Sunday, April 21, 2013

Foreclosure Fraud Settlement Update: Banksters Begin Making Their Paltry Payments To Homeowners With Rubber Checks

ABC News reports:

  • Some of the foreclosure checks bounced.

    A bunch of big banks agreed to a $3.6 billion legal settlement a few months ago to halt a review of improper foreclosures. Under the settlement, checks will be sent to more than 4 million homeowners who lost their homes to foreclosure in 2009 and 2010.

    The first wave of checks was sent Friday. And, according to the Federal Reserve, at least some of them bounced. The Fed phrased it this way: "Some early recipients of checks informed the Federal Reserve's consumer helpline on Tuesday that they were told their checks could not be cashed."

    The Fed says the problem has been solved.

    Screwing up for fun and profit

    This is the latest episode in a long tragicomedy in which banks, regulators and consultants rival the Keystone Cops in ineptitude. Those banks, regulators and consultants have excelled at only one thing: protecting one another. Meanwhile, borrowers are abused repeatedly.

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