Mortgage Mess

ABC News has a video segment called “Demystifying the Mortgage Mess.” It is reported by Betsy Stark and is 2:51 long. Excerpts

Mortgage servicers are the frontline in the homeowners quest for help. They are the middle-men who send out monthly bills and process payments on behalf of the investors and banks that own the loans.

[ . . . ]

Mortgage servicing was never set up to be a “customer service” business. Servicers are not financially motivated to help home owners. They make revenue when a home owner falls behind. And that revenue is just millions of dollars a year in late fees and other kinds of default fees. hAnd that’s not the only thing standing in the way of re-negotiating your loan. The days of calling your local mortgage banker are over. Now many mortgages are turned into fancy securities owned by global investors who do not make deals with individual borrowers.

Things have changed drastically and it is kind of scary. Impersonal corporations whose only goal is to maximize net earnings that lack any compassion at all appear to be the new “normal.”

Sad, so sad.

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