report: loan servicer safe harbor will foster shoddy loan mods

kindandgentlejd at 11:22 2009-04-30 said:

Personally, I am saddened by the whole direction all of this is going for the taxpayers and consumers. The consumers are the ones losing in this mortgage crisis and I believe that much more is at stake than their homes. Congress is putting up taxpayers money to help the very people who are not letting Congress assist consumers. Congress is presently owned and controlled by the banking and wall street system and the poor consumer is getting dumped in the process. All present reforms to assist consumers as follows are failing (the reports):

RESPA Reforms – Announcement today by Mortgage Bankers Association: MBA, Trade Groups Win Amendment Vote on RESPA Rule Withdrawal The House Financial Services Committee yesterday approved an amendment yesterday that would call on HUD to withdraw its controversial Real Estate Settlement Procedures Act final rule and compel it to work with the Federal Reserve to issue a new joint rule.

Mortgage Modification – Bankruptcy Cramdowns: Mortgage Modification Bill Faces Trouble in Senate Washington Post (04/28/09) P. A18; Merle, Renae Financial services industry officials say it is becoming increasingly unlikely that Senate leaders will win the support of Bank of America, JPMorgan Chase and Wells Fargo on a mortgage modification bill expected to come up for a vote on April 30. The section allowing bankruptcy judges to modify home loans is said to be nearly complete, but talks have been shifting to limiting the scope of other provisions of the bill. The House version passed in March, but strong opposition to the bankruptcy language could force lawmakers to strip the provision from a housing bill and introduce it as an amendment.

Mortgage Mods – Lenders are collecting more data on consumers for prosecution, not assistance: Mortgage Fraud Bill Wins Senate's OK Atlanta Journal-Constitution (04/29/09) With roughly 5,000 suspected cases of mortgage fraud entering the pipeline each month, U.S. senators on April 28 sanctioned the hiring of hundreds of additional FBI agents and prosecutors to investigate the crimes. Advocates said revenue from fines and penalties--the result of more aggressive enforcement on the government side--would offset the cost of the Senate bill, estimated at more than $265 million annually over the next two years.

The big losers are consumers while the lenders are getting all of the assistance. It is shameful. Now evidenced by this article, it all comes down to making money, not helping a consumer... using tax payer money and Congress and they are trying to figure out a way to extract even more from consumers. Permalink