Independent Foreclosure Review, Oh, It Is Worse Than You Thought!

If you missed the Senate hearing on – Outsourcing Accountability? Examining The Role of the Independent Consultant, you can see it HERE!

CHASEHOMEFINANCESUX SYNOPSIS OF THE “INDEPENDENT” FORECLOSURE REVIEW AND SENATE HEARING – The Banks, The OCC & The Feds created the Independent Foreclosure Review, not to help families, but to try and make themselves look better in the public eye, and to continue making blood money from the abuse of families, by paying their consultant buddies exorbitant amounts to review families documents, that are eventually never used. And here is how:

The Independent Foreclosure Review was suppose to reimburse 4 million families for the financial abuses by the banks, with regards to illegal manipulation of modifications and foreclosures, and to also hold the banks accountable for their wrongdoings. But here is what actually happened.

The OCC & the Feds were to hire “independent” outside consultants to look over the families files to determine if there were any criminal action by the banks, and to what degree. But the consultants that were chosen were not so “independent” and actually one of the consultants had worked previously in an upper position at the OCC, and one consultant group, that can’t be mentioned, because the OCC & the Feds won’t allow it, had just been charged with stacking the numbers in a banks favor in a large money laundering case, when they were suppose to be getting to the bottom of it and protecting the public’s interests not the banks’, sound familiar? Also, one of the consultants, Promontory Financial Group has recently hired a new employee, Mary Shapiro, who was the former Chairman of the Securities Exchange Commission, and more than 2/3rds of the top 170 executives at Promontory’s, are former regulators. So these are the families “Independent Consultants”.

Prior to this evaluation it was determined by the Fed & the OCC that 6.5% of families had been wronged, this was a lie, because the consultants admitted that this was not the correct percentage gave by the media, but could not elaborate because the OCC & the Feds have not allowed the percentage to be made public. The reason it is not made public, is because they found out that the percentage of abused families was much higher than previously thought, and the 3.6 million for compensation, in no way, cover the abuses, as Senator Elizabeth Warren put it, pennies on the dollars. SO AFTER SPENDING 2 BILLION DOLLARS TO CONSULTANTS TO LOOK AT 100,000 FAMILIES FILES, IT WAS SCRATCHED COMPLETELY!

So, two days before the checks were to go in the mail, and one day before this hearing, an IFR payment document shows up at the Fed’s website defining the abuse, the number of families abused , and the compensation for those abuses. All consultants admit that the day before the hearing was the first day any of them had seen this document, and in no way had any of them been involved with determining the numbers.

So who determined the numbers for the IFR payout? The banks’ servicers that stole from your families and mine, are the same ones that determined how we should be compensated for their abuses! I’M NOT JOKING! THIS IS EXACTLY WHAT HAS HAPPENED!

So this IFR foreclosure agreement, that was suppose to help families and make banks liable for their illegal actions, just made money for consultants, and currently shows the banks that they can rob and steal from their fellowman still, with little repercussions. So, it will continue, until true justice is met.

All this settlement does is tells 60% of families, that the years of abuse upon their lives by the banks, is only worth $300. I would like to know HOW all these consultant EXPERTS could not see that $300 does nothing to compensate 2.4 MILLION ABUSED FAMILIES. If the consultants had never been used, the banks could have given each one of the 100,000 families, that had their files reviewed, $20,000 for the abuse the bank did to them. But instead of giving the families this money they gave it to the consultants; 2 Billion dollars to look at 100,000 files, and gave most of these families $300! That is the math folks! It is truly AMAZING!

But there is a silver lining to this cloud; the total an utter patheticness with regards to this charade of an Independent Foreclosure Review, should make it easy for a family to sue for the abuses against them. This IFR was used to continue the abuse of American families instead of helping families, and also make consultants money, and in no way does it help families. So, this is just fuel for the fire, for anyone that pursues a court case.

I Urge Everyone That Turned In The IFR Paperwork For Review, To Call The OCC, The Feds and their Congressman, Demanding That They Turn Over To Each Family The Findings Of Abuse Conducted By The IFR Consultants. And That $20,000 Was Spent To Consultants Reviewing Each of These 100,000 Documents, That Resulted In Most Of These Families Getting $300. And The Families Deserve This Information To Use Against The Banks, To Determine If They Need To Bring A Lawsuit
Against Their Bank!

The Office of The Comptroller of The Currency – 800-613-6743

The Federal Reserve – 888-851-1920


Part I

25:30 – 30:00 – The Hearing Begins, Senator Sherrod Brown Opens

30:00 – 32:00 – Senator Elizabeth Warren opens with a discussion on how the Fed and the OCC have continued not to work with her and others in the Senate.

32:00 – 43:00 – The OCC & the Fed counsel Opening Testimony

41:00 – 46:00 Senator Sherrod Brown discusses that there were underperforming consultants, and that some instances some were being paid as much as $1,500 an hour to review. (Now Remember, This Was Paid To Consultants, To Spend Hours Reviewing A Family’s Documents, Where 60% Of The Time, The Family Receives $300 For The Abuse! Disgusting!)

46:00 – 60:00 Senator Sherrod Brown & Senator Jack Reed discuss with Daniel Stipano the excessive amounts for consulting, and the conflict of interest with the bank paying the consultants for the review, and the total failure of the 8 consulting firms work in the IFR process. And it is acknowledge during this conversation that the 2 Billion paid to consultants came from the banks, and was not paid out of the IFR fund. I am also curious about the statement from Jack Reed to Daniel Stipano, when Stipano talks about doing the IFR over again, Reed says, “You will have it to do over again.” I’m very interested in this statement.

60:00 – 1:09:00 – Senator Sherrod Brown again discusses with Daniel Stipano the underperforming consultants (Who We The Victims Can’t Know About!). This underperforming consultant, didn’t even have the staff to do the work, but got most of the consulting work. They had to outsource the work, to the point of outsourcing the work to the Philippines!

1:09:00 – 1:25:00 – Senator Elizabeth Warren discusses with Daniel Stipano & Richard Ashton that the percentage that the banks broke the law with regards to home loans and modifications that was determined early in the process, was way below the actual percentage of abuse done to families by the banks. And since the percentage was way off wouldn’t the compensation be way off? Richard Ashton discusses that it was one of the factors in determining to accept the IFR deal with the banks. But Senator Warren is quick to show that it is the main factor, and that the compensation does not meet the injustice. She discusses, in depth, the rate of bank illegal activity with regards to homeowners to find out the truth, and the OCC and the Feds can’t give her a correct percentage of bank error. Senator Warren calls out the OCC and the Fed for accepting the $9 million settlement, because they wanted to get it done quickly, and there was no random sampling of family damages. Senator Warren also makes it clear in her questioning with Daniel Stipano & Richard Ashton, that families may or may not get the information that was compiled during the IFR, especially when she states to Richard Ashton & Daniel Stipano, “So you have made a decision to protect the banks, but not a decision to protect the families?”

Senator Sherrod Brown closes with regards to Senator Warren’s and other senators’ points, “The public over and over, seem to think that this institution, the regulators, and the Senate & the House, or more interested in protecting the banks than the public.” And that he wanted this to be a start of a new error of transparency in helping families that have been wronged.

During this first panel discussion Daniel Stipano makes the comment, “Wrapping up the IFR” and Richard Ashton says, “. . . focused on getting cash to the borrowers as quickly as possible.” & “We gave up on looking at personal injury . . .” And then
Senator Warren calls it out stating, “But, the question is not getting cash to them in the form of $300, the question is getting the right amount of cash to the right people, the people who are the victims of the illegal activities of the bank. (CHASEHOMEFIANCESUX RESPONSE: I’m really beginning to like this Senator Elizabeth Warren)

Part II

1:45:00 – 2:01:00 – Opening remarks & testimony. In these opening remarks you find out that Mr. Konrad Alt, managing director for Promontory Financial Group, LLC, one of the “outside independent agencies”, use to work in a prominent position at the OCC. Sounds real INDEPENDENT!

2:01:00 – 2:11:00 – Senator Sherrod Brown discusses the scope of work done by the consultants, with the three representatives of the consulting firms that worked on the Independent Foreclosure Review. Konrad Alt & Owen Ryan didn’t have the totals and would get back to the hearing panel with those totals. James Flanagan was actually prepared and had the numbers – US Bank – $190 million, Citibank – $175 million and Sun Trust – $60 million were charged for there work with the IFR.

The consultants elaborate on there high standards when it came to doing there work; taking pride in there brand, working with high integrity, only using quality professionals.

2:11:00 – 2:17:00 – Senator Elizabeth Warren opens saying that the whole reason for this IFR was to help 4.2 million families that were abused and victimized by the banks, and bring some justice to the families. But also find the wrong doing and hold the banks accountable. She discusses how the OCC & Fed have failed the families and she humanizes it to the panel with some personal stories, to show them that there are lives involved in this abuse, this is not just numbers, this is abuse of Americans on a large scale, and the deserve justice. But the IFR is also supposed to hold the banks accountable for breaking the law. Senator Warren discusses how the three consultants looked over about 100,000 of the family’s files, and asked if the consultants had done a random sample, and the consultants had done a random sample, but the consultants could not disclose their error rate because the Federal Reserve & The Operator of the Comptroller of the Currency would not allow it. But Owen Ryan did say that the rate that was re was mischaracterized by the media. Senator Warren closes this questioning, stating that the consultants couldn’t give her the information needed to determine the numbers on which the Fed & the OCC had based their figures in determining what families should be compensated.

2:17:00 – 2:27:000 Senator Sherrod Brown discusses with the consultants if they would be willing to set some stronger standards with regards to description of qualifications and independence. They all agreed. I found James Flanagan’s statement interesting, “ . . . as was commented on by an earlier panel, take the learning from this exercise, and determine what additional standards can be put in place.” Poor choice of words Mr. Flanagan, this is not an exercise! This is an abuse of mass Americans, where people continue to make money from the abuse of families accept the families! Senator Brown also discusses with the consultants, a consultant group, that they couldn’t say who they were that was chosen to participate in the IFR, although they had been caught devaluing the abuse caused by a bank in money laundering just recently. They all agreed that prior experience should matter and be taken into account. Senator Brown also discusses how the banks pay the consultants, but they are suppose to be working for the people, and asks if it isn’t a conflict of interest. All consultants again discuss their high standards, although they were paid by bank servicers. Two of the consultants had used all in-house people to do the work, but Mr. Konrad Alt, who I have already mentioned, use to work for the OCC, and hired a number of people that were foreign nationals for the review.

2:27:00 – 2:32:00 – Senator Elizabeth Warren discusses the one page Independent Foreclosure Review Payment Details document released the day before this hearing. She discusses the columns of harm to families in this document, and that there are specific numbers of families shown in the various categories with various amounts they are to receive, and this document is suppose to resolve the abuse of almost 4 million families. Senator Warren asks all the consultants if any of their work had anything to do with where families were categorized on this sheet. All consultants said they had just seen the sheet the day before, and that none of their work had anything to do with where families were categorized or the amounts they were to receive, and they were not in any way ever consulted with regards to this IFR payment document. So Senator Warren deduces that the only ones left to determine where families fail on this scale of abuse were the same banks that abused them with absolutely no independent review! Owen Ryan said his understanding was that the banks were suppose to put the IFR payment document together and the OCC and Feds were to look at it. Thanks for LOOKING AT IT!!!

Senator Elizabeth Warren’s final words says it all, “It appears that the people that broke the law, are the same people who have determined who will be compensated from that law breaking. I find this one AMAZING!

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