Fed: Banks Did Not Make Single Wrongful Foreclosure
Consumer advocates livid over finding
By Kevin Spak, Newser User
Posted Mar 11, 2011 10:52 AM CST
A bank owned sign is seen in front of a foreclosed home on December 7, 2010 in Miami, Florida.   (Getty Images)

(Newser) – The Federal Reserve’s probe into the robo-signing scandal and other abusive mortgage practices failed to turn up a single wrongful foreclosure, the Fed’s Consumer Advisory Council revealed yesterday. But many consumer advocates on the council, which is made up of outside experts, complained that the Fed had too narrowly defined “wrongful foreclosure,” with some expressing fears that the public wouldn’t take the review seriously, the Huffington Post reports.

The Fed defined “wrongful foreclosure” as the repossession of a home whose owners were not significantly behind on their payments. But that leaves out a host of cases in which banks made serious errors, like inflating past-due amounts, or having the wrong party bring a foreclosure action, panel members argued. “That homeowners were not delinquent has never been our contention,” said one member of the council. “Our contention is that many of these foreclosures were avoidable.”

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Showing 3 of 22 comments
Just_Dave
Mar 12, 2011 9:00 AM CST
If only there were some high ranking government official who could do something about this.
saucier111
Mar 11, 2011 2:44 PM CST
The blame goes to the senators and congressmen that deregulated ever safe guard we had.Housing and banking and imports etc.Yet they waste all there time on petty BS,abortion,gays,hate crime.We elect these people to fix the real issuses jobs,economy,budgets,deficient things that really matter.You can not even fix what brought our economy to its knees,one word.INCOMPETENT.
quersty
Mar 11, 2011 1:27 PM CST
So if my neighbor is delinquent and I march over to his house and "repossess" his house by force, even though I personally have no ownership rights or at least proof of ownership to the house, that is not "wrongful" foreclosure?