Comment Letters

February 22, 2012 | Filed under: Mortgage, Real Estate & Housing

Mortgage Servicers Continue to Wrongfully Foreclose on Homeowners According to a Recent National Survey of Consumer Attorneys.

July 22, 2011 | Filed under: Mortgage, Real Estate & Housing

One of the key lessons from the last decade is that innovations in credit markets are double edged swords. They can be valuable and useful, but innovation can also fail, with significant broader consequences. Most recently, risky product design and lax underwriting led to disastrous results for millions of families. When these mortgage lending changes ultimately pervaded the market, they also spurred a series of events that caused the current recession. Dodd-Frank’s ability-to-pay provision is necessary because the industry abandoned common sense rules.

We appreciate the difficult task facing the Board in drafting the proposal, and the Bureau in finalizing it.1 We believe that overall the proposal is a balanced approach to difficult issues. However, the proposal also includes one provision – proposed in the alternative – which could seriously undermine the fundamental reform. We therefore discuss the proposal regarding the “safe harbor Qualified Mortgage” in depth in these comments.

May 13, 2011 | Filed under: Mortgage, Real Estate & Housing

The need for National Servicing Standards Is accute. Servicers do not believe that the rules that apply to everyone else apply to them. This lawless attitude, supported by financial incentives and too-often tolerated by regulators, is the root cause of the failure of HAMP and the wrongful foreclosure of countless American families. Whether servicers’ errors are the result of intentional wrongdoing or mere incompetence, the result is the same: homeowners, investors, and the communities we all live in suffer, while servicers ontinue to profit. Only national servicing standards, imposed uniformly on all servicers across the country, will rein the problem in.

April 14, 2011 | Filed under: Mortgage, Real Estate & Housing

The undersigned national labor, civil rights, consumer and community organizations call on you to withdraw the proposed consent orders issued to the nation’s mortgage servicers and to work with the state Attorneys General and United States Department of Justice to obtain a joint settlement that addresses illegal servicing practices in a meaningful manner. The draft consent orders that have been released to the press do not hold servicers accountable for illegal practices and do not stop avoidable foreclosures.

April 13, 2011 | Filed under: Mortgage, Real Estate & Housing

The record of lawbreaking and abuse by the largest banks and servicers at every stage of the mortgage origination, securitization, servicing and foreclosure process is breathtaking, and the damage done – to homeowners, communities, investors, pension funds, and the economy as a whole – is devastating.

We are writing to ask you to join us in pressing federal and state regulators and law enforcement officials to use their authority effectively to hold the lawbreakers accountable, and to craft solutions that will end wrongdoing, provide relief and restitution for injured families, and avert the disaster of millions of continuing foreclosures by requiring sustainable mortgage modifications including principal reductions. Strong resolutions of these issues are perhaps our best hope to end the misery of unprecedented levels of foreclosures, and to get our economy back on track by stabilizing the housing market. Weak settlements, on the other hand, especially weak settlements that preclude continued investigation and prosecution where needed, would amount to another bank bailout.

April 13, 2011 | Filed under: Mortgage, Real Estate & Housing

On December 1, 2010, the Motion for Sanctions1 filed by the United States Trustee (UST) came before the Court. At the beginning of the hearing, a request to bifurcate the issues presented was granted. Hearing on the sanctions to be awarded was deferred to a separate hearing, pending determination of liability for sanctionable conduct. After trial on the merits, the Court ordered that simultaneous briefs be submitted no later than February 1, 2011. Upon the filing of briefs, the matter was taken under advisement.

April 7, 2011 | Filed under: Mortgage, Real Estate & Housing

The undersigned national labor, civil rights, consumer and community organizations call on you to withdraw the proposed consent orders issued to the nation’s mortgage servicers and to work with the state Attorneys General and United States Department of Justice to obtain a joint settlement that addresses illegal servicing practices in a meaningful manner. The draft consent orders that have been released to the press do not hold servicers accountable for illegal practices and do not stop avoidable foreclosures.

December 23, 2010 | Filed under: Mortgage, Real Estate & Housing

Order Granting Defendants' Amended Motion for Summary Judgment - American Residential Equities

December 15, 2010 | Filed under: Mortgage, Real Estate & Housing

A November 2010 survey by the National Association of Consumer Advocates and the National Consumer Law Center demonstrates that mortgage servicers often initiate foreclosure proceedings improperly, either while a homeowner is awaiting a loan modification or due to improper fees or payment processing.
 

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