Mortgage servicers were one of the major causes of the current financial debacle. They were ill-equipped to deal with people and several of them have been cited and convicted in courts for a variety of offenses. Yet, many of these companies are participating in the Home Affordable Modification Program, which attempts to help people modify their current onerous mortgages. Of course, the servicers are not doing this gratis. They stand to make big bucks. And, some of them are owned by those to whom we gave money: Citicorp, Bank of America, JP Morgan.
Even beyond having to deal with these nasty people, our vaunted Treasury Department is not doing a very good job of overseeing this program. The GAO pointed to major gaps in the Treasury's oversight structure, stemming in part from a serious under-staffing situation (when will the Treasury be fully staffed? It's been almost 9 months now.) So, the servicers can still pick up their checks but do very little to earn them.
No comments:
Post a Comment