In a new article in Salon Magazine, writer David Dayen reports on new whistle blower charges that Banks are using the sale of their loans to third party servicers to evade regulatory settlement procedures. See the full article here.
The charges are pretty explosive and as Realtors trying to help clients in difficult circumstances something we all need to be aware of. Basically the article asserts that the banks, once they sell off the loan to a third party servicer, do not have to abide by any of the settlement procedures that have been put in place for their past actions. This, if true, seems like something the Federal banking regulators ought to be able to stop. The settlements requirements should follow the loan not the bank in my estimation. If the loan was flawed to start with the bank should not be able to evade fixing the problem.
Perhaps most alarming in the article are the assertions of the violations of the Fair Debt Collection practices that are rampant at some of these third party servicers. He names names in the article. I have personal experience with two of the ones he named, where we had to really fight on our clients behalf to stop some terrible abuses.
An interesting article for any Realtor involved in the short sales - loan modification side of the buisness.
Comments(0)