Office of the Comptroller of the Currency to Investigate Faulty Foreclosures

Posted on October 4, 2011


Comptroller of the Currency

“The Office of the Comptroller of the Currency (OCC) is initiating a review process that will be open to borrowers who were in some state of foreclosure in 2009 and 2010–a time when many were harmed by lender improprieties such as robo-signing documents to speed up the eviction process.

John Walsh, acting head of the OCC, unveiled some aspects of the planned review in a speech last month to banking executives. In the speech, he said the agency was exploring “the best means of ensuring that injured homeowners had the opportunity to seek relief.”

The OCC says it will oversee the process, which could be unveiled as soon as the next few weeks. Currently, regulators estimate 4.5 million borrowers could be eligible for review.”

This review would be done by third party companies, and those are the companies who would determine the amount of compensation a homeowner would have if a problem were found during the audit of their loan.

It sounds good, but I am dubious. When they take government functions and offload them to private companies, it usually means that implementation is going to be the opposite of the stated intentions of the program.

I am not optimistic.