The New York Times | October 6, 2015 The promise of widespread relief for homeowners facing foreclosure in the wake of the housing bust has never been realized. The government did not require the banks to rework bad loans, which in many cases the banks offloaded on the federal agencies that insured them. Now these same agencies are selling some of these loans at a discount to hedge funds and private equity firms. Has this merry-go-round helped homeowners? No. The myth of mortgage relief lives on. Read more here.
Last week, I detailed bombshell revelations from Bank of America whistle-blowers, in which former employees of the bank detailed systematic fraud and deceptive practices inside their loan modification department — including bonuses and Target gift cards for staff who racked up foreclosures. Read more here.
The practice of robo-signing documents that led to widespread abuses by national mortgage servicing companies led to a landmark $1.5 billion settlement against five of Americas largest firms. About 1,379 Maine residents will begin receiving checks today that average approximately $1,480. Read more here.