Unlike State Attorneys General and the US Department of Justice who, in their settlement at least created enforceable parameters for payments, principal reductions and other relief for homeowners, the Office of Comptroller of the Currency isn’t even pretending to exercise control or oversight of the settlement that they announce yesterday.
The Huffington Post reports:
“Under the new process, OCC officials explained, banks would take the 4.4 million foreclosed mortgages involved in the original review and broadly classify them into 11 “buckets” corresponding to the level of fraud during the foreclosure process. Borrowers with foreclosed loans that fall into the highest-priority bucket, such as foreclosures illegally conducted on U.S. troops while they were fighting overseas, will qualify for a payout of as much as $125,000. Those in the lowest-level group, such as loans with a clerical error, will qualify for at least $250.”
But here is the outrageous part:
“Banks will be making all the “slotting” decisions, something OCC officials said was needed to speed the process.”
Speed is certainly important but putting the criminals in charge of determining restitution is unprecedented in american jurisprudence.