Lenders Doing Little to Help Homeowners
It comes as no surprise that lenders which preyed upon borrowers during the recent housing boom have strongly resisted all efforts at mandating homeowner assistance. Obviously the lenders would rather get out of debt.
The AP is writing:
But as defaults and foreclosures snowball, the mortgage industry is under increasing pressure to do even more to help financially strapped borrowers hang on to their homes.
“People are talking about it, saying it might be necessary, but there’s not a lot of it going on,” said Guy Cecala, publisher of Inside Mortgage Finance, an independent trade publication.
The Mortgage Bankers Association is currently surveying its members to determine how many mortgages have been modified in recent months.
Moody’s Investors Service recently surveyed 16 mortgage servicers that accounted for 80 percent of the market for subprime loans made to borrowers with shaky credit histories.
It found that most of those companies had modified only about 1 percent of loans with interest rates that reset in the first half of this year.
It seems like a silly conflict of interest to force a lender to assist a homeowner in reducing mortgage debt. The government is rarely logical when considering such however. Just look at who runs the Federal Reserve.
Comments
Leave a Reply
You must be logged in to post a comment.