Re: More news on loan mods

Posted by steele in minnesota on January 05, 2009 at 07:04:15:

In Reply to: Re: More news on loan mods posted by cmc on January 05, 2009 at 06:46:03:

It is very common that mortgages are sold and the originator keeps the servicing rights. Wells Fargo has a huge business doing this.

So, yes, only the actual owner of the loan could do a mod. Makes perfect sense.

As to banks deliberately gathering paper just to have something to do, or just to stall the consumer...

A bit cynical. I would venture to guess it is as much a function of too few people handling too many files. With all the selling of mortgages, as pools and individually, it is not surprising that one doesn't know the end owner right off the bat. It is also not surprising that such owners are not crazy about loan mods. Especially with the default rates being reported.

No, I can't agree that the selling of mortgages and mortgage back securities is the reason for our current situation. Unless we start to admit that too often people were given mortgages that shouldn't have been. It cuts both ways.

There are no easy answers on this one. And ultimately it has to be win-win. Or least least not so bad a loss-not so bad a loss.

One thing for certain (my opinion), the blame game gets us no where.

Steele

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