Relevant:
- Investors Hit BofA Loan Modifications
- Lawsuit Would Force Countrywide/BofA To Purchase $80 Billion In Modified Loans
- FHA Claims Against Bank of America / Countrywide Settled
- Mortgage Bond Investors’ Suit Against Countrywide Goes to State Court
- Countrywide loan credit improving without significant modifications
2009-01-15 — msn.com
In marketing, advertising and testimony before Congress, Countrywide Home Loans has said repeatedly that it is working hard to modify the mortgages of financially strapped borrowers caught up in the subprime meltdown. But in a New Hampshire court, attorneys for the lending giant are singing a different tune, describing such assurances as “mere commercial puffery.â€
Simply breathtaking. You would think Countrywide would make amends on the one loan this lawsuit centered around, if only to avoid the horrible PR exposure. But apparently no -- the Countrywide/Bank of America machine is just too mortified of giving any ground on loan modifications. Even to increase staff sufficent to demand would be armageddon for them, as they cannot afford to increase their fixed costs right now. It is already death by 1000 cuts for them, as we predicted when the merger was first announced.
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Comments:
Deed In Lieu at 09:13 2009-01-16 said:
Loan modifications are hard to obtain and for the individual homeowner who is trying to deal with the lenders "servicing company" it's a long frustrating process that ends up in failure at least 50% of the time. This battle is going to be fought in the courts by attorneys who know how to slice through the layers of obsticles beginning with some guy, with the nickname of "Willie" in India who doesn't speak english. So far all the talk about loan modification has been "lip service" as the lenders buy time and beg for a bailout. It's time to force the lenders to share some of the lose and bankruptcy reform might be the answer. Permalinkfollowingthemarket at 10:41 2009-01-16 said:
Scary thing is, their strategy is to sit back and do nothing while Congress gives them billions of taxpayer dollars to cover over their mistake. PermalinkSteveP at 13:13 2009-01-16 said:
Countrywide and most other major servicers have been way too generous and way too loose in granting so many modifications. Here on this very board it has been reported that the majority of modified loans re-default. This is clear indisputable proof that loan modifications have been approved that should not have been approved. Until the re-default rate on loan modifications fall to 20% or less, you can only conclude that modification standards are way too loose or the documentation being submitted is fraudulent (most likely courtesy of one of those slimy loan modification outfits). The sooner these defaulted home owners are booted out of the homes that they never could afford in the first place, the sooner these homes will flood the market and drive home prices back to affordable levels. When home prices fall to affordable levels, home buyers will be able to afford the payments and these excessively high default rates will disappear. Permalinkadd a comment | go to forum thread
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