Secret Docs Show Foreclosure Watchdog Doesn’t Bark or Bite
by Paul Kiel
ProPublica, Oct. 4, 2011, 11:26 a.m.
Why has the administration’s flagship foreclosure prevention
program been so ineffective in helping struggling homeowners get loan
modifications and stay in their homes? One reason: The government’s
supervision of the program has apparently ranged from nonexistent to
weak.
Documents obtained by ProPublica — government audit reports of GMAC, the country’s fifth-largest mortgage servicer — provide the first detailed look at the program’s oversight. They show that the company operated with almost no oversight for the program’s first eight months. When auditors did finally conduct a major review more than a year into the program, they found that GMAC had seriously mishandled many loan modifications — miscalculating homeowner income in more than 80 percent of audited cases, for example. Yet, GMAC suffered no penalty. GMAC itself said it hasn’t reversed a single foreclosure as a result of a government audit.
Documents obtained by ProPublica — government audit reports of GMAC, the country’s fifth-largest mortgage servicer — provide the first detailed look at the program’s oversight. They show that the company operated with almost no oversight for the program’s first eight months. When auditors did finally conduct a major review more than a year into the program, they found that GMAC had seriously mishandled many loan modifications — miscalculating homeowner income in more than 80 percent of audited cases, for example. Yet, GMAC suffered no penalty. GMAC itself said it hasn’t reversed a single foreclosure as a result of a government audit.
posted by Dictynna @ 7:39 PM
0 comments
0 Comments:
Post a Comment
<< Home