Wednesday, April 13, 2011

New Mortgage Servicing Rules On The Way - But Will It Matter?

According to the USA Today, federal banking regulators are preparing to announce new rules for mortgage servicing companies.  In addition to requiring servicers to follow state and federal laws in dealing with borrowers (well, aren't they ALREADY required to follow state & federal laws?), companies would also be required to:

-Stop foreclosure proceedings when delinquent borrowers are in compliance with terms of modified loans.

-Give distressed homeowners a single person to contact at the giant companies.

-Hire independent consultants to review some of their foreclosures.

-Require companies to make sure they have enough workers and that those workers are properly trained.

To summarize, these NEW rules will require companies to follow existing laws, stop foreclosures when people are complying with their terms, give consumers someone to talk to, review their procedures, and hire and train adequate workers.  We need new laws for this?  Shouldn't servicers already be doing all of this at minimum?  Color me unimpressed.  


Brenda Stone said...

Going to enforce those laws, NOW, huh?

Thanks, Alex.

Alex Y. said...

You know how mortgage docs have the form that you sign that attests that you signed the other form that you just signed? This is going to be the law that says you must follow that other law that's already a law.