Government Pays Mortgage Servicers Billions, While Homeowners Suffer

McClatchy Newspapers:

WASHINGTON -- The federal government is engaged in a massive mortgage modification program that's on track to send billions in tax dollars to many of the very companies that judges or regulators have cited in recent years for abusive mortgage practices.

Read the whole story: McClatchy Newspapers

Comments

[JoshPr]

I predict there will be no reform or change and Obammi will discourage his followers, hence losing 2012. Dems will also lose a lot of seats in the house in 2010.

good articles; http://iamned2.blogspot.com

Obama= fail

[sue805]

There is no accountability by these servicers. See this video- http://www.youtube.com/watch?v=2CZwXwXcUaA These are real people that have had their life savings taken due to the irresponsible, greedy actions of these mortgage comapnies and servicers. Thousands of dollars spent fighting just for the companies to acknowledge that they made a mistake, when they finally did come to an agreement, the mortgage company/servicer immediately sold the loan and the whole things starts all over again. Documents were signed, money was accepted, the new servicers don't care, they just all want money and add more and more fees on to the loan. Think it can't happen to you? Each time the servicer/mortgage comapny claims "not their issue", "should have brought this up before", "can't read the proof of payments you faxed". The run around is getting really old. It is like being on a Merry-Go-Round that won't stop so we can get off...

[TommyMcCarthy]

I could SWEAR that somewhere in there, we had an election.....did I just DREAM that??

[Loveforlife]

Barney Frank and others are responsible for this nightmare.

[afgail]

What is needed is for the Feds to take over the mortgage service companies like the FDIC does failed banks. Swoop in at 5:00pm on a Friday, remove and replace the management and investors, and open for business on Monday morning under new management and new owners. Will solve the problem almost over night and save a lot of Americans the grief and heart ache of having their homes stolen right out from under them. Come on Barney Franks, just DO IT!

[chasedeconomy]

Everything but the little people have become too big to fail

good articles; http://iamned.blogspot.com

Everyday we pay the consequences of Reaganomics

[TJCole]

Some "Community Organizer...!"

Overseeing the greatest displacement of Americans, in our nations history...

A nation that doesn't care if it's people have housing doesn't care about their health either...

We are a system of legalized bribery, a bribeocracy....not a democracy...any longer...

[dcboomer]

And a Plutocracy - a government controlled by a minuscule proportion of extremely wealthy individuals. .

[TJCole]

Exactly DC...the top.7% are still calling the shots...

[munki]

WHO IS ACCOUNTABLE?

Are we so inefficient ???????????????

[dnpvd51]

I rent and I pay taxes and now the government takes my money and gives it to the whining crybaby homeowners because they paid too much for their house.

Where are the lobbyists for the folks that rent?

[mlm4420]

You make the same comment on every post. So you pay taxes, so what. So does everyone else.

If you read the title of the article it says "servicers are paid billions while homeowners suffer" , it doesn't say anywhere that homeowners are gaining anything. You're preoccupied that unfortunate people who bought homes and got left holding the bag at the end of the day are going to benefit in some way that you will not be entitled to.

[dnpvd51]

The servicers are paid the money to bail out the homeowners that paid too much for their house.

I would like to also become a homeowner, but how can anyone buy a house with the government artificially inflating the price of housing?

I am pissed off that I have a government spending trillions of dollars against my best interests. the government is buying trillions in MBS, bank bailouts and homeowner bailouts.

[sheilaofmiami]

It is as if we never had an election.

[bobwalters]

Mortgage Servicers/Bankers = True blood-sucking vultures, cross between buzzards and vampire bats.

[hollybork]

If Pres. Obama continues to follow the policies of the Republicans and prop up the financial villains at the expense of our public treasury, then the democrats and most of the middle class will abandon
him. His presidency will be a disaster. He has to get rid of Geithner and Summers, and replace them with people who will tell him what is the best thing for the American People as a whole, and not what is best for the 1% at the expense of the people as a whole.

Obama is inexperiences, yes, but what does he believe? Does he want to grow the pie for the people as a whole, or keep the rich getting richer while the country is reduced to rags? I suspect he is not knowledgeable about economics, so Obama wants to hand off the ball, defer to the smartest momey man in the room. Unfortunately, he identifies that person as Summers.

Pres. Obama, smartness is a relative term. Bernie Madeoff was smart. So were Robert Rubin, Phil Gramm, Hank Paulson, Stan O'Neal, Frank Raines and Joe Cassino. We know whose pockets were being picked by these folks and whose pockets were being lined in gold. Now, Pres. Obama, whose side are you on. What do you really want your legacy to be? Try to channel FDR and see how good it feels to be on the side of the people, for once.

[Kassandra]

Well, allowing Bankruptcy judges to modify the loans would surely have helped, but congress just couldn't see their way clear to do something THAT populist. So cramdown wasn't passed with nary a whisper from the WH...but they DID pass some sort of law. I can't remember what it was.... Oh yeah , that bankruptcy judges couldn't modify mortgages, that's it.

They're gonna hafta do it now, as some in congress have been opining. either that or there will be a broad push for stuff like this to happen:

Legal relief for distressed homeowners
http://webofdebt.wordpress.com/2009/10/04/legal-relief-for-distressed-homeowners/

and it would help to read this to discover the why's and wherefores:
LANDMARK DECISION PROMISES MASSIVE RELIEF FOR HOMEOWNERS AND TROUBLE FOR BANKS
http://www.webofdebt.com/articles/mers.php

I hope it's becoming clear to everyone that we'll be getting no help from the Obama administration who thought they could throw our money at the banks and now, our homes to fend off losing the dollar as the world reserve currency.

I hope everybody gets over their apathy and starts getting serious about participating in their government again. They don't care? Let's MAKE 'em care!

[dnpvd51]

Instead of cramdowns why not just have the government give out free houses?

[patiencepatriot]

Word quiz:

Starts with "D" and rhymes with "HUH."

[sc300nc]

Another well run government program. They deserve to run our healthcare with their impeccable track record.

[rinpochet]

Any reason to bring "government" and "health care" into the conversation, right?

Medicare, social security, the VA and many other government programs are run very well. Some government programs do not run well and some private corporations do not run well (see Wall St. meltdown).

[sc300nc]

They are not run well. Where do you get your information? Social security? bankrupt. Meidcare? always running a huge deficit. VA? long waits for mediocre service. Is that what you want from your healthcare provider?

[PATina]

It's not that the program isn't "run well"... it's just not being run in the interest of the people who need it the most. And yes... I'm afraid w/o a single payer system (even a single payer option)... we will have another program that runs just as well... for the insurance industry... NOT for the people.