05 Apr Demand Meaningful Modification of Your Mortgage Loan
A study by the federal Office of the Comptroller of the Currency and the Office of Thrift Supervision found industry attempts at loan modification are inadequate. The government agency looked at 35 million loans worth over $6 trillion. Almost 1 in 4 loans resulted in increased monthly payments as a result of fees and interest added to the loan by the mortgage lender.
Half of those loan modifications in which the payment increased or was unchanged went back into default within 9 months after modification. Whereas 3 out of 4 loans in which the payment decreased by 10 percent or more did not default during that period. Statistics show that meaningful modification works but is not happening in sufficient number.
The mortgage industry should be ashamed of claiming a loan was modified if the monthly payment did not substantially decrease. That sounds just as bad as writing a no document or liar loan in the first place.
The mortgage loan and foreclosure crisis persists years after Washington DC politicians acknowledged the problem. Voluntary industry solutions are a failure. Consumers should demand meaningful mortgage loan modification from Congress now.
Andy Miofsky, Esq.
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