Mind-boggling: Pundit Says No Homeowners Were Wrongfully Foreclosed

Mind-boggling: Pundit Says No Homeowners Were Wrongfully Foreclosed Two huge settlements with the biggest U.S. banks — dubbed the National Mortgage Settlement and the Independent Foreclosure Review — involved millions of wronged homeowners thrust into foreclosure. But that’s not enough to convince Wall Street Journal editorial board member Mary Kissel.
She was adamant about this mind-boggling claim she made during the October 11 edition of Fox Business’ Varney & Co.
“There hasn’t been a single homeowner identified who was foreclosed on who shouldn’t have been foreclosed on — somebody who was paying his bills,” Kissel said. See video clip below, courtesy of MediaMatters.org.
Since the foreclosure crisis erupted in 2007-2008, federal investigations prompted by homeowners and consumer advocates have found more than a million homeowners who have faced potentially wrongful foreclosures.
Actually, Ms. Kissel could have gone over to the website of the Office of the Comptroller of the Currency, one of the bank regulators, to see the payout framework released by the OCC. The framework slotted borrowers in a sweeping compensation range from $300 to $125,000.
The top category reads as follows:

“Servicer foreclosed on borrower eligible for Servicemembers Civil Relief Act (SCRA) protection (applies only to rescinded or completed foreclosures).” More than 1,100 borrowers qualified under this category.

There is also this category:

Servicer initiated or completed foreclosure on borrower who was not in default. Nearly, 700 borrowers qualified under this wrongful action.

There is also this category:

“Servicer initiated or completed foreclosure on borrower who was protected by federal bankruptcy law.” Nearly 30,000 borrowers qualified for this category, according to regulators.

Ms. Kissel could continue to argue that most of these above-mentioned borrowers may have been late on payments to trigger the initial servicer action.
But since regulators have not released details behind the payout framework categories, covering more than 4 million borrowers who faced foreclosure abuses, it would be impossible to verify the late-payment claim.
She could take the word of hundreds of thousands of borrowers who have legitimate claims of being denied servicer assistance, or she can side with a handful of the biggest banks in the nation behind the “robo-signing” and other foreclosure abuses outlined by federal agencies, state authorities, consumer advocates and the borrowers themselves.

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