The senator and his wife have said that the investigations are politically motivated, and it is not disputed that the vice-chairman of the Vermont Republican party, Brady Toensing, likely got the ball rolling when he wrote a letter to the U.S. attorney for Vermont as well as to the Federal Deposit Insurance Corp. in January of 2016 asking that they investigate the loan.
From what I've read, the FDIC is investigating the loan documents. Will it rise to the level of a crime? That's for the DOJ to decide. I trust the FDIC to perform a thorough investigation.
Remember the loan servicer Ocwen? Their stock price took a major hit a month or so ago, when it was announced that the CFPB and several states were taking them to court.
The FDIC was aware of issues with Ocwen several years ago. For about a year, they were an FDIC contractor to service home mortgage loans from failed institutions. I was a team member that conducted site visits of their offices in Florida and California. Very little got by us...during our last year, they and another company voluntarily withdrew from their contracts. Were we too tough on them? Hardly, we just held them to the provisions of the contract.
