Four Whistleblowers Who Sounded the Alarm on Banks’ Mortgage Shenanigans by Cora Currier for ProPublica Buried in the sweeping mortgage settlementwith banks, for which final documents were filed this week, are five whistleblower casesthat shed light on the litany of foreclosure abuses by […]
Yet the Obama administration bet the success of its foreclosure prevention program on the ability and willingness of that same troubled industry to help homeowners -- and lost. The program, overseen by the Treasury Department, has been characterized largely by lax enforcement and deference to banks.
“At some point, Treasury needs to ask itself what value there is in a program under which not only participation, but also compliance with the rules, is voluntary,” says the new report, from the special inspector general for the TARP. “Treasury needs to recognize the failings of [the program] and be willing to risk offending servicers.