New federal loan-servicing rules proposed
The Consumer Financial Protection Bureau says its proposals would eliminate the surprises and runarounds that borrowers experience today.
The federal Consumer Financial Protection Bureau has proposed new rules for mortgage servicers that it says will eliminate surprises and runarounds. Yes, we've heard this before. No, it hasn't happened yet.
The foreclosure crisis revealed numerous problems with how the companies that collect homeowners' mortgage payments do business. Consumers have complained of problems ranging from lost paperwork to unresponsiveness to outright fraud, including a process known as "robo-signing."
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"The inadequate performance of many mortgage servicers has helped widen the misery for many Americans," Richard Cordray, director of the consumer agency, said in announcing the proposed rules. "Right now, consumers often struggle to get critical information about their mortgage loans. Many have a hard time correcting errors. They often do not know about options to avoid foreclosure. And when they are trying to keep their homes and find options that make sense, they often get little help from their servicers. … Right now, people have too little protection under federal law if their mortgage servicer surprises them with costly fees or gives them the runaround."
Consumers get no choice in which company services their mortgage. That decision is made by the lender. If you get bad service, you can't switch.
The bureau is seeking public comment through Oct. 9 on the proposed rules, which it first announced in April. Final rules will go into effect early next year.
Among the proposed new rules:
- Mortgage statements would have to clearly state the amount due and how past payments have been applied.
- Borrowers would have to be notified starting six months in advance when interest rates were scheduled to change.
- Servicers could not impose "forced-place" insurance without first giving borrowers two notices estimating the cost.
- Payments would have to be credited the day they are received.
- Servicers would have to review alternatives to foreclosure with delinquent borrowers.
Will these new rules really improve the process? Ben Hallman at The Huffington Pot is skeptical. He writes:
But there is reason to question whether servicers would follow the new rules, and whether regulators would enforce them. The mortgage industry has made promises before -- in deals reached with the Office of the Comptroller of the Currency and other federal agencies last year and as a condition of the $25 billion settlement with 49 states and the federal government six months ago.
The first set of new servicing standards were mostly ignored by the industry, housing advocates said. Early returns on compliance with the attorneys general settlement are not encouraging, they added.
I he been fighting Wells Fargo for 5 years, when I became disabled, I saw a credit counseling and they informed me to go BANKRUPT, in the mean time I sent the so called HARP paper work 4 times.
The last time they informed me that I was able to get the help I needed !!
1 - On 11/7/2009 I was informed do not make any more payments, they would be picked up at the end.
2 - 5/2010 I received a certified letter telling me I was 7 months behind and had 30 days to come up with 8,000.00 Dollars or I would be forclosed on and my stuff would be removed for me.
I was lucky if, you can call it that. I made the payments to the savings so I had the money, I paid in full and still inquired if there was anything the coul do to help. THE ANSWER WAS NO if I can't afford it sell it !!
It has been 3 years and kept my payments up and the still say the can't help,I have tried other companys and the say the can't help because it is a moblie home.
When I puchased this place they showed floor plans and it was labeled as a modular home, it is on a foundation, I grew up in a mobile home, and I would not call this a mobile home.
It was assembeled in a huge wharhouse, I went to see the construction I omitted and moved walls, I no of NO
mobile home that you can change plans,
If anyone knows of a company that wouuld refi. please let me know.
SHOULD LENDERS HAVE TO HAVE GIANT SIGNS THROUGHOUT THEIR OFFICES THAT SAY?
WE ARE NOT WORKING TO MAKE FRIENDS WITH YOU
THE ABILITY TO REPOSSESS IS A PENALTY WRITTEN INTO YOUR CONTRACTS BECAUSE IT ALSO HELPS US MAKE MONEY NOT BECAUSE WE HATE YOU
PLEASE DIRECT YOUR ATTENTION TO THE FACT THAT YOUR SIGNATURE MAKES YOU LIABLE TO LOSE WHAT YOU ARE ATTEMPTING TO GAIN ............... SO STOP DAYDREAMING AND THINKING ABOUT THE FUN THINGS THAT YOU WILL BUY AND PAY ATTENTION TO WHAT YOU WILL OWE AND THE FACT THAT WE WILL DO EVERYTHING NECESSARY TO GET OUR MONEY AND THE PROFIT BACK .............. AT YOUR EXPENSE
WE ARE NOT HERE TO PAY BACK SOME IMAGINED DEBT TO SOCIETY, WE ARE HERE TO MAKE MONEY, THIS IS NOT SOME SOCIAL REPARATIONS OFFICE
Hey Rev AL ,
you and jesse jackson have stolen from companies to pay you off and not file false racial charges against them. Do the two of you pay taxes on what you steal.
This story is BS, if anyone followed the TARP funds, they would find out that Obama said NOT TO STOP THE LARGE BONUSES TO BE PAID OUT TO THE CEO's.
Ask G. Soros how much money he has donated to Obama for campaigns, houses for V. Plume & Obama to be neighbors. The 8 to 12 billion dollars Obama gave to Brazil to explore for oil to be sold to China . By the way, Soros is a very heavy investor in Brazilian oil companies........
I am really sick and tired of you out there who think that you are entitled to a free ride. Do you really think that the Government is just some big pile of money out there that you can just ask for. If you want something in your life why don't you get off you butt and go work for it. Live within your means as the government should do and the Republicans will see to it. The Democrats are just pandering for votes. They care only about getting reelected with no concern about the huge debt they are creating. Do the math. We have 330 million people and 16 trillion in debt. thats about 50 thousand dollars for every person in this country. A baby born today already owes 50 thousand dollars. Where's the fairness in that. If you took every dime from every millionair you would run the country for 8 days. What will you do then? Stop the mass spending and get people to work for their living, not a free ride form the rest of us.
Romney/Ryan will jump start this country by cutting off social security and welfare to ALL of the deadbeat Americans that have been too lazy to work (like my 89 year old grandma).
Like romney, I have ben telling her years to get her lazy **** and get a job so the rich people can buy another yacht (and pay no tax on it). She uses the excuse she has bad knees, B.S. She could at least get a sit down job answering phones or something, but she won't even look for work because her social security check is bigger than ANY paycheck she would get. She is ONLY 89 and there are a few more years that she could be paying taxes on WAGES instead of just sitting around sucking up that social security free money! My grandma just doesn't understand how those wealthy Americans are hurting having only 1 mansion to live in and scraping by with only 1 yacht and a few million in offshore accounts. I tried to explain to her that it isn't the wealthy American's faults, they have so much money that they have to get other people to watch over it and make their investments for them. She just doesn't get it!
Then Romney/Ryan fire up that war machine and hike the military budget to $260BILLION to keep the corporations happy. Everyone will have a job building weapons! America will working again and the world will fear our military might!
Romney and Ryan will yank the social safety nets right out from under grandma and then she'll see who is the boss! How dare these old people sucking up social security after building the greatest nation in the world, just sit there and refuse to work any more. When romney/ryan yank the safety nets grandma will soon be gone and the wealthy Americans can have money given to them in the form of tax incentives!
The rich will get richer and the poor, well they will be dead so don't worry about them. It's all about the money!
4 MORE FOR 44
OBAMA / BIDEN 2012!
About Teresa Mears
Teresa Mears is a veteran journalist who has been interested in houses since her father took her to tax auctions to carry the cash at age 10. A former editor of The Miami Herald's Home & Design section, she lives in South Florida where, in addition to writing about real estate, she publishes Miami on the Cheap to help her neighbors adjust to the loss of 60% of their property value.