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Widespread Abuse by Mortgage Servicers Hurts Homeowners, Investors, Taxpayers, Economy

July 7, 2011
Mortgage Lending
Research

Mortgages servicers should be required to give every mortgage holder "a good-faith review of foreclosure alternatives" before taking steps to take his or her home, CRL president Michael Calhoun told Congress today.

In testimony before the House Financial Services Committee's Subcommittee on Financial Institutions and Consumer Credit and Subcommittee on Oversight and Investigations, he recommended that servicers be required to do the following:

  • exhaust alternatives before starting foreclosure proceedings
  • disclose the numbers they use to calculate whether a mortgage holder qualifies for a loan modification rather than foreclosure
  • provide meaningful, third-party reviews of loan modification denials
  • give each customer a single point of contact during the loan modification process.
  • end conflicts of interest in how they are paid and how they operate