Mortgage Modification Overhaul Sought by States

[ProSense]

Mortgage Modification Overhaul Sought by States

By NELSON D. SCHWARTZ and DAVID STREITFELD

State attorneys general have presented the nation’s 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.

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The latest proposal, delivered to the banks late Thursday, represents an expansion of powers for the newly created Consumer Financial Protection Bureau, which government officials say has taken a more aggressive stance in the talks than some other banking regulators.

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[lunatica]

1. I'm in a trial modification payment plan now

I pay a lowered mortgage for three months to see if I can. They've told me that if I miss a payment or am late that the foreclosure will resume where it stopped.

It's tough but I'm determined to give it my best shot. Even if it means eating beans and pasta only.

[ProSense]

3. Some banks

seem to be intentionally slowing the process. The application aproval time frame is ridiculous. That's the first thing that should be addressed.

If the modifications had been expedited and the goal of more than 3 million reached, the housing landscape would be a lot different.

As it stands, all the banks are doing is dragging their feet and complaining every step of the way.

From the OP article:

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Indeed, the big banks are already arguing that the recommendations, especially the consumer bureau’s new powers, will slow the foreclosure process and inhibit lending in the future. Banks would have to provide the agency with their formulas for determining if and when modifications would proceed, as well as quarterly reports on their internal procedures.

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Also, the last paragraph says it all.

[sueh]

2. My husband and I are trying to get a mortgage modification...

kudos to Elizabeth Warren for trying to help people stay in their homes. It's a damn shame we have to "hope" the banksters will co-operate.

[ClarkUSA]

4. Kudos also to President Obama for making it possible for Elizabeth Warren to do so.

After all, this has always been one of his goals but he decided to create the news bureau because he felt Elizabeth Warren was exactly the right person for the task. They have been good friends since their Harvard days together, BTW.

I wish you and your husband the best of luck on your mortgage modification.

[sueh]

5. Thanks, ClarkUSA...

I agree with you there about President Obama.
:hi: