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.
According to the latest report from the Special Inspector General for the Troubled Asset Relief Program (or the much-cooler SIGTARP), the nation’s mortgage servicers have received more than $800 million in incentives for making modifications on mortgages that have ultimately resulted in the homeowner redefaulting on the loan. [More]