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uscitizen
08-05-2009, 06:40 PM
AP IMPACT: Gov't mortgage partners sued for abuses

Aug 5, 3:59 PM (ET)

By DANIEL WAGNER


WASHINGTON (AP) - Billions of dollars the government is spending to help financially pressed homeowners avert foreclosure is passing through - and enriching - companies accused of preying on the people they're supposed to help, an Associated Press investigation has found.

The companies, known as mortgage servicers, are middlemen who collect monthly payments from homeowners and funnel the money to the banks or investors who hold the loans. As the only link between borrowers and lenders, they're in the best position to rework the terms of loans under the government's $50 billion mortgage-reduction program. The companies earn a fee for every successful loan modification.

But the industry has a checkered history. The AP found that at least 30 servicers have been accused in lawsuits of harassing borrowers, imposing illegal fees and charging for unnecessary insurance policies. More recently, the companies also have been criticized for not helping homeowners quickly enough - delays that lead to more fees for homeowners and profits for servicers.

The biggest players in the servicing industry - Bank of America, Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc. - all face litigation, some of which has led to settlements with homeowners. All will receive federal money to modify loans.

http://apnews.myway.com/article/20090805/D99SU91G0.html


Pruned by JPP Staph

Cancel 2018. 3
08-05-2009, 08:17 PM
we are talking billions, hundreds of billions...the mere mortals we elect cannot stop greed

uscitizen
08-05-2009, 08:19 PM
I thought Businesses had the moral resoloution regulate themselves?

Cancel 2018. 3
08-05-2009, 08:20 PM
I thought Businesses had the moral resoloution regulate themselves?

don't be obtuse....no one person, entity or group of people or entities are perfect....that is like me saying...how dare the dems regulate us and talk to us about stealing and bribes when the dems just had a guy convicted of that today

uscitizen
08-05-2009, 08:24 PM
Perfect no, criminal though? I have no crimes on my record.

Cancel 2018. 3
08-05-2009, 08:25 PM
Perfect no, criminal though? I have no crimes on my record.

you are perfect at playing obtuse....

let me speak in folksy kentucky language:

there are always a few bad apples in every bunch

uscitizen
08-05-2009, 08:26 PM
Looks like more than a few worms in that bunch of apples.

Cancel 2018. 3
08-05-2009, 08:28 PM
Looks like more than a few worms in that bunch of apples.

ok....you get the point though