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View Diary: Control Fraud: Obama's Ticking Time Bomb (25 comments)

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  •  Lookie here at this article, wavpeac: (11+ / 0-)

    Improper fees play part in crisis; Servicers may benefit from loans in default
    By Kirsti Marohn, sctimes.com, March 15, 2009

    Charging improper or unexplained fees is a common practice for some mortgage servicing companies and is a larger part of the national foreclosure crisis than most people realize, experts say.

    [....]

    The servicing companies don’t actually own the loan, so they may not have a strong interest in providing good customer service. In fact, they may have an incentive to force a homeowner into foreclosure.

    The more defaults they have, the more fees they collect, the more money they make,” said David P. Leibowitz, a Chicago-based foreclosure defense attorney.

    I found this article from the Home Equity Theft Reporter, which I read every day. Thanks to you and snackdoodle for your relentless reporting on the topic of lending & mtg servicing fraud.

    •  Thank you...late to this. (0+ / 0-)

      Great article and this is the reality that all my googling finds time and again. I just think in the end it's going to be as much about the fees, the fraud, the illegal behavior as about anything the actual borrowers did.

      The greatest gift you can contribute to the goal of world peace is to heal.

      by wavpeac on Mon Mar 23, 2009 at 08:45:42 AM PDT

      [ Parent ]

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