Skip to comments.Mortgage Modification Overhaul Sought by States(slowing down foreclosure indefinitely?)
Posted on 03/06/2011 6:09:54 AM PST by TigerLikesRooster
Mortgage Modification Overhaul Sought by States
MORTGAGES, FANNIE MAE, FREDDIE MAC, 30-YEAR LOAN, INTEREST RATES, HOUSING, REAL ESTATE, CONSUMERS
The New York Times | 05 Mar 2011 | 12:20 PM ET
State attorneys general have presented the nations five biggest banks with a list of demands that could drastically alter the foreclosure process and give the government sweeping authority over how mortgage servicers deal with millions of Americans in danger of losing their homes.
Under the blueprint, banks would be prohibited from starting foreclosure proceedings while a borrower was actively trying to lower the interest rate or ease other terms of the home loan, a process known as a mortgage modification.
Any borrower who successfully made three payments in a trial modification would be given a permanent modification. When a modification was denied, it would be automatically reviewed by an ombudsman or independent review panel.
The proposed changes, which will be discussed by the attorneys general when they meet in Washington early next week, would compel the banks to treat each borrower in default individually.
(Excerpt) Read more at cnbc.com ...
Yeah, that will work.
Until new buyers try to get a mortgage.
Yeah; just another way to zombify the economy - same way the Japanese did it to themselves by propping up businesses that should have been closed.
My gut feeling is that the socialist would be looking to stack the review panels with liberals. Next thing that would happen is the panel would look at what political party your associated with, if your a smart conservative Republican you will lose your house, if your a dumb liberal Democrat you will get to keep your house, and in fact they will probably give you housing stamps to help you pay the mortgage, all at the expense of those evil country club oil barren Republicans.
This provision is intersting to me because under the current federal program, I know 2 people that got into serious trouble. They made the loan modification payments, but were, in the end rejected from the program and had to come up with a large sum of $$$ to make the loan current (which of course they didn't have...or else they wouldn't have been seeking the loan modification in the first place.)
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Creature for Jekyl Island ping.
Not that I am happy with bankers right now, but putting political appointees in charge of banking decisions in what got us in this mess in the first place.
This will cause all sorts of unforeseen complications. Not a good idea.
“Yeah; just another way to zombify the economy - same way the Japanese did it to themselves by propping up businesses that should have been closed.”
We probably could have bought all mortgages by now, and watched the economy skyrocket because of all the extra money in people’s pockets. Instead, the trillions went where? I don’t know. Does anyone?
BS, five states, does not make the states and you bet everyone of them is a democrat. This crap will not pass constitutional law, so little Bamma is trying a state end run. Still will not get by the equal treatment clause, if your bank modifies one loan sue them for the same treatment.
I think the total number of outstanding derivatives was over, sit down now and take a deep breath, 650 trillion.
Where is the stipulation that the bank must first show conclusively that they own the loan and deserve a place at the negotiating table?