The report by the California Reinvestment Coalition’s Kevin Stein examines the performance of each bank in light of the regulations. The CRC works throughout California with non profit organizations charged with working with homeowners in accessing loan rewrites from the banks. The most recent survey sites data illustrating non compliance in several areas.
First, the banks are supposed to have a single point of contact. The report states that more than 70% of the counselors found that the banks were neither accessible, consistent nor knowledgeable.
Second, the report found that in 60 % of the cases Chase, B of A, Wells Fargo and Citibank, while having the client go through loan modification the banks were still trying to foreclose on them.
Third, CRC found that the banks were not completing the loan modifications and leaving clients hanging.
Fourth, the report states that the banks were taking longer to complete the loan modifications in accordance with the regulatory timelines.
Fifth, the banks were losing the papers for the loan modifications frequently.
Sixth, in 60% of the cases the major banks were actually losing the documents that the client had filed.
Seventh, they denied the loan modifications based on specious standards and outside regulatory standards.
Banks tended to make higher numbers of sub prime loans in poorer neighborhoods during the lending frenzy of 2006 – 2009. According to the report by CRC,the “big five” continue the pattern of discriminating against poor neighborhoods by making fewer loan modifications in poorer neighborhoods.
This explains beautifully why I started a petition: http://start2.occupyourhomes.org/petitions/seek-injunctions-to-enforce-settlement-terms-and-stop-the-foreclosures