One of the greatest frustrations that homeowners seeking mortgage loan modifications have experienced is the constant back-and-forth with multiple mortgage servicer employees, which often results in lost paperwork and their having to submit the same documents multiple times.
The Treasury Department on Wednesday issued a directive that requires the nation’s top 20 largest mortgage companies to provide a single source of contact, or relationship manager, for borrowers applying for modifications through the Home Affordable Mortgage Program. That person cannot be a contractor and must work directly for the mortgage servicer and will be responsible for working with the borrower throughout the process until the modification has been denied or approved and the delinquency is resolved.
“I commend the Treasury Department for taking this small, but critical step to help struggling homeowners and hold mortgage servicing companies accountable for their actions,” said Rep. Elijah Cummings (D-Maryland) “Lost paperwork, conflicting guidance, and ‘dual-tracking’ problems have been well-documented, and according to the Special Inspector General for TARP, the performance of mortgage servicing companies has been ‘abysmal.’ This is one modest step in the right direction, but much more needs to be done.”
House Republicans voted in March to repeal HAMP, but the White House has vowed to veto the bill should it reach the president’s desk, which is highly unlikely.
(Photo: Scott Olson/Getty Images)