Banks have been using non-bank servicing companies for the past few years. These servicing companies are not regulated by the modest consumer protections built into the National Mortgage Settlement Law of 2012. Non-bank servicing companies are known to take a long time to review mortgage modifications. They wrongfully deny mortgage modifications on a regular basis. The investors who buy the loans from the non-bank servicing companies are not interested in helping homeowners save their homes by working out amicable mortgage modifications.
Investors and Mortgage Modification
Private investors are becoming more involved with regard to the ownership of delinquent mortgages. In the year 2015 non-bank servicing organizations served approximately a quarter of the $10 trillion in outstanding mortgages on residents in the United States. This percentage of mortgages being serviced by non-bank servicing companies has expanded in both 2016 and 2017.
Oversight of Servicing Companies
Senator Elizabeth Warren of Massachusetts and Eliza Cummings of Maryland have looked into the need for oversight with regard to non-bank mortgage servicing companies. They recently made a joint statement “harm to consumers such as problems or errors with account transfers, payment processing, and loss mitigation processing have developed related to non-bank mortgage servicing companies.”
There are approximately 100,000 mortgage foreclosures going on in the State of New York. Homeowners often feel overwhelmed when dealing with non-bank servicing companies. The best way to deal with issues involving these servicing companies is to hire an experienced foreclosure attorney to represent you on these matters.
Elliot S. Schlissel and his associates have been representing homeowners throughout the Metropolitan New York area with regard to foreclosure cases for more than 45 years. They work hard to help keep their clients in their homes.
