The Consumer Financial Protection Bureau is finally trying to flex its muscles. They’re tasked with protecting consumers from being taken advantage of by big corporations but lately it doesn’t look like they’ve been keeping very busy. Though recent news might change my opinion.
Apparently a Michigan bank wasn’t making foreclosure prevention programs available to homeowners. They delayed loan mods, misplaced foreclosure relief applications, and failed to notify borrowers of critical information. That’s downright shameful and they’ve been fined $37.5 million in penalties.
Now in these kinds of situations I’m always bothered by 2 things.
1) Where is this money going to go if it ever gets paid? Will it really help the victims? $10 million is already earmarked to go right to the CFPB.
2) I’m definitely not in favor of foreclosure but I personally know of so many better options for most people than these so-called relief programs.
So I’m kind of torn. I don’t want banks evading the law for their own profit. But I think a responsible bank would make other foreclosure alternatives, like short sales, available to distressed homeowners along with the normal slew of loan mods and extensions.
Is that really too much to ask?