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View Full Version : Federal mortgage servicer reviews target 4.5 million foreclosures



red states rule
10-24-2011, 02:38 AM
I can see a great deal of OT heading my way in the next several months. I was told I volunteered to assist in gathering all the documents needed for anyone who requested this one time review

The compnay I work for has about 900,000 loans that qualify under this program

I doubt if will silence the folks that blame the banks and not the borrower for not being able to make the house payments but we do want to make sure all the rules were followed on the foreclosure




The reviews federal regulators required of the 14 largest mortgage servicers to determine how many borrowers were harmed by faulty procedures will span nearly 4.5 million loan files, according to Acting Comptroller of the Currency John Walsh.

In the coming weeks, homeowners who faced a foreclosure will be able to request a review of their case if they believed they suffered financially as a result of a servicer's error. Direct mailings and an advertising campaign will target borrowers who received a foreclosure between Jan. 1, 2009, and Dec. 31, 2010.

In April, the 14 servicers, which include Bank of America (BAC (http://finance.yahoo.com/q?s=BAC): 6.46 0.00%), JPMorgan Chase (JPM (http://finance.yahoo.com/q?s=JPM): 33.42 0.00%), Wells Fargo (WFC (http://finance.yahoo.com/q?s=WFC): 26.31 0.00%) and others, signed consent orders (http://www.housingwire.com/2011/04/13/fed-sanctions-mortgage-servicers-for-foreclosure-debacle) with the Office of the Comptroller of the Currency, its now absorbed Office of Thrift Supervision, and the Federal Reserve.

The orders settled an investigation into faulty servicing practices including robo-signing, dual-track foreclosures and a shortage of qualified staff to work with delinquent borrowers.

As part of their investigation, the regulators along with the Federal Deposit Insurance Corp. spent three months studying (http://www.housingwire.com/2011/05/04/fdic-study-blames-mortgage-servicing-mess-on-big-banks)2,800 loan files, roughly 200 per servicer, but required third parties to handle the look-back reviews of any pending or completed foreclosure in the allotted time.

Walsh, during an American Banker symposium Monday, said the initial review was "not nearly enough to answer all questions."

The consent order, signed by each member of the board of directors at the banks, required new oversight, a single point of contact for the borrowers, and the end of proceeding with a foreclosure while a modification is being considered.

http://www.housingwire.com/2011/09/19/federal-mortgage-servicer-reviews-target-4-5-million-foreclosures

PostmodernProphet
10-24-2011, 07:10 AM
I can say for certainty that these large loan services don't have a clue what is going on with respect to their mortgages........I contacted Wells Fargo regarding a client in default and requested specific information from them.......I receive a letter from Wells Fargo every three months asking if I still represent the clients.....I respond that I do and that I am still waiting for the requested information.....my clients have made no payments since December of 2009.....so far I have not received the requested information and the foreclosure sale has not yet occurred......

red states rule
10-25-2011, 03:39 AM
I can say for certainty that these large loan services don't have a clue what is going on with respect to their mortgages........I contacted Wells Fargo regarding a client in default and requested specific information from them.......I receive a letter from Wells Fargo every three months asking if I still represent the clients.....I respond that I do and that I am still waiting for the requested information.....my clients have made no payments since December of 2009.....so far I have not received the requested information and the foreclosure sale has not yet occurred......

I have no doubt there were/are mistakes made PMP -that is the goal of this program to find them and to correct them

I can speak on what I have seen, and seldom is the error made by the bank

I have seen borrower's ignore repated calls and letters asking them if they ned help. I have seen people file repeated Chapter 7 and 13 only to buy time before the foreclosure takes place

In fact I have received notice of filing the day of the sale only to find out the sale took place before the filing thus making the bankrupty filing irrelevant

I have seen loans go back into default after the rate was reduced to 2%

The most repeated action is the borrower fails to submit needed documents for the review process, and only after the f/s sale takes place (usually the day after the sale) we receive the needed docs and a demand to rescind the f/c sale

Also the investor (Fannie, Freddie, ect) must approve any changes made to the loan or approve the terms of the short sale

Another point some people do not understand is asking for help, or going into loss mitiagtion does not stop the normal collection process or the f/c process. Again, the investor must agree to any f/c sale postponment

Bottom line is, many of these people are in homes they cannot afford. No matter what is done to modify the loan, they simply do not earn enough money to keep them