Will Foreclosure Abuses Ever End?

Will Foreclosure Abuses Ever End?

The creation of the Consumer Financial Protection Bureau is arguably the best reform to emerge from the Dodd-Frank law. An effective bureau will rectify and prevent lending abuses and ensure that consumer protection is a central priority in a sound banking system.

Yet, for all that promise, the bureau’s recent proposal to regulate the foreclosure process is a disappointment. At issue is mortgage servicing, an industry that is dominated by big banks and involves processing mortgage payments for investors who actually own the loans. When homeowners do not pay on time, it is up to servicers to manage defaults, loan modifications and foreclosures.

The problem is that as delinquencies surged in the housing bust, mortgage servicers proved themselves incompetent — or worse, deceptive and abusive — in doing the job. The result has been potentially millions of wrongful foreclosures, in which troubled borrowers have not been given a fair shot at modifying their loans and keeping their homes.

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2 Responses to “Will Foreclosure Abuses Ever End?”
  1. Ken Hansen says:

    Is the CFPB designed to fail? Cordray sounds more like someone watching out for Banking interests, since, let’s be honest, they might be the only consumers that really matter. His latest public hot air was about making sure “credit ain’t made too tight by them rules n’ such, so let’s protect them Banksters who make high quality loans”. This sounds like a press release from a nearby lobbyist. He’s going out of his way to offer special protections to Banks. What do banks need that for!? Ironically, Kirkland & Ellis (Richard’s old gig) is one of Romney’s biggest contributors.

  2. So many families put so much into their homes /those having upgraded to new neighborhood. Seniors investing for retirement planning! Very few winners. Most that created this mess just walked away moved down the street and repurchased once again! Billions given to whistle blowers over inflated appraisals? Robo signing? Lenders thst tried too come foreward lost their jobs! Seniors fixed income dissbility payments a chosen few got to win a lawsuit over something that was rapant with all banks! State government critisized over using funds meant for homeowne rs?? Does anyone think the monies would really be fairly distributef? That it would save someones home??.state government already know it wont be given to deserving citizens might as well spend it where needed!

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