Lawsuit Filed Against Independant Foreclosure Review (IFR)

lawsuit 2
A lawsuit has been filed to get bank regulators to release more details on the failed
Independent Foreclosure Review (IFR) which was shut down after a year and a half and
costing over $2 billion.

The lawsuit was filed in U.S. District Court for the District of Columbia on behalf
of an unknown client seeking “All documents and/or records relating to the Office
of the Comptroller of the Currency (OCC) definition of independence” and “Any
documents and/or records relating to determining whether any particular independent
consultant…was or was not independent.”

The mortgage servicers and lenders had hired Promontory Financial Group,
PricewaterhouseCoopers, Ernst & Young and Deloitte & Touche to conduct the reviews.

In my article “Independent Foreclosure Review Botched?” published April 1st, I wrote
how “Promontory Financial, hired by Bank of America were reviewing Bank of America
loans at a Bank of America facility under the management of full-time Bank of America
employees. Bank of America reported those results to the ‘independent’ Promontory
Financial who based their reviews on what Bank of America gave them.”

That a lawsuit has been filed questioning the independence of the reviews comes as no
surprise. Consumers, homeowners, lawmakers and attorneys have criticized regulators
over the handling of the foreclosure reviews. Homeowners who are lucky enough to be
on the list to receive some type of settlement are angry and filing complaints the payouts
don’t match the wrongdoings.

The OCC and Federal Reserve shut down the reviews for most mortgage servicers
deciding instead, to provide about $9.3 billion in compensation. Postcards were mailed
out last month to eligible borrowers stating they would receive more information and/or
payments in about 4 to 6 weeks. Those payments are supposed be sent out beginning this
month and over the course of this year.

In December 2012, the OCC released five pages of redacted documents that related to
the reviewer’s independence and released information that could also be found on their
website. The OCC also stated new grounds for withholding additional information,
specifically not releasing inter-agency and intra-agency memorandums and letters.

Homeowners and borrowers saw the IFR as a way to finally have their voice heard on
the wrong that was done to them regarding foreclosures, robo-signing, wrongful fees
and other mistakes the lenders had made. Shutting down the IFR reneges on the OCC’s
promises to provide “appropriate compensation to borrowers who suffered financial
harm”. To date, under this new settlement, there still have not been definite answers

to how much relief will be given to the borrowers. Regulators have not released any
information as to how the payment amounts were determined. Without the reviews
there is no way to determine the extent of wrong done to each homeowner and what that
homeowner should receive in compensation.

Federal Chairman Ben Bernanke stated in congressional testimony in March that the
failed reviews should have ended sooner due to their costs. It’s sad that some or most
of that $2 billion wasn’t given as compensation to the homeowners instead of a failed
program. The money spent on the reviews was wasted since they weren’t completed.

Sadly, we will probably never know the degree of wrongdoings by the lenders and
mortgage servicers. Perhaps this lawsuit, and other lawsuits that are sure to follow might
shed a little more light on offenses and violations done to homeowners and borrowers.

Keith A. Gantenbein, Jr. is a Colorado consumer advocate attorney, foreclosure defense and real
estate attorney located in Denver and servicing all of Colorado. His foreclosure defense practice includes
foreclosure prevention, foreclosure assistance, loan modifications, short sales, and all other foreclosure
defense legal assistance. He also handles bankruptcies, mortgage negotiations, lender liability, real estate,
civil litigation, debt defense, debt harassment, contracts and landlord/tenant. If you think you will be
facing debt collection, foreclosure, or are in the foreclosure process, or have had a wrongful foreclosure,
contact Keith Gantenbein at (303) 618-2122 for a one-hour consultation where he will discuss your
situation and go over all your options with you.

About theglawfirm1

Gantenbein Law Firm is a Denver, Colorado Tax Law Firm, servicing all of Colorado. Gantenbein Law Firm also specializes in Colorado Real Estate Law, Colorado Foreclosure Defense, Wills & Trusts, and Business Law.
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12 Responses to Lawsuit Filed Against Independant Foreclosure Review (IFR)

  1. Stacey says:

    I received one of those postcards! Hope the compensation is in the thousands to try to recoup at least some of the financial damages!

  2. DJ says:

    Well not only did they take our home but we tried to negotiate or mediate something before they took it after we had sent the mortg servicer SUNTRUST the amount of money they specified they said we would be back on track. Western Unioned the money still took it and sold it for half of what we owed and we nor family were allowed to bid! ended up in divorce over all of this mess our home was specially built to accomodate my army veteran spouse and we got a check of a whopping $800! according to Attorney General it was supposed to be $106,000 for a veteran. Our house was only 5 years old and we borrowed $125,000 and it sold for 68! if they would have worked WITH us instead of AGAINST US we could have very well afforded that and then some! We did everything we were told to do and this is how things turn out? After the banks got all of their “BAIL OUT” money and took our homes on top of it! DO I hear rape pillaging and murder here?

  3. Pepper says:

    I want in. Seriously, Metlife screwed us over, not only once but twice. The feds really messed up when they let the servicers decide WHAT catorgory everyone went into. That’s like letting the criminal pick their penalty. They sent us 2K when it clearly should have been 50k and I have ALL the paperwork to prove it. So now, I want a part of any lawsuit that will bring us the $ that we are owed. If we had money to begin with, we would have done taken them to court a long time ago. I have followed the IFR since day one and this was a HUGE let down. Way to go Feds, Way to go. No wonder so many people cheat and lie because they are always the ones that get away with it. But when hard working honest people are involved, we always get screwed. F-You Metlife and by the way, stop sending me those god damn life insurance postcards. I will NEVER use them for anything, NEVER!

  4. annastacia diamond says:

    I want in this lawsuit

  5. Sad in MA says:

    Are there any details on how to participate as a plaintiff in this lawsuit?

  6. Ron says:

    i got paid only 4,000 but i want the lawsuit…. what can i do…..

  7. shasta says:

    The Administration and O.C.C. allowed the banks embezzle 90 billion dollars. If this is left to stand it is sad day for America.

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