Over the last few years, private consultants were paid to review the shoddy foreclosure practices and investigate the financial misdeeds of the nation’s biggest banks. These consultants were paid in excess of 2 billion dollars, yet they were paid by the same banks that they supposedly investigated. As luck would have it, there have been hardly any payments made to homeowners as promised and it is now widely believed that the review process has been botched. it can safely be stated that it will not bring any meaningful results to homeowners or the housing industry.
Now, in a twist of fate, the Senate Banking Committee will be reviewing the entire foreclosure review process and other missteps made by at least two of the consulting groups, Promontory and Deloitte & Touche. The regulators are questioning the quality and integrity of the consultants’ work, primarily because there may be a conflict of interest since they are getting paid by the banks whose practices they are reviewing. The consultants, however, blame the Federal regulators on the delays, so it will end up as a finger pointing episode. The Senate Banking Committee plans to hold hearings in mid-April. Executives from Promontory and Deloitte are expected to testify.
Meanwhile, homeowners languish while waiting for their just compensation. Do not be optimistic that anything good is going to come out of this.
Contact Shaffer & Gaier
To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.