State AGs pressuring banks to fix loan modifications
The Wall Street Journal reports (New Pressure on Loan Modifying, 11/17/10) that state attorneys general are said to be putting pressure on lenders, including JP Morgan Chase, to fix the loan modification system, largely seen as not offering a sufficient number of loan modifications and performing too many foreclosures, as a condition of settling the lawsuits on the false foreclosure paperwork brought by the states.
Additionally Senators of both parties are urging banking regulators to increase scrutiny of foreclosure operations.
The lead attorney general in the probe, Iowa’s Tom Miller, claims that part of the issue with loan modifications “lies with servicers who see it as more profitable to foreclose on homeowners than to undertake modifications.”
This seems clearly to be the case with Chase, who practices parallel foreclosure and seems to put up every impediment possible to people seeking loan modifications.
Foreclosure, Loan modification | admin November 17, 2010
