Sunday, October 16, 2011

Reports On Federal Government Effort To Sweep Foreclosure Fraud Scandal Under Rug Continue

American Banker reports:

  • Can you count on the emperor’s handpicked ministers to tell him when he’s naked? Banking regulators seem to think so.

  • The April consent orders against mortgage servicers let the companies pick one or more professional-services firms to review their foreclosure actions for abuses and report the findings to the agencies.

  • Allowing the banks to choose their own judge, jury, and jailer presents almost untenable conflicts of interest. All of the consulting firms that were initially being considered to do the work serve the banks already. The banks, and their mortgage servicing operations, are existing or prospective clients.

For more, see Banks Hire Friendlies for ‘Independent’ Foreclosure Reviews.

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