The Heat is on for Big Mortgage Lenders
A New York Times article this Wednesday discussed the hearings that took place this week between several state attorneys general and major mortgage lenders. Although the major lenders are being investigated for their foreclosure procedures, both the banks and the attorneys general agree that a recovery in the housing market is essential to repairing the overall economy. Their motives to resolve the situation, however, may differ.
The major mortgage lenders, like Wells Fargo and Bank of America, are under major pressure to keep good rapport with regulators and the general public. After all, Bank of America is the largest mortgage servicer in the nation. The bank handles “one in five American mortgages,” therefore it’s hoping to resolve the investigations quickly and painlessly.
State attorneys generals are eager for a swift resolve as well, but they’re also emphasizing a cautious approach to the matter. They see this as an opportunity to repair the lender system, but it must be done right to ensure that more homeowners can avoid foreclosure.
The biggest question is will there be a resolution? Ohio attorney general, Richard Cordray believes that “something will come of [it], no question [… but] whether it will be a meaningful resolution that will make a real difference or a missed opportunity [is] not entirely clear at this point”.
Let us hope that a clear resolution is reached sooner than later, because although several lenders are putting freezes on foreclosures while their procedures are being reviewed, data company Lender Processing Service claims “about 4.3 million households are either in serious default or in foreclosure”.
On a more positive note, government law officials aren’t the only ones putting pressure on the big lenders. In recent weeks, the National Realtors Association “approved a credit policy to urge the mortgage lending industry to reassess and amend their policies so more qualified home buyers can become home owners”. Making it easier for qualified buyers to become homeowners increases the potential for a full recovery in the housing market.
Courtesy of NYTimes.com and Realtor.org
Whether you’re a buyer, or one of the millions currently trying to avoid foreclosure, Angel Lynn Realty is your trusted source for buying a home and your understanding expert in the short sale process.
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