As readers may know, the banking industry is trying to prevent the FDIC from moving forward with its proposed reforms on securitizations and is also attacking related SEC reforms, namely amendments to Rule A/B.
To further the effort to curb servicer abuses, please visit the website, StopServicerScams, and sign the petition. As we have written, and as experts and foreclosure defense lawyers have reported in Congressional testimony, and as pending lawsuits by attorneys general in Arizona and Nevada allege, servicer abuses are a significant cause of foreclosures. These include including delaying and misapplying payments, using false hopes of pending mods to extract more payments from consumers, and applying compounding junk fees.
We will submit the signed petition in early January. Thanks for your support in this important effort.
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Thank you for your efforts. Enjoying very much.
Fred
I signed the petition but would have appreciated an opportunity to add additional comments. I didn’t think the petition statement was nearly strong enough.
I am sure that numbers speak much more effectively than flames.
I disagree. If you can find the words that help change someone’s mind, that’s worth a thousand signatures.
Done. Thanks, Yves
Done and Thanks for all your efforts!
against that sinking confidence of no way out for those of us who work for our living, i signed. hope it helps. thanks for all that you do.
Yves,
Done and thanks for your efforts. It beats beating my head against a wall.
Done, and I’m encouraging others to sign as well. Thank you.
I believe I signed it too, yet when I clicked the “sign petition” it directed me to your home page and didn’t spit out any kind of confirmation that I had signed/thank you, etc. I did let them have it though – with both barrels.
I did not sign this; it strikes me as a bad idea to encourage the Obama government to shoulder the states aside.
I don’t trust the Obama team. They seem to be all about fake window-dressing reform.
Maybe not all, but at least some, state governments/AGs seem to support the rule of law and the consumer.
What does signing the petition have to do with the Obama administration? You need to turn off Fox Noise and stop listening to Glenn Beck and Rush Limbaugh. They only get you to act against your own interest!
In order to effectively protect the mortgage loan consumer, you and they must first know the Trust where their loan is located. From there you can access the Pooling and Service Agreement (PSA) which will identify the Servicer’s ability to modify loans. An example of an IndyMac INDX Mortgage Loan Trust 2007-AR5 PSA reads, in part:
“Section 3.12. Realization Upon Defaulted Mortgage Loans. The Servicer may agree to a modification of any Mortgage Loan at the request of the related Mortgagor if (i) the modification is in lieu of a refinancing and (ii) the Servicer purchases that Mortgage Loan from the Trust Fund as described below…”
We know in most cases that the Servicer is NOT going to purchase the loan from the Trust at face value in order to modify the loan – most of these loans are inflated and buying them at face value would be ridiculous. So, let’s get very real here. In each and every case, the certificateholders (investors) need to be involved and determine how much modification they can accept. Mathematically, it would be better for the investors to take over the loans and deal directly with the consumer cutting out the Servicers and banks altogether. The investors received very little return to begin with – but if they even have a chance at recovering any of their investment before these banks deplete all the assets of the trusts in foreclosure and file for bankruptcy protection – it is dealing direct with homeowners. RECONSTRUCT the loans: strip the loans to current market value (MLS information), 30-40 years at 0-2% interest based on how egregious the fraud committed by the bank is determined – and most folks could keep their home and the investors’ pensions may be saved.