Your Distressed Property and Short Sale Expert in Maryland

 How could they say such a thing?

Just ask the investors who are also beginning lawsuits against the lenders for recklessly endangering their funds.

FAFA, which oversees Fannie Mae and Freddie Mac took steps to review lending practices and how loans are managed by banks. Now the incentive is to foreclose rather than modify loans because loan servicers get to charge fees that are collected from the investor when a foreclosed property sells. Modifying loans reduces the fees loan servicers receive.

* FHFA wants to find a better model that better serves the interests of borrowers, servicers, originators, guarantors, and investors

 . Presently originators and servicers are aligned against the other parties because of the fee structure.

* The second issue FHFA is looking at is an attempt to end reckless lending practices. The concern is whether to more tightly regulate what banks can do with the mortgages they routinely bundle and sell as seciritized investments, pasing all risk to the purchasers. 

Treasury has proposed that banks, as per the Dodd-Frank law, be required to hold onto a portion of the investments(minimum of 5%). The idea is that banks will not ignore the risk associated with lending.

FHFA stated that no changes to the servicing model will be enacted before 2012.

Contact you Congressional delagation and tell them you support regulating banks to ensure more responsible lending practices.

 

Dennis

Keeping People From Experiencing Foreclosure

www.MarylandDistressedProperties.com

www.Frederick-MontgomeryCountyHomes.com

 

Dennis Helmstetter, Associate Broker/Realtor

Certified Distressed Property Expert

Real Estate Teams LLC

O: 301-695-3020

C: 240-409-3966

E: dhelmstetter@mris.com

Site: www.MarylandDistressedProperties.com

Site: www.Frederick-MontgomeryCountyHomes.com

 

 
Post is included in group: Maryland Real Estate and Mortgage Group
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Dennis Helmstetter

Frederick, MD

More about me…

Real Estate Teams LLC

Address: 50 Citizens Way, Suite 400, Frederick, MD, 21701

Office Phone: (301) 695-3020

Cell Phone: (240) 409-3966

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