Green Room

Irony: Gov’t foreclosure settlement checks bounce

posted at 12:18 pm on April 17, 2013 by

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.

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Cindy Munford on April 17, 2013 at 12:21 PM

US Treasury implements OverDraft Protection scheme for Treasury debits; money is withdrawn from the recipients’ account to cover the check.

BobMbx on April 17, 2013 at 12:37 PM

They also aren’t paying the settlement amounts that were agreed to. Most people were promised at least checks of $840 and what they are really getting is $300.

HopeHeFails on April 17, 2013 at 2:52 PM

Quick, call the Chinese for a covering loan, just until we can deposit their money into…oh…wait…

Amendment X on April 17, 2013 at 5:15 PM

HopeHeFails on April 17, 2013 at 2:52 PM

The difference is for the taxes owed on the windfall.

chemman on April 17, 2013 at 5:34 PM

The difference is for the taxes owed on the windfall.

chemman on April 17, 2013 at 5:34 PM

Private consultants for the government got $2B dollar out of the $9B dollar settlement.

RickB on April 17, 2013 at 6:29 PM

He was heard yelling “I can’t be overdrawn, I still have checks!” as he ran to the Treasury Department to tell them to “Print More Money”!

FloridaBill on April 17, 2013 at 7:18 PM

more info! although it was stated that the minimum payment would be $500.00 It of course turned out to be $300.00 well that’s not true either because it is $300.00 per signer on the original deed, not per property. let me try that again. If you signed for the property you got $300.0 If you went in on it with 9 other friends, you each got $300.00 for a total out lay of $3,000.00 for the same property. Go figure, these guys got the big buck and good jobs.

jpcpt03 on April 17, 2013 at 8:05 PM

One more time! Originally stated that the cost of doing the settlement would not be born by the settlement but would be be paid by contract from the US government. The settlement was nearly $24 Billion, nearly $15 Billion or 64% went to these reviewers anyway.

jpcpt03 on April 17, 2013 at 8:14 PM

Smart Power!

Mimzey on April 17, 2013 at 8:40 PM

Its Boooshes fault.

kemojr on April 19, 2013 at 6:32 PM