In the newest SIGTARP Report dated January 27, 2016, reviewing the use of bailout TARP money and the shenanigans of your favorite large financial institutions to abuse and damage the people they received money to help, get your smelling salts and vapors because the findings are, wait for it, yes, loan servicers are still abusing homeowners and getting away with it on the regular:
Given the high percentage of homeowners falling out of HAMP and known problems with servicers not following HAMP rules, in October 2013, SIGTARP recommended that Treasury research and analyze whether, and to what extent, the conduct of HAMP mortgage servicers contributed to homeowners redefaulting on HAMP permanent mortgageAlthough Treasury has not conducted a full analysis, Treasury has partially implemented SIGTARP’s recommendation, and reviews samples of 100 homeowners who had redefaulted out of HAMP at each of the largest HAMP servicers each quarter as part of Treasury’s on-site and remote compliance testing at each of the largest servicers. SIGTARP’s concerns over servicer misconduct contributing to homeowner redefaults in HAMP have been borne out. Treasury’s findings in its on-site visits to the largest seven mortgage servicers in HAMP over the most recent four quarters show disturbing and what should be unacceptable results, as 6 of 7 of the mortgage servicers had wrongfully terminated homeowners who were in “good standing” out of HAMP.v These staggering findings clearly show that servicer misconduct is contributing to some homeowners falling out of HAMP. Homeowners were wrongly terminated from HAMP by their servicer despite making timely mortgage payments, putting them at risk of losing their home. These homeowners were forced out of HAMP through no fault of their own. Mortgage servicers did not give these homeowners a fair shot. As these instances were found through sampling, Treasury does not know how many other homeowners were also wrongfully forced out of HAMP.
Once again, bravo and well done, servicers Bank of America, N.A. CitiMortgage Inc JPMorgan Chase Bank, N.A. Nationstar Mortgage LLC Ocwen Loan Servicing, LLC Select Portfolio Servicing, Inc. Wells Fargo Bank, N.A. and the rest of you!! Your parents must be so proud.
Also, a special congratulations and shout out to bank lawyers and to those members of the judiciary who continue to turn a blind eye, an impressive feat given the sheer numbers of homeowner cases brought against these servicers to try to eke out the slightest dribble of relief.