Friday, March 1, 2013

Dave Dayen: Servicers Committed Loan Error Rates of Either 4.2% or 97.2%, Take Your Pick « naked capitalism

FASCINATING article on why the initial Independent Review (conducted by banks in settlement to the 50 state AG investigation) could pull in such low error rate.  I remember the shock of hearing that they could not find fraud in most of the foreclosures. YEAH RIGHT!!!!!   Anyone sitting in a forcible detainer coutroom in AZ could wall paper a room with the false documentation and illegal activities right in the courtroom. Having a judge tell people to go home there is nothing they can do, or one bank lawyer testitfhing over a stack of paperwork for two or three banks (whose lawyers couldn't make it ) that all is in order - well what BS is that?  Telling people nothing they can do when they had the load modification APPROVAL (rare to see) in hand dated days before a foreclosure sale took place, is INSANE!!!

 Thanks Naked Capitalism for another great article.

Dave Dayen: Servicers Committed Loan Error Rates of Either 4.2% or 97.2%, Take Your Pick « naked capitalism: "How lucky for OCC that the one bank which presented a near-perfect record submitted the most reviews!
It doesn’t pass the smell test at all that you would get such a wide discrepancy, and in particular that JPMorgan Chase would show itself to be such a precision servicer. I remember attending a NACA event where they gave out Jamie Dimon’s cell phone number to homeowners, urging them to call and harass him over the abuse his bank had exhibited on borrowers. They were seen as uniformly the worst by a wide margin.
But of course, as ably documented in this space, the entire concept of real numbers from the reviews is fanciful. When you talk to the actual reviewers, as WSJ did for their story, you get error rate numbers as high as 80%. And the files themselves were kept in such disarray that it borders on impossible to grade them at all"

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