Thomas Curry, head of the OCC since 2012 (it had an acting head since 2010), was the person Senator Warren addressed in the banking hearing. The process was costly and ineffective.
To accelerate the payments, the comptroller’s office decided to cut out the middlemen, the consultants, from the reviews. In a conference call last week, the government outlined a plan to use the lenders instead, according to people with direct knowledge of the discussion. Banks will now have to assess each loan for potential errors, which will help determine the size of the payments to homeowners.
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Despite billing for roughly $2 billion in fees in the 14-month review, consultants examined only a sliver of the 500,000 complaints filed by homeowners, people involved in the matter said. Their efforts were stymied, in part, because regulators urged consultants to first scrutinize a random sample of the four million foreclosures before digging into specific homeowner complaints, the people involved said. The decision, the people said, may have undercut the scope of the settlement and potentially deprived homeowners of additional relief.
Consultants were also criticized for a faulty review process.
Some consulting firms, including the Promontory Financial Group, farmed out much of the work to contract employees. Others faced questions about their objectivity. The consultants, critics note, were paid billions of dollars by the same banks they were expected to police.
Some consultants say they sounded repeated alarms about the process. Last spring, a group of consulting firm executives met with comptroller officials in Washington to voice concerns that the reviews were too narrow, according to people with direct knowledge of the meetings....The review process, with its narrow focus, was created by the comptroller’s office in 2011, under previous leadership.
http://dealbook.nytimes.com/2013/02/12/big-banks-are-told-to-review-their-own-foreclosures/When regulating agencies don't do their jobs, it really screws things up.
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