May 19, 2013 | Updated 7:00am

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Wednesday, January 9, 2013, 11:26am

Feds Replace Flawed Foreclosure Review With Vague $8.5 Billion Settlement

ProPublica

The Independent Foreclosure Review was supposed to be a full and fair investigation of the big banks' foreclosure abuses, and it was trumpeted as the government's largest effort to compensate victimized homeowners. Federal regulators, who designed the review, forced banks to spend billions to carry it out. Millions of homeowners were eligible and hundreds of thousands submitted claims. But Monday morning, the very regulators who launched the program 18 months ago announced that it had all been a massive mistake and shut it down.

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