It's fraudsters all the way down
Of course the foreclosure tests will be kabuki, just like the stress tests were. Read Yves for the takedown.
This is a great post because it contrasts, in detail, the lying from the weasels at Treasury about what will be done with subject matter expertise about what can be done. For example:
Get a load of this comment via Felix from [Treasury's lying D weasel Michael] Barr:
Barr told me that they’re doing file reviews which take between five and eight hours to go through a single loan file: this is hard, detailed work, and at the end of it all there will be a real understanding of what needs to be done—something necessary, if not sufficient, to finally resolve this mess.
Securitization professionals tell me that someone who was competent would not be capable of spending five, much the less eight hours on a loan file. This is proof that they are so clueless that they don’t have the foggiest idea of what is germane.
One might argue that the file reviews are taking so long because Treasury is also contacting borrowers. I find that unlikely given the language (”file review”) plus the difficulty of finding borrowers and getting cooperation, the compressed time frame, and the mechanics of doing large scale interviews (the herding cats process of drafting and getting input and sign off on the questions, determining who to interview, and documenting interviews means that each hour of interview time requires 3-4 hours total time, and note this is for a comparatively flexible fact gathering/conversational format, as opposed to the more rigid survey type of interview).
And, oh yeah, this two month review is going to take place over the Holiday season. I wonder which results are going to be released on the day before Christmas, and which on New Year's?