I believe the best laugh is the quote from Ocwen when asked about the waiver of legal rights clause in their modifications:
Some advocates were particularly surprised to find that Ocwen had used the waivers, considering the servicer has been leading
the industry in doing loan modifications. But Paul Koches, general counsel for Ocwen,
said his company was just as surprised, and called their inclusion a mistake.
The waivers had been “fairly standard practice” in loan agreements for years, he said. But in late 2008, after meeting with representatives of the National Community Reinvestment Coalition and hearing concerns about the waivers, Ocwen agreed to remove them from all loan modification agreements.
The company assumed all the waivers were gone, until Thompson’s testimony showed otherwise. Ocwen then realized one of its old forms still included the waiver. Ocwen is working to fix the form. Only a handful of borrowers were affected, and they’ll be assured the waivers won’t be enforced, Koches said.
A Year After Calls for Reform, Borrowers Still Forced to Waive Legal Rights for Loan Modifications
Even as the Obama administration presses the lending industry to get more mortgage loans modified, the practice of forcing borrowers to sign away their legal rights in order to get their loans reworked is a tactic that some servicers just won’t give up on.
Waivers requiring borrowers to give up any legal claims related to their mortgages, even in cases where they might be victims of predatory lending, are showing up sporadically in loan modification agreements under the Obama administration’s Making Home Affordable plan, consumer attorneys say. They were stunned to find the legal waivers still being used, despite more than a year of efforts – including calls from lawmakers – to get rid of them.
The entire article can be found here: