Suits Filed Against Sleazy Servicers – Treasury Knew

Thursday, August 6th, 2009 Bank Wrongs by DaveVW

“AP News reported today that mortgage servicers, the same mortgage servicers that have received and continue to receive hundreds of millions in federal funds to modify mortgages as part of President Obama’s Making Home Affordable program, are engaging in practices that would make the worst loan modification company in history look like the Boy Scouts of America.

According to the AP’s report, which came out today:

• At least 30 servicers are being sued for charging illegally high fees, using illegal collection practices, and foreclosing on homes prematurely.
• At least 14 have been accused lying to homeowners about whether they would qualify for loan modifications or how low their payments would be if they did receive a modification.  And in many cases, the servicers are accused of telling borrowers not to make payments because their applications for modification were being reviewed… and then moving to foreclosure anyway. ”

  Read more: http://mandelman.ml-implode.com/2009/08/suits-filed-against-sleazy-servicers-treasury-knew/