Statutory language may be narrowly interpreted by courts. Federal legislation may preempt state legislation. The "third wave" of mortgage modification litigation will likely continue for some time with lenders frequently prevailing.
They face ongoing frustration in dealing with servicers while they implement their programs, time delays, lost paperwork, and stress. Add to that a lack of accountability on behalf of the banks and faulty practices like robo-signing, and homeowners are vulnerable to mistakes and wrongful practices.
Through recent revisions, the government hopes that its program will provide relief to more homeowners and make a bigger impact on the housing market by enabling more homeowners to prevent foreclosure.
The IMF's public approval of mortgage reductions, as well as reform in the financial sector, is intended to provide support to the economy and reignite a healthy increase in lending, which will spur economic and job growth.