe threatened to drag out indefinitely, with too much spent on consultants and not enough mistakes uncovered.

yet:

some of the country's biggest banks were on pace to find a higher rate of past foreclosure errors than regulators disclosed when they stopped the reviews. Last week, a federal watchdog faulted the bank regulators for a flawed review of those foreclosure documents.

They at least could have made the banks correct the credit reports

Banks must notify credit bureaus independently about any changes to a borrower's credit history and aren't required to do so as part of the settlement with regulators.

Lose your $365,000 house? Get $62,500

Eric Krasner, 52 years old, of Duluth, Ga., filed for bankruptcy before losing his Frederick, Md. house to foreclosure in 2010, a mistake that should mean a payment of $62,500

Those 1,135 individuals [who lost their homes despite not defaulting on their mortgages] will receive checks of $125,000

Of course - it could have been more people than that but the investigation was stopped:

Because the foreclosure review was shut down by regulators, it isn't clear in many cases how badly the borrowers were wronged, if at all.

But at least thats far above the average payout - many of whom were placed

borrowers, however, will see far less, with about 80% receiving checks ranging from $300 to $1,000, according to data released by the Office of the Comptroller of the Currency and the Federal Reserve.

http://online.wsj.com/article/SB10001424127887324504704578412872212265056.html#articleTabs%3Dcomments
(Searching for WSJ articles on google will get you access due to the WSJ/Google agreement)

Not saying every homeowner involved deserved to get payments but, at some point, it would be nice to get a person in the Whitehouse or a prominent Congressional leader who had the balls to actually hold large companies accountable for wrongdoing

 

[chucky2]

"Those 1,135 individuals [who lost their homes despite not defaulting on their mortgages] will receive checks of $125,000"

Whhhaaa???

 

[nehalem256]

Lose your $365,000 house? Get $62,500

Those affected by foreclosure mistakes questioned the fairness of the payouts. Eric Krasner, 52 years old, of Duluth, Ga., filed for bankruptcy before losing his Frederick, Md. house to foreclosure in 2010, a mistake that should mean a payment of $62,500 according to the regulators' compensation schedule. Mr. Krasner, who had a mortgage of $365,000, filed for bankruptcy after a gift shop he owned sunk under the weight of the recession and wound up losing his home.

Now I could be wrong but that doesn't sound like someone who was paying his mortgage.

Also note that the mortgage was for $365,000. That is not the current market value of the home let alone his equity.

 

[Pr0d1gy]

Wow, that must suck to work your whole life and have to declare bankruptcy at 50.