Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
3Activity
0 of .
Results for:
No results containing your search query
P. 1
BERNANKE TAKES OFF BLINDERS & FINALLY SPEAKS UP ABOUT THE FORECLOSURE FIASCO

BERNANKE TAKES OFF BLINDERS & FINALLY SPEAKS UP ABOUT THE FORECLOSURE FIASCO

Ratings: (0)|Views: 21 |Likes:
Published by 83jjmack

More info:

Published by: 83jjmack on Nov 01, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/02/2010

pdf

text

original

 
Reprints
Thiscopy isfor your personal, noncommercial use only. You can order presentation-ready copiesfordistribution to your colleagues, clientsor customershereor use the "Reprints" tool that appearsnext to anyarticle. Visitwww.nytreprints.comfor samplesand additional information.Order a reprint of thisarticle now. October 31, 2010
More on the Mortgage Mess
BenBernanke, chairmanof the FederalReserve, said recently that federalregulators are“looking intensively” at banks’ foreclosure practices. Aninvestigation is long overdue, though itshouldn’t take a lot of digging.Consumer advocates, the press, investors and homeowners have already compiled a compellinglist of transgressions: conflicts of interest that have banks pushing foreclosures, without a good-faith effort tomodify troubled loans. Dubious fees that inflate mortgage balances. The hundredsof thousands of flawed foreclosure affidavits that violated homeowners’ legalprotections. Themisplaced documents. And it goes on.For years these problems have beenthe focus oresearch reports,Congressionaltestimony and court cases. Regulators, however, looked the other way, which is how we got intothe mortgagemess. What makes the latest scandals sooutrageous is that evenafter the financialmeltdown andtaxpayer bailout— and allthose vows about accountability — the regulators are stillbehind thecurve. The fundamentalproblem is that the banks’ drive toprofit from the foreclosure processis alltoooften at odds with the interests of mortgage investors, homeowners and the economy’shealth.That is a big reasonthat the Obama administration’s antiforeclosure effort, with its voluntary participationby banks, has fallen soshort.Here is the background. The big banks — Bank of America, JPMorgan Chase, Citibank, WellsFargoservice most of the nation’s home mortgages for investors whoown the loans. They arepaid a fee by the investors and alsomake money from fees ondelinquent loans.Servicers are obligated tomanage the loans inthe best interest of the investors. That meansmodifying a troubled loan, if reduced payments would bring inmore money over time than aforeclosure. Or foreclosing if a borrower cannot make the payments on a modified loan.If only it worked that way inpractice.
11/1/2010 More on the Mortgage Mess - NYTimes.nytimes.com/2010/11/01//01mon1.ht1/2

Activity (3)

You've already reviewed this. Edit your review.
1 hundred reads
David Welch added this note
I help my brother twice a week in his mortgage modification business. Sad to say business is booming. The banks generally don't seem to have a clue, or perhaps they do and are deliberately profiting from others misfortune as this article suggests.
83jjmack liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->