by Calculated Risk on 3/02/2011 11:28:00 PM
Wednesday, March 02, 2011
Actually an update on the lack of progress ...
From Nelson Schwartz and David Streitfeld at the NY Times: Officials Disagree on Penalties for Mortgage Mess
The newly created Consumer Financial Protection Bureau is pushing for $20 billion or more in penalties, backed up by the attorneys general and the Federal Deposit Insurance Corporation.A key issue is what "$20 billion" means. Some regulators want the lenders to use the money to reduce principal for underwater borrowers or other modification efforts. Others argue that would be "a back-door bailout for delinquent homeowners" who weren't even harmed by the processing errors.
But other regulators, including the Office of the Comptroller of the Currency, which oversees national banks, and the Federal Reserve, do not favor such a large fine, contending a small number of people were the victims of flawed foreclosure procedures.
There is a long way to go - but it sounds like criminal charges are off the table.
Posted by Calculated Risk on 3/02/2011 11:28:00 PM