Oh, how nice. We have this from MarketWatch:
Banks to be sanctioned for foreclosure violations
Bank regulators found violations of state and local foreclosure laws
Major U.S. banks are about to get penalized for “critical deficiencies” and shortcomings in how they handled foreclosures, a top federal regulator said Thursday.
“These deficiencies have resulted in violations of state and local foreclosure laws, regulations, or rules and have had an adverse affect on the functioning of the mortgage markets and the U.S. economy as a whole,” said Acting Comptroller of the Currency John Walsh at a Senate Banking Committee hearing examining the Dodd-Frank Act six months after its congressional approval.
“The OCC and the other federal banking agencies with relevant jurisdiction are in the process of finalizing actions that will incorporate appropriate remedial requirements and sanctions with respect to the servicers within their respective jurisdictions,” said Walsh.
Sounds like some laws have been seriously broken here, no? And further, apparently, a serious conflict of interest from the outset:
Regulators have been reviewing files in response to concerns that mortgage-servers are improperly racing documents through the foreclosure process.
Loan servicers, often owned by the biggest U.S. banks, collect a fee for administrating all aspects of a loan, including sending monthly payments to mortgage investors, maintaining records and collecting and paying taxes and insurance.
And even the regulatory body in charge of oversight of these institutions seems to be….well, not protecting the parties they were charged with protecting (the consumers) and instead, protecting the criminals:
“We believe that the OCC is clearly trying to catch up, but they have a record of standing in the way of protecting borrowers,” said Carey. “Systemic failures by some of the country’s biggest banks occurred – and continue to occur – on the OCC’s watch.”
So just what will this action be that ‘incorporates appropriate remedial requirements and sanctions’?
Apparently, a fine.
Now, you tell me, WHY IS THIS NOT PUNISHABLE BY PRISON TIME? And so, the looting continues.