Obama Proposal Sent to Mortgage Lenders
Obama Proposal Sent to Mortgage Lenders
Obama Proposal Sent to Mortgage Lenders
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March 7, 2011 (Chris Moore)
mortgage-banks-pay-image
The nation’s largest mortgage lenders received a 27 page proposal from state attorneys general and several federal agencies that could require them to reduce loan balances of troubled mortgage borrowers. The proposal reportedly does not specify penalties or fines at this time, but instead represents a detailed code of conduct for how they must treat borrowers throughout the loan modification process.

The proposed code of conduct seeks “a binding legal requirement” for banks to first consider reducing loan balances of mortgage borrowers in certain instances before modifications or foreclosure.

According to Geoff Greenwood, a spokesman for Iowa Attorney General Tom Miller, “This is a document that sets a foundation for negotiations with the nation’s largest servicers.” Greenwood declined to identify the companies or say how many received the proposal, made by states and U.S. agencies including the Justice Department, Federal Trade Commission (FTC) and Department of Housing and Urban Development (HUD).

The states and federal agencies haven’t yet agreed on the monetary penalties they will seek from the companies, according to a person familiar with the matter who declined to be identified because the talks are private, however, reports last week from sources close to the Obama administration reported that fines could amount to over $20 billion. The government officials also are discussing a proposal for loan-modification procedures, the person said.

The FTC is also examining a “a variety of practices” among mortgage servicers, including whether they post payments on time and maintain accurate records, and methods they use to collect on defaulted debt.

The Office of the Comptroller of the Currency separately sent cease-and-desist orders to mortgage servicers, according to a person familiar with the matter. Bank of America, JPMorgan and Citigroup Inc. are among the eight national banks that are expected to get an enforcement document of some kind.

Negotiations with lenders over the final terms of an agreement are expected to begin next week, although it is not clear how long that might take. Some sources indicated an agreement might be reached fairly quickly.

Tags: mortgage lenders, mortgage servicers, state attoneys general, federal agencies, code of conduct, mortgage borrowers, monetary penalties, loan modifications

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Helpful Tools
Mortgage
Calculator

Estimate your monthly mortgage payment
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about the different types of home loans
15 Year vs 30 Year
Loan Comparison

Compare 15 year and 30 year mortgage loans
Todays Mortgage
Rates

See today's mortgage rates. Shop, compare and save.

March 7, 2011 (Chris Moore)
mortgage-banks-pay-image
The nation’s largest mortgage lenders received a 27 page proposal from state attorneys general and several federal agencies that could require them to reduce loan balances of troubled mortgage borrowers. The proposal reportedly does not specify penalties or fines at this time, but instead represents a detailed code of conduct for how they must treat borrowers throughout the loan modification process.

The proposed code of conduct seeks “a binding legal requirement” for banks to first consider reducing loan balances of mortgage borrowers in certain instances before modifications or foreclosure.

According to Geoff Greenwood, a spokesman for Iowa Attorney General Tom Miller, “This is a document that sets a foundation for negotiations with the nation’s largest servicers.” Greenwood declined to identify the companies or say how many received the proposal, made by states and U.S. agencies including the Justice Department, Federal Trade Commission (FTC) and Department of Housing and Urban Development (HUD).

The states and federal agencies haven’t yet agreed on the monetary penalties they will seek from the companies, according to a person familiar with the matter who declined to be identified because the talks are private, however, reports last week from sources close to the Obama administration reported that fines could amount to over $20 billion. The government officials also are discussing a proposal for loan-modification procedures, the person said.

The FTC is also examining a “a variety of practices” among mortgage servicers, including whether they post payments on time and maintain accurate records, and methods they use to collect on defaulted debt.

The Office of the Comptroller of the Currency separately sent cease-and-desist orders to mortgage servicers, according to a person familiar with the matter. Bank of America, JPMorgan and Citigroup Inc. are among the eight national banks that are expected to get an enforcement document of some kind.

Negotiations with lenders over the final terms of an agreement are expected to begin next week, although it is not clear how long that might take. Some sources indicated an agreement might be reached fairly quickly.

Tags: mortgage lenders, mortgage servicers, state attoneys general, federal agencies, code of conduct, mortgage borrowers, monetary penalties, loan modifications

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

March 7, 2011 (Chris Moore)
mortgage-banks-pay-image
The nation’s largest mortgage lenders received a 27 page proposal from state attorneys general and several federal agencies that could require them to reduce loan balances of troubled mortgage borrowers. The proposal reportedly does not specify penalties or fines at this time, but instead represents a detailed code of conduct for how they must treat borrowers throughout the loan modification process.

The proposed code of conduct seeks “a binding legal requirement” for banks to first consider reducing loan balances of mortgage borrowers in certain instances before modifications or foreclosure.

According to Geoff Greenwood, a spokesman for Iowa Attorney General Tom Miller, “This is a document that sets a foundation for negotiations with the nation’s largest servicers.” Greenwood declined to identify the companies or say how many received the proposal, made by states and U.S. agencies including the Justice Department, Federal Trade Commission (FTC) and Department of Housing and Urban Development (HUD).

The states and federal agencies haven’t yet agreed on the monetary penalties they will seek from the companies, according to a person familiar with the matter who declined to be identified because the talks are private, however, reports last week from sources close to the Obama administration reported that fines could amount to over $20 billion. The government officials also are discussing a proposal for loan-modification procedures, the person said.

The FTC is also examining a “a variety of practices” among mortgage servicers, including whether they post payments on time and maintain accurate records, and methods they use to collect on defaulted debt.

The Office of the Comptroller of the Currency separately sent cease-and-desist orders to mortgage servicers, according to a person familiar with the matter. Bank of America, JPMorgan and Citigroup Inc. are among the eight national banks that are expected to get an enforcement document of some kind.

Negotiations with lenders over the final terms of an agreement are expected to begin next week, although it is not clear how long that might take. Some sources indicated an agreement might be reached fairly quickly.

Tags: mortgage lenders, mortgage servicers, state attoneys general, federal agencies, code of conduct, mortgage borrowers, monetary penalties, loan modifications

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.