Foreclosures Mean Big Money for Lenders
The Obama administration is trying to pressure mortgage companies to move quicker in lowering payments for homeowners facing foreclosure. But many observers believe lenders are dragging their feet because they collect lucrative junk fees on the delinquent loans.
The Obama administration is trying to pressure mortgage companies to move quicker in lowering payments for homeowners facing foreclosure. But many observers believe lenders are dragging their feet because they collect lucrative junk fees on the delinquent loans.
Wait, before you go…The New York Times:
This week, the Obama administration summoned mortgage company executives to Washington to demand they move faster to lower payments for homeowners sliding toward foreclosure. Treasury officials called on the companies to hire and train more people quickly to field applications for relief.
But industry insiders and legal experts say the limited capacity of mortgage companies is not the primary factor impeding the government’s $75 billion program to prevent foreclosures. Instead, it is that many mortgage companies are reluctant to give strapped homeowners a break because the companies collect lucrative fees on delinquent loans.
Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. So the longer borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services.
If you're reading this, you probably already know that non-profit, independent journalism is under threat worldwide. Independent news sites are overshadowed by larger heavily funded mainstream media that inundate us with hype and noise that barely scratch the surface. We believe that our readers deserve to know the full story. Truthdig writers bravely dig beneath the headlines to give you thought-provoking, investigative reporting and analysis that tells you what’s really happening and who’s rolling up their sleeves to do something about it.
Like you, we believe a well-informed public that doesn’t have blind faith in the status quo can help change the world. Your contribution of as little as $5 monthly or $35 annually will make you a groundbreaking member and lays the foundation of our work.
Support Truthdig
The California city’s wunderkind mayor has big plans—including a basic income plan—to make good on his buzzed-about potential.
Beverly Gologorsky's new book is "a rare working-class novel ... about the 2007-2009 foreclosure crisis and how it hit not those 'too big to fail,' but those too small not to be clobbered by it," writes TomDispatch editor Tom Engelhardt.
The Great Recession is officially over, but tell that to the increasing numbers of poor families scrabbling to hang on in a world that refuses to see or hear them.
The ride-hailing firms have skirted traditional transportation laws, flooding the streets with cars for hire and causing economic hardship for licensed cabdrivers.
The lawyer, a Republican and Trump supporter, asks Mnuchin to recognize the damage done by big banks.
One of the president’s closest friends, Southern California billionaire Thomas J. Barrack (pictured), bought up homes during the Great Recession, bumped up rents and allowed the properties to fall into disrepair.
There are currently no responses to this article.
Be the first to respond.