Mention the Justice Department and people pay attention…
So if the DOJ says something about foreclosures, it may be possible that the banks and Wall Street will pay attention. Why? If we are hoping that someone can hold them accountable for robosigning and fraudclosure, then it could be the Justice Department…
So this makes the report from the Justice Department entitled Foreclosure Mediation: Emerging Research and Evaluation Process extremely interesting. Especially since it appears the Justice Department is calling for fewer foreclosures just like the Federal Reserve.
The Justice Department said that the federal government needs to take additional steps to support well-structured foreclosure mediation programs by:
- Supporting research and evaluation of state and local foreclosure mediation programs through funding and technical assistance
- Establishing federal guidelines for foreclosure mediation programs, and providing technical assistance to assist state and local programs to meet them
- Funding, perhaps on a matching basis, mediation programs that meet established federal guidelines
- Establishing a template that contains uniform data points for collection that foreclosure programs can adopt
- Requiring that federally-backed loans go through mediation before foreclosure can take place
- Improving escalation processes for federal loan modification programs, to allow intervention in individual foreclosure mediation cases where necessary to achieve an agreement.
- Encouraging banking regulators to allow states to implement mediation interventions without the threat of intervention by the banking industry
Will any of these suggestions happen? Hard to say and considering the political muscle the banks have, it is going to take powerful people in high places to change things.
Maybe with help from the Justice Department there will be Justice for All…