In a review of the largest mortgage servicers in the country, The Federal Reserve is finally getting a clue as to the shoddy lending practices that South Florida Law Blog has been discussing for years:
● Insufficient oversight,
● Poor corporate governance,
● Improper affidavit and notarization practices, and
● Poor quality control.
While The Fed concedes this might have resulted in wrongful Florida foreclosures, Oppenheim Law knows that countless foreclosures were filed when they should never have been.
The good news? The Fed is now pursuing formal enforcement actions against the 14 servicers they reviewed. The bad news: it will likely take years before these servicers have to pay for their fraud. Knowing the way the government usually operates, the servicers may never have to pay for their crimes. Perhaps this is the biggest outrage: the government has proven that these servicers perpetrated a massive fraud that has damaged the entire economy and kicked out homeowners who never should have been forced to leave their homes. Yet, the servicers are still operating and making billions!
While we’ve previously implored to Federal Reserve Chairman Ben Bernanke to “do your job!”, we don’t hold out much hope that all mortgage servicers will get the dressing–down they deserve. Nevertheless, we’ll continue to fight for the homeowner, from the trenches.