Senator: Investigate Violations of National Mortgage Settlement

Senator: Investigate Violations of National Mortgage Settlement
Sen. Barbara Boxer, D-California.

A Senate Democrat is calling for an investigation into possible violations of terms reached a year ago as part of the $25 billion National Mortgage Settlement with five of the biggest lenders.
Sen. Barbara Boxer, D-Calif., urged Obama Administration officials to determine if borrowers are being denied protections, such as those against “dual-tracking” — foreclosing on homeowners who are trying to negotiate lower mortgage payments to avoid losing their homes.
Boxer wrote a letter Friday to U.S. Attorney General Eric Holder, Secretary of Housing and Urban Development (HUD) Shaun Donovan, and National Mortgage Settlement Monitor Joseph Smith.
“As a condition of the NMS (National Mortgage Settlement), participating banks agreed to ensure certain basic consumer protections in exchange for legal relief,” Boxer wrote. “However, while the banks have been relieved of that legal uncertainty, struggling homeowners continue to face a seemingly patchwork system that leaves them at risk of losing their homes.”
Other protections that should be investigated include the banks’ obligation to provide a “single point of contact” for borrowers to handle issues that arise and the requirement that servicers respond quickly to borrower concerns.
These alleged violations have surfaced in recent days after California homeowner advocates released surveys of nonprofit counselors and legal service providers who assist borrowers on a regular basis.
The survey of housing counselors also found that bank practices continue to disproportionately affect disadvantaged and hard-hit communities, including limited English proficient (LEP) borrowers, widows, and people with disabilities.
The banks that are parties to the settlement are Ally/GMAC, Bank of America, Citibank, JPMorgan Chase, and Wells Fargo.
Wrote Boxer: “In addition, the survey found that the banks continue to lose documents and improperly deny borrowers the assistance they seek to stay in their homes.
“These violations have meant that California homeowners – especially those in the most vulnerable populations – still are not receiving the assistance they need to stay in their homes, causing unnecessary harm to families, neighborhoods, and the state’s economy.”
NMS Monitor Joseph Smith responded this week to the allegations from the housing counselors.
“Through the complaints and my meetings with AG (attorneys general) staff, housing counselors and lawyers, I have gotten an earful about the issues that borrowers continue to experience,” Smith said. “… problems with single points of contact, dual tracking and the loan modification process in general are still occurring all too often. These are the issues that guide my conversations with the banks.”

2 thoughts on “Senator: Investigate Violations of National Mortgage Settlement

  • April 14, 2013 at 6:44 am
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    I think it is really time that the government should investigate the needs of homeowners when it comes to their housing problems. They should spend time on this issue first rather than looking for ways how a low credit person can avail home loans. They should solve the existing issue first than making a new one that will only create another problem eventually.

  • April 23, 2013 at 10:30 am
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    Dan
    April 23, 2013 at 10:11 am
    Hello
    Wells Fargo foreclosed on us, and did not even own the mortgage.
    I hired 3 different firms to try and work something out in the form of a
    Modification, Wells Fargo would not even discuss it.
    Then I ended up hiring 3 differ law firms to help file the Chapter 13
    All of these Firms were so busy raking in Huge profits from all the BK cases, that we could not even get one of them to do due diligence and file the correct papers.
    I spent over 20K on worthless Attorneys, we also filed every complaint under the sun and all of these Government agencies did NOTHING AT ALL, we never even received a reply from any of them.
    After all of this, I choose to become my Own Attorney Pro Se and straighten out the Chapter 13.
    This all took so much time, that even after being laid off in the worst depression on recent record, and being lucky enough to find something temporary 200 miles from home,.
    I also lost the temporary position after a year, as I was being summoned to court and harassed by Wells Fargo every other month.
    I finally negotiated a shotgun at my head modification with Wells Fargo, who refused to ever provide a single shred of any evidence that inflated my Mortgage by over 10,000.00.
    My new payments were higher than before, and this all cost me over 40,000.00 and surely took years off my life due to the stress and hassles.
    Now The FEDs and Bank Crooks want off the hook for a 1,000.00 per person with no disclosure at all.
    America, none of these crooks even went to jail; we were all ripped off BIG TIME.
    I Demand BETTER, and so should the rest of the Americans in this once great country.
    People need to be Jailed, Feds needs shut down.
    This is absolute BS, Call your Senators.

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