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 'robo-sign' 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.
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