Fear of Past Mistakes Holding Back FHA Modification Program


Posted To: MND NewsWire

The days when published a monthly tally of the number of loan modifications made by servicers under several public and private sector programs are long gone, but modifications are still needed and memories of the missteps and chaos that accompanied the process linger. The recent assessment by the Consumer Financial Protection Bureau (CFPB) of their post-crisis rules for mortgage servicers indicate there were lessons learned , but maybe not enough of them. Four Urban Institute analysts* suggest, in a recent article in the Institute’s Urban Wire blog, that the FHA still allows and/or requires its servicers to employ some loan modification guidelines and procedures that are cumbersome, maybe even nonsensical for borrowers and increase costs for servicers. Borrowers applying for loan modifications…(read more)

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