tgage market Matias Kranevitter Jersey

Posted by xin xiu24 on 7. Jul 2016

ers are middlemen who process the mortgage payments from homeowners and


direct the money to the banks or investors who hold the loans. With the current


problems in the mortgage market Matias


Kranevitter Jersey
, banks and the federal governments have reached


consensus to help homeowners, but often the mortgage servicers, having the


ultimate power to modify a mortgage, refuse to ?play ball?. Further, they are


increasingly turning to consumer abuses to collect mortgage payments, at a time


when working with and helping out distressed consumers would obviously be in


everyone?s best interests. Mortgage servicers are sometimes stand alone


companies, but sometimes are the branches of major banks and lenders. Brennan,


Wiener & Assoc. handled a case recently against Wells Fargo Home Mortgage,


in its capacity as a mortgage servicer servicing a mortgage first belonging to


GE Capital, and then later to Freddie Mac. A San Bernardino, California jury


returned a verdict to the plaintiffs for over $800,000.00 for a two year pattern


of false credit reporting. Fisher v. Wells Fargo, San Bernardino Superior Court


Case No. RCV 074 822, currently on appeal at the California Fourth District


Court of Appeal. What the Fisher case teaches is that major banks like to


collect the fees from mortgage servicing but do not want to put any actual money


into customer service or straightening out problems. Mortgage servicing is all


automated, and if you really want to wait on hold sometime, try calling your


mortgage servicer to straighten out a problem. Other lawsuits and attorneys


general have become aware of this growing problem. Recently, lawsuits alleging


loan modification delays and illegal collection practices have been brought on


behalf of consumers by both private attorneys and by attorneys general. Recent


studies reported that at least 38 mortgage servicers had been sued for charging


illegal fees, forcing homeowners to buy needless insurance, illegal collection


practices, confusing customers about the federal loan modification program, and


foreclosing on homeowners with pending loan modification applications.


Additionally these mortgage servicers also have been criticized for not helping


homeowners promptly, causing homeowners to pay more late fees which work out


beneficially for the companies. President Barack Obama announced the Home


Affordable Modification Program, in March 2009, to help an estimated 4 million


homeowners avoid foreclosure. Under this program, mortgage servicers will earn


fees to help homeowners facing foreclosure reduce their monthly mortgage


payments. The mortgage servicers are the only link between borrowers and banks


or investors and therefore they are in the best position to modify the loans


under this new program. The objective is to adjust mortgages so homeowners


payments remain affordable. But, in a proverbial sea of exploding adjustable


rate mortgages that homeowners cannot afford, only about 200,000 mortgage loan


modifications are under way. The mortgage servicers don?t have enough financial


incentives to modify the mortgages as they only earn on average of ? to ?


percent of the value of the loans they service. Added to this is their natural


incentive to keep costs down by understaffing their loan modification divisions


and their customer service divisions. The larger the mortgage payment, the more


the mortgage servicers earn Martin


Demichelis Jersey
, and they earn less if the loan is modified,


which frequently involves lowering the interest rate or taking other steps to


reduce monthly mortgage payments. An analysis by the Associated Press shows that


of the 38 servicers that are being paid by the government as part of the federal


loan modification program, 30 are facing lawsuits for charging illegally high


fees, prematurely foreclosing on homes and engaging in illegal collection


practices. These are violations of laws protecting homeowners in foreclosure and


laws that prevent credit reporting and debt collection abuses. Fourteen of these


companies have suits against them for misleading homeowners about their


eligibility for the loan modification program and how much the




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