ML/NJ
The fraud was committed by the Federal and state governments who went after the banks because they did not follow foreclosure procedures precisely enough. The issue never was that these foreclosures weren’t justified. These were mortgage borrowers who had DEFAULTED on their mortgages. The default rates were so high that the banks were cutting corners in order to process the mountain of foreclosures. Guess who is going to be paying these billions of dollars. It will not be the banks. The cost will be recovered by raising fees on bank customers, most of whom did not default on their mortgages.