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Ear to the Ground

Three Banks Spanked for Subpar Mortgage Practices

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Posted on Jun 10, 2011
AP / Paul Sakuma

In a startling move, the Obama administration is holding three major banks—Wells Fargo, Bank of America and JPMorgan Chase—accountable for their bad lending habits on the mortgage market, cutting off funds from the Home Affordable Modification Program until they shape up.

While the other two megabanks are taking the hit, Wells Fargo plans to push back on the government’s decision, claiming that the evaluation was inaccurate and outdated.  —KA

Los Angeles Times:

After a review of the 10 largest mortgage servicers in its program, the Treasury Department found that Bank of America, JPMorgan Chase and Wells Fargo needed substantial improvement in correctly evaluating borrowers’ incomes — a key component of determining eligibility for the program.

Bank of America, the nation’s largest mortgage servicer, appeared to fare the worst in the administration’s evaluation. The bank also needs to make substantial improvement in identifying and contacting borrowers for the program, clearly demonstrating how the bank reaches its loan-modification decisions and ensuring the bank was receiving the correct incentive payments through the program, the government said.

Wells Fargo also was deemed as needing substantial improvement in contacting borrowers, in effectively processing and evaluating borrowers in accordance with the program’s guidelines and in ensuring the bank was receiving the correct incentive payments.

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By berniem, June 11, 2011 at 1:38 pm Link to this comment

Oh, such cruel and unusual punishment! Bradley Manning must have done something REAL AWFUL to be treated as he currently is even though he has yet to be charged, tried, or sentenced! Can anyone who cares for this nation honestly say that today they are proud to be an American?

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By tp, June 10, 2011 at 1:15 pm Link to this comment
(Unregistered commenter)

All three of this of these banks should have been nationalized almost three years ago. We bailed them out instead.
Knowing the full extent of their connivance and rehashing it would turn stomachs.
A revolution is in order as their is no representation anywhere.
A global strike is beginning on July 1st.
Check it out.
Go Wikileaks. Take note Truthdig. The truth is being dug by—-> >Anonymous<—-!
tp

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By Joseph Ramirez, June 10, 2011 at 1:12 pm Link to this comment
(Unregistered commenter)

Will the administration inform the millions of us (me included) who have been
waiting, sending the same doc over and over for months,  about what rights we
will have or what we can expect?  Are there new guidelines etc.?  “The 30 day
answer” about your modification was a joke!  At least CHASE, has totally
disregarded that requirement.  How are we to know that the government is
actually going to do something? Or is this just more bells and whistles, similar to
the way HAMP has been implemented from the get go.

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