The mainstream media continues to catch up on the crisis, reported months ago by the Congressional Oversight Panel, that only a tiny percentage of distressed homeowners are receiving assistance. The Treasury Department announced that it would be sending in SWAT teams to monitor the larger mortgage companies’ compliance with the modification program.
Mortgage Servicer Abuses
The mainstreem media is acknowledging what consumer attorneys have known for months–that mortgage modification is only happening in a tiny percentage of applications. Mortgage servicers are blaming the homeowners for failing to turn in paperwork; homeowners report multiple mailings of paperwork only to be told they are denied due to errors or incompleteness.
Funny how legal issues seem to pop up in clusters on my desk: three different clients sent me their annual escrow analysis howling. Each of them was looking at an increase in their monthly payment of over $1000. Each of my clients is currently in a bankruptcy proceeding, so we’re lucky in a way. We [...]
The bankruptcy of Taylor Bean & Whitaker Mortgage Corp., resulted in the transfer of mortgage servicing on its entire loan portfolio according to information from Bankrate.com. All of the FHA, VA and Rural Housing Services loans that were current as of August were transferred to Bank of America. Delinquent loans were transferred to either Saxon [...]
A federal judge refused to let a lawsuit against Countrywide Financial Corporation be transferred to federal court today. Two investors in mortgage-backed securities sued Countrywide over plans to make up to $8.4 billion in loan modifications as part of a settlement with 15 state attorneys general. They argued most of the loans at issue aren’t [...]
On May 4, 2009, the South Carolina Supreme Court took the unusual step of issuing a temporary restraining order to stop foreclosure sales on mortgages owned by Fannie Mae or Freddie Mac, or that are otherwise eligible for modification under the Home Affordable Modification Program [HAMP]. Blogger Russ Demott points out the importance of the [...]
