Foreclosing on Americans

“Indymac has the worst performance in terms of foreclosure prevention. Very difficult to obtain any assistance. We had a client that was a victim of dual tracking and had their home foreclosed on.” -housing counselor in CRC’s 2012 survey of housing counselors across the US. 

Foreclosures OneWest

Photo credit: Bloomberg

When billionaires bought the failed IndyMac Bank, they were granted a controversial “shared loss” agreement with the FDIC, whereby the FDIC would “share in the cost” as IndyMac mortgages went bad and people lost their homes.  At a “community meeting,” community advocates asked the CEOs of OneWest and CIT Group how much money OneWest had received under this shared loss agreements.

The CEOs refused to answer, so we submitted a FOIA request.  According to the data we received, OneWest has received over $1 billion already, and the FDIC estimates it will pay another $1.4 billion before 2019.

Under the shared loss agreement with the FDIC, OneWest bank was supposed to try and modify mortgages where possible, using government mortgage modification programs. However, OneWest has foreclosed on an estimated 35,000 Californians during the past six years and was rated as one of the most challenging servicers to work with by California housing counselors.

How many foreclosure across the US?

Despite multiple requests to the banks and to their regulators (The Federal Reserve and the OCC), OneWest has refused to divulge how many foreclosures is has overseen at the national level.

Meanwhile, OneWest continues foreclosing on Americans across the US- check out CRC’s Foreclosure Tracker to see where people are losing their homes.

 

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