Complaints Surging, Modifications Decreasing As Loan Servicers Snap Up Mortgages From Banks

Complaints Surging, Modifications Decreasing As Loan Servicers Snap Up Mortgages From Banks

It’s been a rough few years for homeowners. Since the collapse of a housing bubble in 2008, mortgage-holders have been yanked around every which way by the banks that own their loans. Mega-banks like Wells Fargo and Bank of America have earned their reputations for being impenetrable, hostile bureaucracies to their customers. The industry has done everything from issuing loans that borrowers had no chance of repaying, to “losing” paperwork that distressed borrowers endlessly resend, to foreclosing on borrowers who have actually paid, and even discriminating based on race and gender. [More]

Regulators Hatch Plan To Pay Back Victims Of Bad And Illegal Foreclosures

Regulators Hatch Plan To Pay Back Victims Of Bad And Illegal Foreclosures

It’s no secret that foreclosures in America have been a royal mess. Missing paperwork, faked documents, turbo-charged courts that just rubberstamp foreclosure orders, robosigners, the list goes on. Along the way, a number of homeowners have gotten foreclosed on improperly and, in some cases, even illegally. So regulators are putting together a plan for grand-scale recompense. They’ve laid down decrees that servicers have to start following the law, for really reals this time, banks need to hire outside firms to review their foreclosure actions between 2009 and 2010, and then pay back their victims. [More]