Nearly a decade after the housing bubble burst and the government created programs to provide relief for homeowners facing foreclosure, the Consumer Financial Protection Bureau is working to ensure that consumers continue to receive needed assistance tailored to changing home retention needs. Today, the Bureau has released new a new outline to guide the creation of new solutions for foreclosure relief. [More]
Many banks offer benefits to account-holders who also have their home loan serviced by the institution. Bank of America has been doing that for years, cutting fees for people with both checking accounts and mortgages. But now BofA has gone and sold off millions of these mortgages to another servicer, starting a countdown clock for account-holders to go elsewhere or likely face new fees. [More]
In 2009, tens of thousands of homeowners with mortgages serviced by Goldman Sachs subsidiary Litton Loan Servicing entered into trial loan modifications. But fewer than 12% of those same people ever received permanent adjustments to their mortgages, not because they didn’t qualify, but because Litton’s system for handling paperwork was a horrendous mess.
The Consumer Financial Protection Bureau is sinking its teeth into its new watchdog role, as today they’re expected to announce a few rules they’re working on to try and clean up the mortgage-servicing industry. Here’s where we imagine banks quaking in their big ol’ boots.