The truth comes out, this time from insiders with the contractors who were performing the :independent review" of foreclosures. Some tidbits from the article:
"We knew what we were looking at," said one employee. "But we were told
under threat of losing our jobs to not report what we saw."
"By the time the reviews were halted, the banks had paid the consultants they hired more than $1.5 billion." Too bad that money was never considered for helping families ......
"A consultant at Deloitte, hired by JPMorgan Chase to review its loan
files, said that his team simply didn't understand many of the bank's
processes, and weren't permitted to ask. "It was like trying to read a
book written in a foreign language," he said of initial attempts to
audit the bank's loans."
"All the while, this Deloitte employee said, regulators were pressuring
the auditors to hurry up -- pressure that trickled down to floor-level
reviewers. "Just hold your nose and click submit," he said one manager
"When news broke
that a new settlement to replace the reviews was in the works, the
Republican Chairman and Democratic Ranking Member of the House Oversight
Committee sent a letter to regulators asking for a meeting to clarify
exactly what was going on. Those institutions essentially ignored the lawmakers and, even after
they made the official announcement, refused to tell the congressmen
exactly what had happened in any detail. “The OCC and the Federal Reserve Board have terminated the
independent foreclosure review process without providing any explanation
of why or how the process was too costly and time-consuming to be
continued,” Rep. Elijah Cummings (D-Md.) said in a statement. “Even more
troubling, the agencies seem unable to provide any details regarding
the process by which compensation will be provided to borrowers who have
"It became pretty apparent that the whole project was a facade," said
one reviewer, whose job it was to look for improper fees tacked onto
The reviewer said she found some kind of bogus fee in every file she
looked at, ranging from a few dollars to a few thousand dollars. Another
who looked for errors that violated state statutes estimated that 30 to
40 percent of loan files contained mistakes. These reviewers said they
wanted their work to count for something. Last Monday, around 10 a.m., these same contract employees were told to stop what they were doing and leave the building. "Pencils down," one said he was told.