Treasury Officials Set Goal for 500K Loan Modifications by Nov., Plan to Audit Rejected Loan Mod ApplicationsExcerpt:
"The National Consumer Law Center, which presented testimony to the Senate earlier this month, has identified dozens of ways in which some mortgage servicers have failed to follow guidelines set by the part of the Making Home Affordable Program that focuses specifically on loan modifications, the Home Affordable Modification Program (HAMP), which pays servicers at least $1,000 for each loan modification. The Government Accountability Office, meanwhile, issued a report last week concluding that there are "gaps" in the Treasury Department's oversight of the program.
Sen. Chris Dodd, D-Conn., has asked the administration to investigate alleged abuses of the program. The alleged violations by mortgage servicers include:
Charging advance fees for loan modifications.
Telling homeowners they must be in default before becoming eligible for loan modifications.
Starting foreclosure proceedings even while a homeowner is under consideration for a loan modification."http://abcnews.go.com/Business/story?id=8200826&page=1