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Mortgage Mess Continues

13 April 2011 5 Comments

If you watched the recent 60 minutes segment (you can watch it here) on the continued mortgage mess – this time focusing on the false documentation and fraud that has penetrated the mortgage industry over the recent years – you know that the industry is anything but out of the woods.

A few years ago, we might have just worried that too many people borrowed too much, and a de-leveraging needed to occur.  Now, we know that is the case, but there’s much more to the story.

Incredibly, an unknown number (thousands? millions?) of homeowners can’t get accurate, official documentation as to who owns their loan.  I encourage you to watch the 60 minutes segment, and then consider calling your mortgage servicing company to request official documentation such as the assignment or mortgage letter.  Again, watch the 60 minutes segment linked above.

It will take years and an insane amount of money to “clean up” the residential housing and mortgage industries.  Years.  From now.

This thing got so out of control that it is hard to fathom.  How any regulators have kept their jobs through this mess is atrocious.  Of course, regulators will always fail to regulate appropriately.  The only regulator that really works is failure itself.  But failing in a free market economy is just mean and therefore, unacceptable.

CreditLoan has more information on debt and solutions to too much debt in one’s life.

Side note: I know a few people personally that are going through this process, and playing a bit of hard ball with mortgage servicing companies.  I will update my readers as to how it is going, and hopefully it might help you depending on your situation.

5 Comments »

  • Romeo said:

    Hello,

    I didn't catch the 60 minutes segment, but thanks for the link. I'll try to watch it when I find some time. I remember when I tried to refinance my home under the "making homes affordable" program. This is when I found that my bank had sold my mortgage to fannie mae. It was 2008 when I found this out. Apparently, selling mortgages off happens all the time. I guess mortgage ownership gets lost in the packaging.

    Romeo

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  • Valentine_505 said:

    It's far easier to place the blame on others instead of where it truly belongs. Simply pack up and move out and live in a place that you can afford, while allowing the banks to sell it to people who can currently afford to pay the mortgage. Then some day after your credit and finances are back to where you need them to be, then you can buy a home again. Quit this nonsense that the world owes you something because it's been unfair to you, or get in line behind the 6 billion other people that can say the same thing! Therefore, if you think that life has been really unfair to you, then place the blame on your parents for bringing you into this god forsaken world, instead of the banks or the company that laid you off, or even your health which only you can control, because it just looks bad!

  • Eloise said:

    You’ve hit the ball out the park! Incrdeible!

  • mortgage quality said:

    The false documentation and fraud that has penetrated the mortgage industry is really bad. But now, since it has been solved, the confidence of lenders and borrowers will now again be reborn and soar up.