Irony: Gov’t foreclosure settlement checks bounce
posted at 12:18 pm on April 17, 2013 by Ed Morrissey
I swear, you just can’t do political satire these days, because reality turns out to be so much more ironic:
The foreclosure abuse settlement that was intended to speed relief to homeowners is ending as it began: with controversy and complaints that the program isn’t working.
On Tuesday, some of the first people to receive payouts under the $9.2 billion deal between federal regulators and the mortgage industry called into a government hotline to report that their bank would not cash their check, the Federal Reserveannounced in a press release. Though the unspecified problem was resolved, the Federal Reserve noted, the episode is likely to further erode confidence in a program that has failed to deliver on almost every promise made by federal regulators. …
Earlier this month, the Government Accountability Office issued a scathing report on the review process, finding that regulators did not provide proper oversight and that some errors likely went undetected. Regulators also recently released new information suggesting that banks may have made errors in as many as 30 percent of all loans that qualified for a review, a figure far higher than previously reported.
So … government is bankrupt? It’s at least overdrawn.