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Posted at 11:15 AM ET, 02/17/2011

U.S. regulators preparing to sanction banks for foreclosure violations

By Ariana Eunjung Cha

U.S. regulators are preparing to sanction some of the 14 largest, federally regulated banks for "critical deficiencies and shortcomings" in foreclosure procedures, Acting Comptroller of the Currency John Walsh testified on Thursday.

In remarks before the Senate Banking Committee, Walsh said that a multi-agency task force had concluded its examination of the banks and found violations of state and local foreclosures laws, regulations and rules.

The group identified a "small number" of foreclosure sales that had gone through improperly, he said.

However, Walsh said investigators also found that the borrowers who were in foreclosure had seriously delinquent loans and that servicers had legal standing to foreclose.

He said that the federal government is finalizing sanctions and other remedial action that it is taking against the banks. It is discussing the actions with the 50 state attorneys general who are separately investigating claims of improper foreclosures.

Walsh said that the goal is to establish nationwide requirements for foreclosures and to "comprehensively and finally" resolve "the full range of legal claims arising from the mortgage crisis."

By Ariana Eunjung Cha  | February 17, 2011; 11:15 AM ET
Categories:  Congress, Housing  
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Comments

Fraud is a crime, so the heads of these mega banks should do some time. How about a little RICO when we need it?

Can't prosecute if you want more contributions can you Obama?

Posted by: wesatch | February 17, 2011 11:57 AM | Report abuse

Sanctions? We want criminal indictments handed down. This wasn't a one time incident these people created the largest fraud event ever committed to this date. Tens of thousands of wronged homeowners are still waiting for these guys to be indicted. The sheer volume of fraud and perjury involved should have put Obama into the forefront pushing for indictments. Instead today we are hearing of sanctions? This won't play out well at the polls in 2012 I'm telling you that voters will punish those who allow these banks to get off with "sanctions".

Posted by: Desertdiva1 | February 17, 2011 2:14 PM | Report abuse

why wont the banks just help the homeowners, just like the tax payers did for them

Posted by: Anonymous | February 17, 2011 2:31 PM | Report abuse

Why am I not surprised the OCC is not going to do anything?

We filed a complaint with the OCC in the fall regarding the fact that our house was illegally foreclosed on by CitiMortgage and its law firm, Brice Vander Linden & Wernick - and then the house was purchased by what appears to be an employee of the law firm that illegally foreclosed immediately after the foreclosure.

Imagine our surprise when, after filing our OCC complaint, we started getting calls from some low-level Citi employee who seemed to be an off-shored staffer.

Apparently, the OCC literally handed off our complaint to CitiMortgage to self-investigate.

The sum of that investigation was we made multiple calls to Citi staffers that weren't returned. When we *did* finally talk to them, they were belligerent, rude and ignorant of US and Texas laws governing foreclosure.

A Citi employee said that they didn't have to follow state law regarding sending out the Notice of Sale (which Citi and its law firm *didn't* do before they illegally foreclosed) and said they could just take our house at any time if we were at all delinquent.

And he said it was OK that Citi illegally entered our house after the foreclosure, removed our property, made changes to the house, listed it for sale -- and then refused to allow us access to the house or retitle it back to us.

Seriously.

Turns out that the person who purchased our house (yeah, the same one who appears to work at the law firm that illegally foreclosed) may have bought it at a fire-sale price.

It was appraised at $315k and homes have been selling for around that price with relative ease. It was listed at $289k -- but looks like it may have sold for $100k less than that.

Oh - and the house was listed for less than 30 days before they pulled it so this apparent employee could get the fire-sale price --- even though they *could* have gotten enough to satisfy the lienholders.

I guess that may just be one of the perks for working for these foreclosure law firms.

Oh - and about the OCC? We have NEVER heard any follow-up from the OCC about our complaint.

And CitiMortgage? We still haven't gotten any answer from them about the illegal foreclosure and the subsequent purchase by what appears to be an employee of the law firm that illegally foreclosed.

Didn't hear from Fannie or HUD either.

We bailed these guys out -- and they showed their gratitude by throwing the American people out of their homes.

Then again -- are any of us really surprised that the banksters are doing this -- and that the regulators are turning a blind eye to it?

www.ourforeclosurestory.org

Posted by: bluebonnetsandbbq | February 17, 2011 2:45 PM | Report abuse


A small number sales didn't follow proper procedure but the borrowers were "seriously delinquent". Foreclosure was still the proper course of action.

Posted by: kitchendragon50 | February 17, 2011 2:49 PM | Report abuse

Bank of America should be siezed by the FDIC and sold off today.
They are well below their regulatory minimum reserve requirement if you mark them to market and it's time for an example demonstrating the limits of what remains of America's patience.

Posted by: JohnRCarroll | February 17, 2011 2:52 PM | Report abuse

"He (Walsh) said that the federal government is finalizing sanctions and other remedial action that it is taking against the banks. It is discussing the actions with the 50 state attorneys general who are separately investigating claims of improper foreclosures.

Walsh said that the goal is to establish nationwide requirements for foreclosures and to "comprehensively and finally" resolve "the full range of legal claims arising from the mortgage crisis."
------------------------------------
So are we giving a "free pass" to those banks that utilized MERS (a database) and claimed MERS was not only a lender but owned the associated mortgage Note? And what of those fees traditionally paid to the states and cities for mortgage filing that were avoided by using MERS? And the robo-notaries that committed perjury?

So we're passing a law making all the shortcuts the banks took during the real estate "bubble" retroactively legal? Whatever happened to the rule of law?

Posted by: Anonymous | February 17, 2011 3:43 PM | Report abuse

The ultimate sanction would be to force the banks to write down the value of the mortgages on their balance sheets.

Posted by: Anonymous | February 17, 2011 4:42 PM | Report abuse

This is truyl turning the rule of law on its head. MERS has no legal standing in a foreclosure yet they are foreclosing with vigor all over the country. Banks and their lawyers have repeatedly violated state law and the Federal govt is going to try to do an end around.
One more notch on grip for the corporate oligarchy.

Posted by: Anonymous | February 17, 2011 5:26 PM | Report abuse

Are you sttil thinking that the social society(lead by lobbies or factual powers which isd the same thing specially in the USA) can bring ethic, justice and efficence? are you still dreaaming? yes, You are while catching the dairy ration they make for uou. He, he. Stupid dream. They never let you to be as they are.

Posted by: Anonymous | February 17, 2011 7:30 PM | Report abuse

Well. If fraud is crime an your authoties are thinking it is not then is a good time to say something about. You are the sovereignt of the USA. Go. Be brave for a day.

Posted by: Anonymous | February 17, 2011 7:34 PM | Report abuse

Being brave? Why? I have enough. My dairy needs are full. I can get even luxury7 enough. Being brave? What is that? Yes. I am really blind and I love it. What were you talking on?

Posted by: Anonymous | February 17, 2011 7:44 PM | Report abuse

yo, John Walsh. Nice little OCC you have there. Would be a shame to see anything happen to it.
Like, for imstance - let's just say that you stopped peddling the banks "well they were behind anyway so whatevs" line about f.c.?
What is you addressed the hundreds of thousands of emails, letters and phone calls that banks *admit* making to homeowners telling them that HAMP was only for delinquent borrowers? And urging them to stop paying if they wanted a shot at a loan mod?
And *then* slamming them into f.c., which even BAC's sketchy mtg. chick admitted they did.
How 'bout that?? The banks created pools of customers for its toxic product (sound familiar, John??) and then proceeded to ram them thru the system.
The loan mod program was molasses slow but the f.c. mill was well-greased. So - surprise!! - lots of people got drop-kicked to the curb for simply trying to participate in the HAMP deal.
See propublica.org for many stories, including that of a retired pastor, a cancer victim and a juv. court judge who all fell prey to this scam.
Yo, John - are you with me? Rouse yourself, man up and actually look into the problem. It's been two years. You should have a handle on this by now.
Get to work.

Posted by: Anonymous | February 17, 2011 10:06 PM | Report abuse


Mortgage refinancing means re-funding the mortgage loan with better terms as well as conditions, most likely from a different lender. It is one way to save money. Search online for 123 Mortgage Refinance they found me 3.1% refinance rate and also gave free analysis of my mortgage.

Posted by: donnwhite75 | February 18, 2011 4:17 AM | Report abuse

"A small number sales didn't follow proper procedure but the borrowers were "seriously delinquent.""
Proper procedure would include having status to foreclose. Kind of like witnessing a murder and then executing the perp myself because I knew he deserved it.

Posted by: Anonymous | February 18, 2011 11:12 AM | Report abuse

John Walsh is having an after OCC investigation party at the Ritz.

Those in attendace
Barney Frank, Dimon, Monaghan, OCC Staff, Federal Reserve, and the SEC and more....

They will be roasting some of those "dead beat" borrowers and the Constitution later out back.

RSVP

Posted by: Anonymous | February 18, 2011 3:49 PM | Report abuse

America. Land of the fee. Home of the debt slave.

Posted by: ian807 | February 19, 2011 2:06 PM | Report abuse

Yesterday on internet radio show "Center Stage," the topic was "How Can I Stop My Foreclosure." It was unbelievable, the information that came out on that show. These big banks like Bank of America, Wells Fargo, JPMorgan and Citibank and their loan servicing companies should all be jailed for this mortgage crisis, they are no different than Bernie Madoff. They said 85% of the foreclosures should not have happened, take a listen.

http://www.blogtalkradio.com/centerstage/2011/02/19/can-my-foreclosure-be-stopped

Posted by: Anonymous | February 20, 2011 11:50 AM | Report abuse

GET READY TO SEE THE LENDERS PUNISHED. SEND THE CHILDREN OUT OF THE TV ROOM. VIEWER DISCRETION WILL BE HIGHLY ADVISED.

THE OFFENDING LENDERS WILL BE PUBLICLY FLOGGED WITH A FEATHER DUSTER.

THE OFFENDING LENDERS GET TARP MONEY AND AN ADMONITION NOT TO MISBEHAVE UNTIL NEXT TIME.

THE BORROWERS GET THE HIGHWAY.

THIS CONFIRMS THAT A BLOODLESS COUP HAS OCCURRED - AND WE ARE NOW LIVING IN A CORPORATE STATE.

DIDN'T WE ONCE GO TO WAR WITH THE FASCIST STATES? NOW - AS THEY SAY IN EBONICS, "WE BE ONE."

MEANWHILE - LET'S GO AHEAD AND CHANGE OUR COUNTRY'S MOTTO FROM "IN GOD WE TRUST" TO "EVERY MAN FOR HIMSELF."

AND WHILE WE'RE AT IT, LETS REPLACE OUR NATIONAL ANTHEM, THE STAR-SPANGLED BANNER, WITH THE DIRE STRAITS' HIT, "MONEY FOR NOTHING."

IGNORE WHAT OUR CONGRESS SAYS AND WATCH WHAT THEY DO. TO FIX THE DEFICIT, THE CORPORATIONS WILL GET LOWER TAXES

(BECAUSE THEY'LL USE ALL THAT EXTRA MONEY TO CREATE JOBS - BUT MOST OF THEM IN RANGOON)

AND THE MIDDLE CLASS WILL GET HIGHER TAXES, FEWER DEDUCTIONS, AND RESTRICTED STUDENT LOANS.

WE ARE NOT AT WAR IN AFGHANISTAN. OUR GOVERNMENT IS AT WAR WITH THE MIDDLE CLASS AND ITS "OPEN SEASON" ON YOU.

AS BOB DYLAN SAID,

HOW DOES IT FEEL

TO BE WITHOUT A HOME

A COMPLETE UNKNOWN

LIKE A ROLLING STONE?

Posted by: Ranger6 | February 22, 2011 10:25 PM | Report abuse

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