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Officials Disagree on Penalties for Mortgage Mess

Punishment for abuses by mortgage companies is now being disputed by state attorneys general and regulators. The Consumer Financial Protection Bureau, with support from the AGs and the FDIC, is suggesting that banks be hit with $20 billion or more in penalties. Regulators such as the Office of the Comptroller of the Currency see it differently, however, and believe that banks should not suffer such large fines. As the scope of the existing problems becomes clear, regulators can see opportunities for fixing systemic flaws. This article covers the challenges that these opposing groups have to overcome.

SOURCE: The New York Times, 3/3/11