Sunday, October 10, 2010

At Least They Wrote A Sternly Worded Letter


In an interview this week, a senior administration official confirmed that the White House and Treasury Department had received warnings that the mortgage industry employed inexperienced staffers to oversee foreclosures, had problems handling documents and communicating with borrowers, and often failed to comply with regulations.

But the government had struggled to address shortcomings in the industry, the official said, because the administration was also seeking the servicers' help with modifying the home loans of millions of borrowers to help them avoid foreclosure.


The only immediate response to warnings was a letter to servicers urging them to behave better. But in June, the administration enacted a policy requiring that servicers try to modify a loan before beginning the foreclosure process.