Much like back in the days of the wild west, when there were those who seemed to take what they wanted without any repercussions, the government chose to step in. Of course one of the most well-known occurrences was the settlement that the US government made with the Native American community.
Well, this time it didn’t seem to take as long to step in. We all can go back just a few years when it was rumored that bank employees were signing foreclosures without reviewing them, proclaiming they were complete and correct, which forced people out of their homes. This period is known as the robo-signing era.
Over a dozen major banks were forced to settle and begin to make payments to these harmed borrowers. This first round of payments is to the tune of $4.2 million spread out over the next 3 months. These payments will range from $300 - $25,000.
Two consulting firms, PricewaterhouseCoopers and Promontory Financial Group, along with the OCC and the Fed, are gearing up for their “15 minutes” in front of the Senate Banking Committee later this week.
Although the fees and unorthodox methods of settlement for foreclosure victims have been an issue of debate and criticism, the two consulting firms seem to get off easy compared to the blame hurled at the bank regulators, according to the Government Accountability Office.
Payments will begin for 11 out of 13 of the largest banks, such as: Bank of America, Citibank, Goldman Sachs, HSBC, J.P. Morgan Chase, MetLife Bank, Morgan Stanley, PNC, U.S. Bank, and Wells Fargo. There are a few institutions still in the process of a settlement.