As I said in a previous post...the government just doesn't get it.
PSAs with servicers do not allow the servicer to modify loans. BUT, if a servicer can pretend to modify with some paperwork, receive credits from the clueless government and then proceed with foreclosure, how is that NOT the absolute best of all worlds for the SERVICER? I wonder just what the percentage of these "modified" loans stick in the end?
Borrowers and investors are still under all the wheels of the bus...and I have been waiting for investors to rise up for quite some time now. I'll be watching this one.
Mortgage Investors to Send Letters on Ocwen 'Servicing Abuses'
Holders of residential mortgage-backed securities are planning to communicate with trustees and master servicers about Ocwen Financial Corp.’s practices, according to the Association of Mortgage Investors.
The group "unites RMBS around criticism of #Ocwen servicing abuses," the Washington-based trade organization said yesterday in a Twitter message. "Look for a forthcoming letter to Trustees, Mastr Servicers."
New York's top bank regulator last month asked Ocwen for information about potential conflicts of interest between the firm and affiliated vendors. DoubleLine Capital LP and Kathy Patrick, a partner at Gibbs & Bruns LLP who represents investors including BlackRock Inc. and Pacific Investment Management Co., have criticized a December settlement between the company and government as potentially harmful to mortgage-bond owners by offering credits to the servicer for reworking the loans backing their holdings.
"The Association of Mortgage Investors remains committed to the rights of investors," Chris Katopis, executive director of the group, said by telephone. "We are currently reviewing action against a number of servicers for their actions that have been harmful for both investors and borrowers."
He declined to comment further.