Thursday, January 17, 2013

Doing more, doutful

"U.S. banks will have to do more to help struggling mortgage borrowers keep their homes under final rules to be released Thursday by a U.S. regulator.

Mortgage-loan servicers, which collect borrowers' loan payments, will have to evaluate troubled borrowers for all loan-assistance options permitted by mortgage investors such as Fannie Mae FNMA 0.00% and Freddie Mac, FMCC -0.70% as well as private investors, according to the rules from the Consumer Financial Protection Bureau, which take effect in a year.

Currently, no national standard exists for how mortgage servicers must treat defaulting borrowers.
The lending industry "must consider all options available from the mortgage owners or investors to help the borrower retain the home," said Richard Cordray, the consumer bureau's director, in remarks prepared for a speech Thursday in Atlanta. The industry "can no longer steer borrowers to those options that are most financially favorable for the servicer."

One if this is true it is a little to late, and two who is going to see that it is enforced...

No comments:

Post a Comment