No Justice for Foreclosure Fraud Victims, Even After $25B Settlement

Six months ago state and federal regulators agreed to settle for $25 billion with banks in relation to numerous claims of lending and mortgage foreclosure fraud and abuse. What seemed to be a good deal for the alleged perpetrators of one of the most economically detrimental lending schemes in history has in fact proven to be a great deal for the alleged perpetrators.

From March 1 to June 30 138,000 homeowners with distressed properties have received some form of relief. However, that number mirrors the statistics from before the settlement in relation to homeowner assistance. In other words, roughly the same number of people are getting help with their distressed properties now as before the settlement, effectively demonstrating that no real substantial improvement has been realized due to the settlement. With close to 3 million properties in or near foreclosure, it is clear that very few homeowners are actually receiving the relief that they need.

Numerous regulators have promised results, but to date, few have had much to show for their promises. President Obama, back in January, promised an investigation into the mortgage and foreclosure abuses which have plagued courts across the nation. Little, so far, has come of this promise either.

Read more at the NY Times.