With all of the talk about states (including California) diverting money from the $26 Million foreclosure settlement, the well respected Sheri Powers of The Unity Council brought up an interesting point. Why isn’t the OCC and/or the 5 servicers themselves intervening and telling the AGs or governors of the various states that they cannot divert the funds from counseling agencies or legal assistance entities assisting homeowners with foreclosure related issues? Was it a done deal that the AGs would be able to divert the funds before the deal was signed? Was there some back room deal cut somewhere? What gives here? Surly it is in the best PR interest of the servicers to have the money spent in such a way that would make the settlement more impactful for homeowners? Why isn’t the OCC jumping up and down and shouting “oh no you don’t!”???
We think that Sheri makes a great point here. Normally these days the banks will jump on any angle to maintain good PR with the public. But in this case we haven’t heard a peep. What gives?