Blah, blah, blah. They don't get it, they will never get it because there is no incentive to getting it. Better to fine the frauds and keep your own agency (OCC aka "Old Corrupt Conspirators") awash in CA$H. Create job security for yourself. Slap on the wrist, here's your fine and have a nice day! Boo! Hiss!
"Both The Wall Street Journal  and Huffington Post  reported this morning that the OCC wants to go easier on the banks than other regulators, specifically the FDIC. The OCC has proposed "relatively modest fines," reports the Journal. It's not clear what would be considered "modest" for a bank the size of Bank of America, the largest servicer, and one with a poor track record .
In his testimony Walsh said some servicers are worse than others, and the penalties will be tailored accordingly. It's also unclear when regulators will decide what the punishments should be.
As we've reported, the administrations' mortgage modification program has faltered in part because it relied on the banks' voluntary participation . Servicers violated the program's rules with no consequences. The Treasury Department has said it's powerless to punish servicers. But federal regulators like the Federal Reserve, OCC and FDIC have clear authority to punish banks for violating laws.
There are signs in Walsh's testimony of the OCC's more favorable views toward servicers. A review of about 2,800 homeowner foreclosure cases, he's careful to say, found that servicers had indeed been "in contact with troubled borrowers and had considered loss mitigation alternatives, including loan modifications." Only a "small number of foreclosure sales " were illegitimate, he said. The people in foreclosure were actually delinquent.
What Walsh's analysis misses is the possibility that homeowners fell behind because of their servicer's errors . For example, homeowners have been pushed into delinquency after the servicer wrongly told them that to be considered for a modification they should miss payments."Despite Finding Big Problems in Mortgage Industry, Regulators’ Punishment Unclear