Monday, January 07, 2013 04:04 PM

NCRC Statement on OCC and Federal Reserve Settlement with Servicers

Washington, DC -- Today, in reaction to the announcement of an $8.5 billion settlement between the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board and ten banks, NCRC President and CEO John Taylor made the following statement:

“While compensation for homeowners who have been harmed is a good thing, it is unfortunate that the OCC has abandoned the Independent Foreclosure Review process for these banks. Although the Independent Foreclosure Review process has been deeply problematic, fixing it would have been a preferable strategy to ensure that banks are held accountable for each of their misdeeds. Regulators could have opted to improve the Independent Foreclosure Review process by enhancing outreach, enforcement and accountability mechanisms, and taking other steps to ensure that homeowners who have been harmed receive a fair review and fair payment for any financial harm as a result of bank abuses.”

“In terms of the actual monetary compensation involved, this settlement will not settle the score. In fact, it is likely that we will now never fully know the extent of the damage wrought on American homeowners without a case-by-case review. This settlement unfortunately allows these banks and the government to wash their hands of that responsibility. As much as everyone wants to turn the corner and put this period in American finance behind us, the truth is there are real people facing real problems who are being left behind."

About NCRC

The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America's working families. To find out more, visit http://www.ncrc.org