The modification mistake: Joseph Mason column

The modification mistake: Joseph Mason column

In recent weeks, state attorney generals in conjunction with the nascent Consumer Financial Protection Bureau (CFPB) proposed a broad settlement with the five largest servicing banks over potential damages in the foreclosure crisis.

Despite the Office of the Comptroller of the Currency’s determination that precious few foreclosures affected owners who had been making payments or even occupied the property, the keystone of the settlement is a $20 million penalty to fund principal modifications