Banks: First we bail them out and this is our reward. Treasury To Penalize Mortgage Companies
My favorite subjects. "Banks, oh, how I love despise them".
Timely post. Just Google "Bank of America fines". Think you'll find just one? Think again.
The big three get nailed frequently. They evidently just figure they're too big to really get hammered.
The fines are included as just a cost of doing business. Small fines, big profits. Do the math.
Then look in the rear of your shorts. Yep, they did it again. BOHICA.
Treasury To Temporarily Penalize Mortgage Companies, Making Good On Old Threat 3 of the largest mortgage companies are failing to comply with the MHA program used to help struggling homeowners. The Treasury has been threating for 19 months, yep 19 months, to penalize these lenders for non-compliance and "abusing homeowners". "More homeowners have been kicked out of the program than are receiving assistance."! Really?! I had to share this article and spread some awareness.
"Treasury first identified potential mass non-compliance in November 2009, warning the participating companies that those failing to meet their obligations to homeowners under their contracts with the federal government "will be subject to consequences which could include monetary penalties and sanctions." The Obama administration spent the next year and a half defending itself against accusations levied by federal auditors, members of Congress and consumer groups that it was soft on the big banks' abusive behavior due to its reluctance to follow through on that threat."
What is your reaction to this? The best part is two of the banks are refutting the results and said it doesn't matter to them... BUT it does matter to them to get the market turned around. So, we bail them out and then they turn the screws more? Blatant abuse? Where do we point the finger? We're paying the bills and this is our tax dollars at work.
The grades are in and they are terrible: "Bank of America, Wells Fargo and JPMorgan Chase, which collectively service about half of all home loans, abused homeowners and violated the rules of the Making Home Affordable (MHA) program, Treasury said. The initiative aims to lower monthly payments, reduce loan balances or enable distressed borrowers to sell their homes before they're seized by awarding a series of incentive payments to banks, investors and homeowners when foreclosures are averted. Treasury is only withholding pay to the three banks.The three were found to need "substantial improvement," the agency said in a statement. Cumulatively, they received $24 million in government incentive payments last month. Last quarter, the three financial behemoths collectively reported about $11.4 billion in net income."
"Potentially "thousands" of troubled homeowners were denied opportunities to lower their monthly mortgage payments under the administration's program due to servicer errors and inadequate oversight by Treasury, according to a June 2010 audit by the Government Accountability Office (GAO)."
Please take a minute to read the Full article and add your comments. This program has been a huge failure and how do we fix it?
One option for distressed homeowners is a shortsale. Need pre-forclosure tips? Denver shortsale Realtor
_______________________________________________________________________________________________
Cory Fitzsimmons, Kitz & Associates, Inc., Golden, CO 303-238-4734
www.housefitz.com Denver investment property Denver Income property
Your Denver Metro Broker-Associate and REALTOR® "Out standing in my Field"
Colorado Foreclosure Hotline 1-877-601-HOPE HOTLINE WEBSITE: ColoradoForeclosureHotline.org
The information contained in Cory's blog is deemed reliable but is not guaranteed, and the opinions and views expressed in these articles are solely those of the author.
Comments(6)