Big Banks Still Giving Homeowners the Runaround
Today, a report released by the Mortgage Settlement Monitor confirmed that big banks are still not up to the task of handling mortgage modifications effectively and fairly. This report confirms what many working families have learned the hard way: Big banks are still giving homeowners the runaround.
Last year, federal regulators and state attorneys general reached a settlement with the largest banks over foreclosure abuses. Under the settlement, banks acting as mortgage servicers must adhere to a set of basic standards for how they deal with borrowers seeking mortgage modifications.
The servicing standards include commonsense requirements that, for example, require servicers to notify borrowers if there are documents missing from their application for a mortgage modification. Yet, some of the banks failed to meet these basic requirements.
Six years after the onset of the crisis, the big banks still can’t get it right when it comes to processing mortgage modifications. In fact, one bank has been accused by former employees of intentionally and systematically obstructing the modification process.
The big banks’ ongoing failure to adhere to reasonable standards when dealing with struggling homeowners has disproportionately impacted communities of color, many of which have suffered an undue burden from the foreclosure crisis.
