Office of Comptroller of Currency and Independent Foreclosure Review

There are a number of articles discussing the OCC and the Independent Foreclosure Review so I recently viewed the Office of Comptroller of Currency's website and some of the consent orders that were entered into by the Banks.  The Consent Orders are nothing more than settlement agreements.  The Consent Orders list numerous items of wrongdoing that have been discovered in one or more files, but it is not determined to be an industry-wide occurence let alone the standard operating procedure for those involved in the foreclosure process.  Further, by signing the consent decrees the Banks do not admit to any wrongdoing. 

An article recently suggested that the OCC consent orders could be used offensively in State Court proceedings by Homeowners who have suffered from fraudulent activities involved in their mortgage/ foreclosure.  However, the Banks have not admitted to doing anything wrong and have merely settled in order to avoid the cost of litigating and defending themselves against cease and desist orders.  Any attempt to use the OCC and the Consent Orders offensively by Homeowners, will most likely be met by arguments that the Homeowner's loan file has been reviewed and found to be in order. 

The OCC and the various consent decrees should be seen as nothing more than a warning sign.   The foreclosure process is ripe with mistakes, errors, and outright fraud.  Homeowners should aggressively defend the foreclosure.  Do not be lead astray.  HAMP, the OCC, as well as, any government program that seems to be assistance to the Homeowner, is merely an attempt to whitewash the Foreclosure problem.  I suspect that the OCC Independent Foreclosure Review will have defenseless Homeowners sign up to have their file reviewed by someone who needs the system to work.

Previous governement programs have created a system of professionals who understand the loan modification process, the HAMP application procedure, the Catholic Charities or the Save The Dream application process.  But the professionals who are supposed to assist the Homeowners through these application processes do not object to the fees, costs, or charges added to the Homeowner's loan.  The programs have essentially turned Homeowners facing foreclosure into miniture account representatives for the Banks.  The government would like to give the Bank $Billions but what account should the Bank apply these funds to .....

................... (imagine Bank executives and Government officials confering) .......................................

The Bank will apply these funds to the account of whichever Homeowner succesfully navigates the program before the money runs out.  Minus, of course, fees paid to the Bank for completing the application on behalf of the Homeowner.

................... (imagine Bank executives and Government officials confering) .......................................

And the program will have to be just embarassing and degrading enough that not all Homeowners will apply.