In the weeks after the mortgage settlement was announced by the Federal Government, I waited under baited breath to the see it in its entirety.
Almost every week I read a different report stating the documents to finalize the settlement were about to be filed in court.
And as each reported deadline came and went, I grew more and more skeptical.
Would the banks manage to sneak some last minute releases in? Would the lofty figures promised to beleaguered borrowers be diminished?
The good news, now that documents have been completed and released to the public, is that the answer to both questions is a sound no.
The banks are not getting any get-out-of-jail-free cards, claims against MERS and the securitization process are still very much on the table.
On the other hand, did I learn anything new about the massive frauds perpetrated by the banks? Not really.
There are pages listing what the government has now labeled as “Unfair, Deceptive, and Unlawful Loan Practices”.
The settlement does say that the banks violated federal laws, that they wrongfully denied modification applications, and overcharged for ‘forced place insurance, among other misdeeds.
It even finally acknowledges that the banks engaged in robosigning.
But these are things that my clients and I have long known.
If you’ve read the Wall Street Journal, or the New York Times, or any thorough news story on the housing crisis, there’s little in the mortgage settlement’s pages that will surprise you.
And that’s thoroughly disappointing. What the government has presented to the public is a complete white-washing of the robosigining and “fraudclosure” scandal. It acknowledges that the banks committed certain indiscretions yes, but I couldn’t find one concrete example, not one thorough examination of how it occurred.
(more…)
