New Rules Aimed To Protect Homeowners From Foreclosure

[Fire Walk With Me]

http://no2housingcrime.blogspot.com/2013/01/new-rules-aimed-to-protect-homeowners.html

via Carlos, Occupy Fights Foreclosures

NEW YORK (CNNMoney)
Federal officials issued new rules for mortgage servicers Thursday aimed at protecting homeowners facing foreclosure. But consumer groups say the rules don't do enough to help prevent borrowers from unnecessarily losing their homes.
Since the housing crisis began, many mortgage servicers -- which collect payments for the owner of the loan and handle things like loan modifications and foreclosures -- have been ill equipped to handle the flood of delinquent loans, the Consumer Financial Protection Bureau said.

"In too many cases, it has led to unnecessary foreclosures," said CFPB director Richard Cordray. "Our rules ensure fair treatment for all borrowers and establish strong protections for those struggling to save their homes."

Among the new rules are restrictions that prohibit servicers from foreclosing on borrowers who are seeking loan modifications and rules that require them to explore all alternatives to foreclosure. There are also guidelines for issuing clear, straightforward mortgage statements.

Yet, consumer advocates say the new rules don't go far enough.

(More at the link.)

[dkf]

1. Why doesn't the federal government just refinance these loans and take it on themselves?

Yeah we the people will get stuck holding the bag but we are the ones who want to keep people in these homes and likely they are Fannie or Freddie loans anyway.

Forget about write downs, just give decent mortgage rates and let it sort itself out.

[Fire Walk With Me]

2. Fannie and Freedie are bastards as well, they're of zero help.

I've been in one of their rental properties during a press release and they'd allowed it to fall to true slum conditions, and didn't care or answer tenants' queries.

[dkf]

3. Well maybe we need another true government entity.

Not a quasi one.

I'm saying that we the taxpayer are probably on the hook anyway as we have been bailout out Freddie and Fannie.