Foreclosed on? Settlement 1.5 Billion Lost to "Independent Consultants"
Remember that Big settlement of 8.5 Billion dollars that the big ten banks had to pay for the mortgage mess providing 3.8 Billion back to homeowners who were fraudulently foreclosed on between 2009-2010 ? Did you know as part of the settlement the banks spent 1.5 Billion of the 3.8 Billion dollars on "independent consultants" to figure out how to get the money to the foreclosed homeowners?
After complaints to Ben Bernake that the process was taking way too long, the OCC/Fed is working out how payments are made through the servicers and not using the "independent consultants" after 1.5 Billion dollars! Most of the consulting dollars went to Promontory Financial Group. Guess who runs Promontory Financial Group: the former chairman of the OCC: Gene Ludwig.
More details of the 1.5 Billion loss can be found in this Forbes article.