Just When You Thought that Mortgage Servicers Could Not Get Any More Evil…

Now we have reports of them sending in crews to break into houses and change locks when they have not foreclosed on the property, in one case stealing electronics, wine, and beer, and in another, throwing out the ashes of the homeowner's husband. (surprise, there is now a lawsuit)

It's clear that something needs to be done about the criminal (breaking and entering and theft) activities of the mortgage services, but it appears that if you are the Federal Reserve, what needs to be done is to fight the rest of the government to protect the people who are breaking the law:

Top policymakers at the Federal Reserve are fighting efforts to rein in widely reported bank abuses, sparking an inter-agency feud with the FDIC and the Treasury Department. The Fed, along with the more bank-friendly Office of the Comptroller of the Currency, is resisting moves to craft rules cracking down on banks that charge illegal fees and carry out improper foreclosures. The FDIC supports such rules, according to an FDIC official involved in the dispute.

The new regulations would rein in debt collection, loan modification and foreclosure proceedings at bank divisions called "mortgage servicers." Servicers have committed widespread fraud in the foreclosure process. While the recent robo-signing of fraudulent documents has received the most attention, consumer advocates have complained about improper fees and servicer mistakes that lead to foreclosure for years.

This is what happens when you put an organization that is chartered to protect and support banks in charge of regulating them.

Instead of reigning in excesses, they validate those excesses, so the Fed is attempting to throw away something like 300 years of established property law so that the banksters can take you house for no reason at all.