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WASHINGTON — A Senate Banking subcommittee will examine the role of independent consultants in the financial services industry, including Promontory Financial Group, at a hearing next week.
April 4 -
The independent foreclosure review process was disorganized, ineffective and inconsistent, according to a draft report by the Government Accountability Office.
April 4 -
Promontory's connections and expertise turned the consultant into a private sector regulatory proxy. But those same strengths put the firm in the crosshairs after its role in the failed foreclosure review process and controversial work for MF Global and Standard Chartered.
March 15
WASHINGTON — Federal Reserve vice chair Janet Yellen blasted the aborted independent foreclosure reviews on Thursday, condemning the expenses of a process that the central bank helped set up.
"The money that we agreed on was being eaten up by very costly reviews and spending money for the consultants," she said during a question-and-answer session Thursday afternoon. "That turned out not to be a workable approach."
Yellen also said that, in hindsight, the Fed would "absolutely" have picked another process to remedy some of the biggest mortgage servicers’ foreclosure processes.
Her comments came hours after a
The reviews involved
"Once we were in the midst of it, it became clear that the review was serving actually to delay getting meaningful help to borrowers. This is obviously a development we were not happy with," Yellen said Thursday.
She was addressing a journalism conference hosted by the Society of American Business Writers and Editors at George Washington University.