WOW! Price Waterhouse Coopers wants to charge a WHOLE WHOPPINGING MASSIVE AMOUNT OF MONEY to review the bad book of business that is the GMAC loan portfolio. So what exactly are a bunch of accountants charging a WHOLE STINKING LOT OF MONEY TO DO? From the Petition:
In particular, the six workstreams involve reviewing the loan file review population for (i) potential
violations of state foreclosure laws, (ii) the Debtors’ standing to bring foreclosure actions,
(iii) potential violations of bankruptcy laws in borrower bankruptcies, (iii) potential violations of
the SCRA,7 (iv) potentially improper conduct by the Debtors in the loan modification process,
and (vi) potentially improper fees assessed to the borrower.
Now the thing I wonder about is….How are a bunch of accountants qualified to answer legal questions? Perhaps the hire attorneys to analyze and compare laws state by state. Maybe? Huh?…right on. Yes, that indeed appears to be the case….
PwC coordinates with the Law Firms,
as independent counsel, to provide responses to various questions for each loan file to determine
whether applicable state or federal laws may have been violated, or whether the Debtors may
have improperly charged certain fees.
(Little ole me down here in the sticks wonders how many times they’ve found that state laws on issues like forgery or non compliance with civil rules or substantive law have been violated.)
But it gets better….PWC is also working for the potential buyers of the GMAC assets….
Additionally, PwC has been retained by Nationstar Mortgage LLC
(” Nationstar”), the stalking horse bidder for the Debtors’ servicing platform, in an ongoing
matter related to the Debtors and these Chapter 11 cases.
And just how many loans are being reviewed as part of this process?
PwC has developed procedures to identify the loan population (232,000 loans), as well as loans for
identified risk segments (20 risk segments), and continues to perform certain data analytics and
limited data validation procedures to ensure data integrity and quality in the FRB Foreclosure
Review process. PwC’s sampling approach (over 5,000 loans and over 12,000 borrower outreach
complaint samples) and execution of their review and identification for missing documentation
or other issues are monitored by the Regulators.
Huh? Come again? A sampling size of 5,000 loans? That’s the universe?
Well, what’s really the point in even looking into all this after all?