About 1.5 million US properties are actively involved in the foreclosure process and bank-owned assets in the first quarter of 2013.
US banks have delayed payment owed to millions of victims of discrimination and substandard lending practices of the housing crisis, a report shows.
Millions of troubled American homeowners have received less than half of the promised USD 5.7 billion owed to them since 2008, the Washington Post reported this week.
However, the eight companies assigned to manage the process were paid nearly USD 2 billion.
Å“These settlements are a reflection of the dismal response from the federal government and the banks to consumers who got bad mortgages…Their needs got pushed behind taking care of the banks,” said John Taylor, chief executive of the National Community Reinvestment Coalition.
Following the housing crisis in 2008, a massive investigation revealed that many US banks were responsible for pushing unaffordable mortgages, issuing higher rates to minorities who were qualified for a better rate, having employees Ëœrobo-signâ„¢ foreclosure documents, and other offenses.
In 2012, the Justice Department found that banking giant Bank of America had illegally requested information from potential customers who requested loans.
The Federal Reserve found in 2011 that Wells Fargo is accountable for steering up to 10,000 customers into subprime loans even though they qualified for better rates. The bank has so far failed to compensate the victims.
Consumer advocates and lawmakers have criticized the delay, saying it is increasingly difficult for some borrowers to recover financially.
About 1.5 million US properties are actively involved in the foreclosure process and bank-owned assets in the first quarter of 2013.
GMA/KA
This article originally appeared on : Press TV