Same characters, continuing with rewarded favors.

HuffPo-

In the wake of the financial crisis, a number of the nation’s largest banks were excused from the government’s rescue program before they had returned to a position of complete financial security — in part because they wanted to avoid restrictions on how much their executives would get paid, according to a new report from the program’s government overseer.

Citigroup, Wells Fargo, PNC and Bank of America successfully lobbied to leave the federal bailout program early in 2009, even though the Federal Reserve Board and the Federal Deposit Insurance Corporation had recommended they take additional steps to shore up their assets, according to a new report from the Special Inspector General for the Troubled Relief Asset Program, a government watchdog office.

[HUFFINGTON POST]

June 21, 2011

The Honorable Darrell E. Issa
Chairman
Committee on Oversight and Government Reform
U.S. House of Representatives
Washington, DC 20515

Dear Mr. Chairman:

Today marks the six-month anniversary of my first letter to you requesting that the Committee investigate widespread and systemic abuses by mortgage servicing companies, including illegal foreclosures, inflated fees, and fraud against American homeowners. This is now my fourth letter to you on this subject.1

[…]

[ipaper docId=58481965 access_key=key-1l9y3r577fvic8q11q7t height=600 width=600 /]

Members of the committee questioned Special Inspector General Barofsky and others about the quarterly report on the Troubled Asset Relief Program (TARP) and Home Affordable Mortgage Program (HAMP) . Chairman Rep. Darrell Issa, (R-CA) Witnesses: Neil Barofsky, special inspector general for the troubled asset relief program Department of the Treasury Tim Massad, Acting Assistant Secretary for Financial Stability and Chief Counsel

House Committee on Oversight & Reform hearing on latest SIGTARP report:

http://www.c-spanvideo.org/program/Bailouts

Barofsky opening statement: http://oversight.house.gov/images/stories/Hearings/Opening_Statements/Testimony.Barofsky.SIGTARP.012611.pdf

Treasury opening statement: http://oversight.house.gov/images/stories/Hearings/Opening_Statements/Massad_Testimony_1.26.11.pdf

Ranking Minority Member Cummings opening statement barred from ‘live’ delivery by Chair Darrell Issa (R-CA): http://democrats.oversight.house.gov/index.php?option=com_content&view=article&id=5164:cummings-opening-statement-for-the-sigtarp-hearing-&catid=3:press-releases&Itemid=49

Documents and video should be posted later:

http://oversight.house.gov/index.php?option=com_content&view=article&id=1085%3Abailouts-and-the-foreclosure-crisis-report-of-the-special-inspector-general-for-the-troubled-asset-relief-program&catid=12&Itemid=20

January 2011 – SIGTARP quarterly report to Congress: http://www.sigtarp.gov/reports/congress/2011/January2011_Quarterly_Report_to_Congress.pdf

Via: Anonymous

This is fascinating. It showed up on the American Banker site this morning, which is not readable without subscription.

Contrary to the statement that these ‘counselors’ do not “track” follow-up, I recently received a request to fill-in a follow up e-survey which was oddly pre-filled out stating erroneously that I had not disclosed the identity of my bank during my “counseling” session.

I forwarded it to SIGTARP, COP, and the President with the relevant questions.

So… Could it be that counsel-obtained info via Hope hotlines could corrupt HAMP performance data, and/or disadvantage borrowers in litigation/settlement?

http://www.collectionscreditrisk.com/news/lender-tie-to-borrower-aid-3004375-1.html

Excerpt from article:

Some industry experts have questioned why a nonprofit affiliated with servicers is receiving government funding to resolve disputes between borrowers and the same servicers who are denying modifications. Several distressed homeowners who contacted American Banker said servicers refuse to give explanations for denied mods. Many were put into trial mods at a reduced payment but were later denied and are now in worse shape because servicers demand that any arrearages be paid in full for the loan to become current.