As consumers begin receiving their piddling little settlement checks, we should all be rioting in the streets upon learning that while consumers got next to nothing, the bank consultants got nearly $20,000 for every file they received.
Yep consumer, keep that in mind as you cash that check, it cost the banks $20,000 to decide that you are entitled to receive $300….that’s gubment math for ya!
From USAToday:
WASHINGTON — A belated attempt by bank regulators to get compensation for homeowners who were foreclosed on by mistake turned into a debacle by the time it was shut down in February and is now becoming a scandal as more details emerge.
The Independent Foreclosure Review (IFR) was set up in 2011 to engage outside consultants to look at foreclosures taking place in 2009 and 2010 and determine where errors were made.
But last February, regulators decided after two years with only 100,000-some cases reviewed that the process was too much trouble, and opted instead for a $9.3 billion settlement with the biggest mortgage companies that awards the victims pennies on the dollar for their losses.
In all, 80% of those subject to the foreclosures covered by the agreement will get $1,000 or less, while the outside consultants who handled the review reaped a windfall of $2 billion, nearly $20,000
USA TODAY
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I wonder how many other homeowners were placed in the wrong payout category, as was my experience. They sent me $2000 for ‘modification request denied.’ I should be compensated for the category in which the servicer failed to convert a successful Trial Mod into a permanent one. After all, I was on the Trial program for eight months, then kicked off without reason. Every payment was made on the first of each month……there is no apparent redress available, as calls to the OCC and Rust Consulting led to chapter and verse of “At this time, there is no process in place to contest either the category or amount paid.” I asked if I should call Ben Bernanke, and the Rust Consulting staffer replied, “Sir, I cannot stray from my prepared responses to questions from homeowners.” Five years of litigation and now this? These people owe me $4000 more. Period.