2012-11-12nakedcapitalism.com

Every time it appears that the OCC foreclosure reviews have hit bottom they sink further into the morass. Our latest example comes from a petition GMAC/ResCap filed as part of their bankruptcy. This example shows how banks are spending simply staggering, implausible amounts of money on foreclosure "reviews", and how keen they are to enrich anyone other than wronged borrowers. Given that some of these foreclosure reviewers are also in the business of "scrubbing" loan files and creating (as in fabricating) allonges, you have to wonder whether the amount of money being spent is not on review but also "remediation" and is being bundled in with the review costs. Think of the twofer: you get to call your chicanery something else, and blame the cost on the banks' favorite scapegoat, those big meanie regulators.

This information comes from a petition GMAC/ResCap filed as part of their bankruptcy and exposes the multiple and pricey roles being played by PriceWaterhouseCoopers


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