Modification Process Too Complex To Go Fast

Posted on August 4th, 2009 in All Articles.

Why are the larger banks failing to modify loans?

Excerpt from DSNews a lender insider periodical:
Of course, larger banks have more loans in the 60-day-or-more delinquency category that qualify for MHA modifications. And they have previously cited volume and understaffing as key issues that make it difficult for them to unwind their mortgage morasses.
The individual touch is often a necessity for modifications, too. Just last week, servicers who visited lawmakers in Washington complained that the modification process was cluttered and confusing to many homeowners, who often didn’t even know what assistance they qualified for. In such situations, smaller lenders with lesser volumes are at an advantage.
“Borrowers are quite confused,” Sanjiv Das, the chief executive of CitiMortgage – a subsidiary of Citigroup — told American Banker on Tuesday. “You have a lot of people who had lost a job or lost hours and are now faced with the prospect of not being able to pay their mortgages. They are not even sure what questions to ask with respect to the options they have on their mortgage.” from DSNews