Regulator Explains Decision to End Flawed Foreclosure Review

Regulator Explains Decision to End Flawed Foreclosure ReviewA top regulator shed light Wednesday on his decision to scuttle an independent review of bank foreclosures, portraying the flawed process as a boon to outside consultants and a barren maze for homeowners.

At a luncheon speech in Washington, Thomas J. Curry, the comptroller of the currency, outlined the shifting stages of the independent foreclosure review. The process began in 2011 when regulators accused banks and other loan servicers of shoddy foreclosure practices.

Mr. Curry, who took over the comptroller’s office several months after the review started, argued that homeowners languished without payment as the review suffered from delays. The independent consultants that banks hired to run the 14-month review, however, racked up some $2 billion in charges.

“It just doesn’t make sense for these servicers to continue funneling money to consultants that could be better used to help distressed borrowers who have lost their homes,” according to a copy of his written remarks before the Women in Housing and Finance group.

Source: DealBook

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