Mortgage crisis settlement money is going to the wrong people

Source: Wikipedia

It turns out you can get something for nothing. More than 25,000 homeowners will receive checks from a mortgage lender compensating them for hurt they never suffered, according to an article in the Washington Post.

EverBank Financial, a Florida-based bank, will be writing the checks—each for roughly $1,000—despite the fact that there are no errors in the foreclosure files of those receiving checks. Meanwhile, some of those who were actually left out in the cold by a mismanaged foreclosure process have received only $300.

Read MoreNY state boosts aid for homeowners in distress

It results from what critics say was a haphazard and deeply flawed settlement agreement between the bank and regulators. Regulators urged banks to abandon the long and largely fruitless internal reviews meant to identify victims of mismanaged foreclosures. So, banks complied and have issued payouts to borrowers who were in any stage of foreclosure, even if they were not victims of the bank's mismanagement.

To read the full story in the Washington Post, click here.

Contact Mortgages


    Get the best of CNBC in your inbox

    Please choose a subscription
    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Latest Special Reports

  • Financial advisors stress that now is the time for investors to get serious about year-end financial planning checkup.

  • ore people are using e-tools and an array of a-la-carte advice services to self pilot their investments.

  • Famous founders reveal their secrets on how to build an iconic company—and change the world in the process.