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hotblazer

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What's Happening Now

September 13, 2012 9:01 pm

Moderator, I think the list of reasons that the servicer does not have to respond is open for abuse and continual stalling. Most information that consumers ask for or need are just a few keystrokes away for the servicer, but they make it difficult if not impossible for consumers to access that information. I hope the new rules will bring relief to homeowners, but right now the servicers have no real obligations or duties to the homeowners. The entire mortgage servicing system is flawed from the start.

August 16, 2012 10:23 pm

When you state ALL borrowers, it truly should be ALL borrowers. My case is not unlike many thousands of homeowners across the Country, but I’ll bet many have not even heard of this situation. If a homeowner files for bankruptcy but keeps the home and continues to pay on time, don’t you think the deserve to receive statements? Some servicers are now cutting off ALL contact with persons with past bankrutcies, no statements, no web access, no infomation on how much was paid in interest so the homeowner can’t file income taxes etc etc etc… think about how you would deal with a complete and udder blackout of information on your loan? This is happening right now to homeowners everywhere. I think bankruptcy should not be used as an excuse to abuse homeowners who have already… more »

…suffered enough. A rule protecting ALL borrowers needs to brough into focus. If the homeowner REQUESTS statements, then the servicer is not in violation of an automatic stay. So CFPB needs to close this loop where the servicers is abusing the homeowner. This trend is just starting, and with one rather notorious non-bank servicer now snapping up these servicing rights, more and more homeowners in or through bankruptcy will be shut off from any info on their loans. This is a simple fix for the CFPB without stepping on any BK rules, just require servicers to provide online access and monthly statements when the homeowner specifically requests. Pretty simple, huh? Thoughts anyone? « less
August 16, 2012 11:09 pm

Coupon books should only be for borrowers who request them, at their own peril I might add. If a small servicer wants to only provide coupon books, then they should at least OFFER online access as well so the borrower can track when payments were posted and if any fees are being tacked on. Personally I think coupn books are an outdated tool for the mortgage servicing industry. Why would anyone TRUST a servicer after all of this?!?!

August 17, 2012 9:23 pm

Thank you for giving me a voice and sharing. Let me first give you some background so you can fully understand what has happened. My partner developed cancer without medical insurance. This catastrophic event eventually led me into bankruptcy. My partner died 3 weeks before I recieved the Chapter 7 discharge. Three weeks AFTER the discharge, I signed permanent HAMP modification documents that lowered the payment on my house. Even though it is well over $100,000 underwater, it is still my home and I want to keep it. My servicer honored the permanent agreement and I paid my mortgage every month for over a year with no issues. My servicer provided online access as well as monthly statements. the monthly statements have a disclaimer at the bottom that read: “Aurora Bank is a debt collector.… more »

…Aurora Bank is attampting to collect a debt and any information obtained will be used for that purpose. However, if you are in bankruptcy or received a bankruptcy dischagre of the debt, this communication is not an attempt to collect the debt agaiinst you personall, but is notice of a possible enforcement of the lien against the collateral property.” This statement protects the servicer against any automatic stay violations, it’s standard throughout the industry. I was lucky to recieve a HAMP mod and was one of the success stories about HAMP. But suddenly Aurora closed, and the servicing rights went to a non-bank company. This is after over a year of success. The new servicer is the one not providing statements. Why? They quote “It is our policy to deny online access to accounts and will not provide mortgage statements to anyone who has had a bankruptcy and did not reaffirm the loan”. So this is not about violating any bankruptcy law, they simply choose to not cooperate, or worse are trying to leverage the statement information to get people to reaffirm! Why did I not reaffirm? No bankruptcy judge would reaffirm a mortgage that was $100,000 underwater at the time. The judges go out of their way to not approve reaffirmation agreements because it is not in the best interest of the debtor. Simple as that. So the new servicer could easily just pick up where the old servicer left off, but they refuse based on their own unfair policy. Why would they pull such a dirty trick? Perhaps because they make more money on defaulting loans, they keep the fees and the investor gets what’s leftover after a foreclosure sale. So if they make it difficult for the homeowner, many will just give up and walk away. The servicer then gets the “fees” after the sale. How nefarious is that? Also the non-bank servicer does not have to answer to most Government Financial regulations, the FDIC, Treasury, Office of Currency Comptroller do not oversee non-banks, so there is no way to file a complaint with them. I was lucky to find CFPB, I just pray you can intervene not only for me, but the many thousands more out there suffering though this latest nightmare. So in summary, a simple disclaimer is all the servicer needs for bankruptcy cases, and if the homeowner is asking how could it possible be a violation? The rules you propose still do not protect bankruptcy cases because the servicer is not required to include a disclaimer so the bankrupt homeowner can keep getting statements. Same with online accounts. This MAJOR servicer has found a loophole and is exploiting it. Here’s a suggestion, maybe you could propose a rule that the servicer shall make a good faith effort to help homeowners with bankruptcies stay in their homes by offering statements with the standard disclosure phrase. By accepting the terms of the online agreement and the monthly statement, the homeowner would agree that it is not a viloation of the automatic stay. It’s sad that I find myself battling a servicer a year after everything was stabilized. I am tired of fighting. « less
August 17, 2012 9:32 pm

I don’t know, maybe. I just think a coupon book is not realistic in the year 2012. My opinion. But if you give servicers the option to issue coupon books, how many borrowers would suddenly get this once a year book they didn’t want nor were expecting? I guess you just need to think about whether a servicer would abuse the rule. What I can tell you is, not all servicers are bad, my last once was very nice to me. But some are up to no good, and are unapologetic about it. So think about the worst case scenario and word your rules carefully.

August 18, 2012 11:38 am

First, I don’t think it is appropriate to call people names, and your disrespect of the President is in poor taste. Now, as a servicer you are directly involved with the business side of what has happened. Many of your counterparts have, and continue to engage in outrageous behaviors that have affected millions of homeowners. The mortgage service industry has been engaging in acts from predatory to outright fraud. You might be small bank, but your bretheren are to blame for bringing shame to your industry. It is not a “few” cases here and there, it is systematic. So go yell at the servicers who turned your industry into the most untrusted “service” this Nation has ever seen. The public DOES NOT TRUST YOU ANYMORE. The Government has to step in because your industry… more »

…PROVED it could not self-regulate, it could only pillar, plunge and abuse. Maybe not your bank, but plenty of others did and still do. The CFPB was created because of the conduct of mortgage servicers. If your counterparts had been acting in good faith, the CFPB would have never been created. The mortgage service industry needs to take a hard look in the mirror, and start giving service back instead of trying to take advantage of the American public. « less
August 19, 2012 10:20 pm

I have to disagree with this thoery. Real Estate is very much local, and everyone needs housing. Your proposal does not take into account that the average single home in San Francisco is valued well over $300,000. So is NYC, Honolulu, LA, San Diego… I don’t know where you live, and perhaps a $300,000 home in your area is a benchmark for the well to do. But $300,000 is not even a starter home in some areas. Why punish the average citizen of those cities just because of where they live? Great plan for those in Ohio, not so great for those in California.

August 19, 2012 11:27 pm

So you resort to calling names when someone disagrees with you? For the record I am not in the real estate business, I’m in the military. So your rant is without merit. And the median home in your area of CO (80231) is only $192,000, how convenient of you to suggest imposing rules on others that would not affect you. I will not resort to calling you names, your actions say it all for you.

August 19, 2012 11:44 pm

It looks like you want a debate, but I’m not interested. Try a debate team or something.

August 20, 2012 7:05 pm

Thank you for giving me a voice during this difficult time. I realize the “effective comments” should be structured in a clinical fashion, but I am not cut from that kind of cloth so please bear with me. Much of my story can be found in the Periodic Statements comments, it’s quite lengthy but a true story none the less. After reading those comments you will see that forcing borrowers to immediately pay the new servicer can have unexpected consequences if the new servicer is not cooperating with the borrower. My old servicer did an excellent job of providing monthly statements as well as online access. The new servicer refuses to provide any loan information at all to me, not even what the payment is suppossed to be. During this 60 day window I have paid the old servicer twice,… more »

…once for July and once for August. As long as I pay before the first of September, I am still o.k. under the current RESPA rules. I will pay my old servicer one last time since the new servicer will not let me use my online bank bill pay. After that I will have to send checks via certified mail to a company that will not give me anything for information in return. The value in my story is that despite all the rules and regulations, you can not force a company to act in good faith, unless there is a law requiring them to. So to mitigate any harm to the borrower, who is at the mercy of the servicer, CFPB should err on the side of the consumer. Think of it a a 60 window of opportunity, one where the borrower has the ability to pay the old servicer until any issues with the new servicer can be worked out. My issue is not solved. Restricting the consumers ability to pay the old servicer has absolutely no benefit to the consumer, it only benefits the new servicer. « less
August 20, 2012 7:22 pm

I wrote a QWR to my new servicer. It took three weekes for them to send an aknowledgement letter back. I’m not a trial lawyer, just a consumer with very limited resources. The QWR was perhaps the only tool available to consumers to get information, eliminating it seems counterintuitive of what consumer protection is all about. Where did CFPB get the data that “it is often trial lawyers, rather than ordinary consumers” who submit QWR’s? I would be skeptical if that claim comes from the servicers. My QWR asked for a lot of information because the new servicer won’t give me anything. CFPB needs to understand that some servicers will take advantage of whatever rules you impose, and if you want to protect the consumer you need to strengthen their rights, not weaken them.

August 21, 2012 8:06 pm

Yes I do think the timeframes are more realistic. Easier? Not really. The servicer can still invoke any number of vague claims that thwart the borrower from getting information. I think the extensive list of reasons why a servicer does not have to answer will be used repeatedly. “Not in the normal course of business” can be invoked on every request, delaying an answer on the first try every time. The servicers can and will use any weapon that the CFPB hands them. I am not a lawyer, but I see huge holes in these rules. There’s too much emphasis on making sure the servicers are accomodated, at the expense of the borrower. Calling a servicer does not mean you will get an honest answer. The assumption is the servicer is honest so the rules are proposed this way. Taking away the… more »

…borrowers only legal means to force a servicer to cooperate is not consumer protection. Please think about this before weakening the consumer’s position. I’m sorry I seem so negative, but when you become a victim of a predatory servicer, you start to understand that they will do harm intentionally, as policy, and have no fear of being held accountable. « less
August 26, 2012 11:22 am

Bravo Steve Bravo!!! You spell it it very well. There are servicers whose conduct is reprehensible, nothing short of a lawsuit will bring any form of accountability. The rules and regulations protection consumers are already weak, and the proposed changes weaken the consumers position further in many ways. Servicers are not above lying, they do it every day. I guess the rulemakers can no seem to grasp what is really going on, but your story of being directed to a defunct loan originator is another example of their deceptive practices. None of the rules will fix that though…

August 26, 2012 12:46 pm

To show you what is really happening, please got to:

http://www.consumeraffairs.com/finance/nationstar_mortgage.html

This shows you how rotten this servicer really is. Maybe the moderators can look at this and see where the borrowers are coming from rather than focusing on the “impact” to the servicers. Nationstar is as corrupt as thet come, and these rules do nothing to give the borrowers real power to fight back.

August 26, 2012 5:35 pm

Eureka! I have found the smoking gun! The servicer cites bankruptcy as a reason to cut off contact and not provide online access or statements. However, the bankruptcy code, specifically 11 USC § 524 – EFFECT OF DISCHARGE, in fact does allow periodic payments when “the creditor retains a security interest in the real property that is the principal residence of the debtor”. So allowing periodic payments means allowing periodic statements to the debtor.

11 USC § 524 – EFFECT OF DISCHARGE

(a)A discharge in a case under this title—
(1)voids any judgment at any time obtained, to the extent that such judgment is a determination of the personal liability of the debtor with respect to any debt discharged under section 727, 944, 1141, 1228, or 1328 of this title,… more »

…whether or not discharge of such debt is waived;
(2)operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor, whether or not discharge of such debt is waived; and
(3)operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect or recover from, or offset against, property of the debtor of the kind specified in section 541(a)(2) of this title that is acquired after the commencement of the case, on account of any allowable community claim, except a community claim that is excepted from discharge under section 523, 1228(a)(1), or 1328(a)(1), or that would be so excepted, determined in accordance with the provisions of sections 523(c) and 523(d) of this title, in a case concerning the debtor’s spouse commenced on the date of the filing of the petition in the case concerning the debtor, whether or not discharge of the debt based on such community claim is waived.

(j)Subsection (a)(2) does not operate as an injunction against an act by a creditor that is the holder of a secured claim, if—
(1)such creditor retains a security interest in real property that is the principal residence of the debtor;
(2)such act is in the ordinary course of business between the creditor and the debtor; and
(3)such act is limited to seeking or obtaining periodic payments associated with a valid security interest in lieu of pursuit of in rem relief to enforce the lien.

(j) Subsections (1)(2) and (3) make it clear that the creditor can provide periodic statements as a normal course of business when they hold a security interest in the real property. With this in mind, CFPB should cite in the rules that ALL borrowers with discharged bankruptcies are entitled to periodic statements persuant of this section of the bankruptcy code. Presently my servicer is refusing statements based on my past bankruptcy, but the policy is unfouded as the law does not bar them from providing the statements. This explains why my previous servicer had no problem providing statements and online access after the discharge. I’m sure Nationstar already knows this, but the claim that they are following bankruptcy law is apparently false! « less

August 28, 2012 9:55 pm

Moderator. The servicer stated over the phone that it was their policy to deny online access and not provide statements to anyone with a bankruptcy discharge unless the loan is reaffirmed. I just recieved a response to my direct complaint to the servicer. They state in writing “Please be advised that our records indicate that your account has gone through a bankruptcy that has been discharged. Please know that because of the discharge bankrptcy we will no longer send billing statements unless we receive an affirmation agreement. If you have any questions please contact our bankruptcy department” As you can see they are trying to use the statements as leverage to obtain a reaffirmation. I’d go so far as to call it blackmail. They IMPLY that it is because of bankruptcy laws,… more »

…and that is what they have TOLD others on the complaint blogs. But because I have proven it is not a violation against the bankruptcy code, then this is simply a mean-spirited internal policy the servicer uses to abuse those who have gone through bankruptcy. Here is your opportunity to stand up for the borrower and make the servicer rescind it’s abusive policy. Require Servicers to provide periodic statements to ALL borrowers including loans discharged in bankruptcy. It is not a violation of the Bankruptcy Code, in fact this is clearly addressed as it pertains to creditors and principal residences of the debtors. « less
August 30, 2012 9:29 pm

Thank you! It does make sense to provide statements (and online access!) to discharged borrowers who continue to pay the mortgage. I agree that some may no longer want statements, perhaps because they are walking away. But those who filed bankruptcy in order to save thier homes should be allowed to request and receive statements and online access to properly manage the accout.

August 30, 2012 10:17 pm

Steve you have posted an excellent example of how people continue to get the run around. One of the reasons the servicers/debt collectors seem to not care is because really they are not obligated to the borrower. The servicer has a contract and a fiduciary duty to the INVESTOR. The borrower is an account the servicer manages on the behalf of the INVESTOR. So “customer service” really is a misnomer, they do not view us as customers. They view us as accounts. The servicer does not have a fiduciary duty to the borrower, so they really do not care about anything except the revenue the account (you) provide. The caveat is that the INVESTOR wants the account to keep paying, but the system is designed to bring more revenue to the servicer if the borrower is late or in default. Can you… more »

…say conflict of interest? So getting the servicer to provide information about the INVESTOR is like pulling teeth. The servicers guard this information because they do not want the borrower to tell the INVESTOR what is going on… « less
September 7, 2012 9:10 pm

UPDATE: After submitting a formal complaint through CFPB, the servicer has partially relented. The “apology” was veiled and sarcastic, I’m not surprised. They agreed to allow online access, but still refuse to provide periodic statements “to preserve certain debt collection rights”. The case also is not closed as they continue to “investigate”. I have to ask, why are they spending so much time, effort and resources to withhold information that the previous servicer readily provided? Also the online information is very rudimentary, not detailed enough to show year-to-date details. The statement area is blocked. This means the HAMP incentive accrual and disbursement is not shown and can not be tracked. Are they planning on keeping the HAMP incentives?… more »

…What are they trying to hide? I am partially relieved but this is a glaring example of a servicer who spends time and resources negatively towards the homeowners rather than positively. I want to see the law changed to stop this kind of abuse, and to alleviate the tens of thousands of others still suffering under this unfair servicer policy. I just wish I could switch to a nice servicer instead of dealing with this company. « less
September 22, 2012 12:39 pm

I disagree with the “send it back to the borrower” idea. This does not make sense and does not benefit the borrower. This will only incur late fees to the benefit of the servicers. The borrower should be able to send payments to the old servicer up to 60 days after the transfer date without fear that the payment will not be applied. The borrower should only be concerned with making the payment on time. The old and new servicer are already in a contractual agreement, so tranferring the payment from the old servicer to the new servicer is a simple electronic transaction. It is applied on the same day the old servicer recieves the payment from the borrower. So this talk about sending payments back to the borrower is detrimental to the borrower, this is against the entire purpose of… more »

…the CFPB protecting the borrower. Do not send payments back to the borrower! The old and new servicer shall implement policies and procedures to ensure the payment is posted correctly by either servicer. « less
September 22, 2012 12:54 pm

I agree with peekaboo that servicers large and small provide poor service, and so the size may not be the deciding factor on quality of servicing. But since there is not fiduciary duty between the borrower and the servicer, the quality of service to the borrower is simply “voluntary” at best. The servicers have a duty to the Investor, and do not work for the borrower. So really there should be no exemtions at all, unless a fiduciary duty is imposed there will always be bad behavior and trickey to the detriment of the borrower. Small servicers may (or may not) have a better relationship with the borrowers, but it is not by obligation.

September 15, 2012 11:38 am

Hi hotblazer. Could you clarify which items on the list you are concerned about? Or are you saying that you feel the servicer should have to respond to every request, including requests for information that it doesn’t have? Do you think that requiring the servicer to tell the borrower within five days if it thinks it does not have to respond to a request and to explain why will help prevent a servicer from stalling?

September 13, 2012 9:01 pm

Moderator, I think the list of reasons that the servicer does not have to respond is open for abuse and continual stalling. Most information that consumers ask for or need are just a few keystrokes away for the servicer, but they make it difficult if not impossible for consumers to access that information. I hope the new rules will bring relief to homeowners, but right now the servicers have no real obligations or duties to the homeowners. The entire mortgage servicing system is flawed from the start.

August 16, 2012 11:45 pm

Welcome to Regulation Room, hotblazer. Under CFPB’s proposal, a servicer would have to provide changing information such as transaction activity and payment breakdowns (including fees) upon request. A servicer could provide that information orally, in writing, or electronically. Does this solve some of the problems inherent in using coupon books?

August 17, 2012 8:09 am

Thank you for sharing your experience, hotblazer. CFPB is particularly interested in the interaction between the proposed rules and other laws, like bankruptcy. Right now, the proposed rule applies to all outstanding consumer mortgages, and so the requirement to provide periodic statements should continue unless it’s blocked by some other law. Are you saying that the servicer stopped providing the information because of the automatic stay (or some other part of the bankruptcy code)? Or do you think there is some other reason the servicer stopped providing the information?

August 19, 2012 11:03 pm

Your misrepresentation in your signature line is amazingly bold. Clearly you are not researching you are a real estate industry stooge intent on confusing regulators.

You confuse valuations (recent sales price) with economic value. You equate equate lack of government subsidy a punishment.

In the plan proposed if Californians made more or had less other expenses such as transportation then there would be a greater house price to subsidize. However that is not the case in a bubble economy and a real estate market that confuses recent sals prices with economic value.

August 19, 2012 11:35 pm

Labeling one as a stooge or a dupe is not calling names. It is assessing the level of the comment. You are ignoring the point and throwing out a non-starter as a means to win a debate. It is your arguments that are as berift of substance as the Atacama desert is berift of water. Why is it that you believe all Americans regardless of economic stature and bubble economy position are entitled to the same government subsidies? Answer that with a reasonable degree of clarity and persuasive arguement then you will have others listen to you.

August 20, 2012 1:53 pm

hotblazer, you seem to have some experience that might be valuable for CFPB to know about. If you want, you can share more details about what you have gone through with your servicer. You might also want to check out the post on Asking For, and Getting, Information.

August 21, 2012 4:22 pm

Thanks for your comment, hotblazer. CFPB explains its statement about lawyers submitting QWRs more often than consumers here. However, CFPB wants to change this and make it easier for consumers to get information from the servicer themselves without outside help. Do you think the timeframe rules in Section 1 of this issue above would make it easier for consumers like you to get the information they need from servicers?

August 21, 2012 8:06 pm

Yes I do think the timeframes are more realistic. Easier? Not really. The servicer can still invoke any number of vague claims that thwart the borrower from getting information. I think the extensive list of reasons why a servicer does not have to answer will be used repeatedly. “Not in the normal course of business” can be invoked on every request, delaying an answer on the first try every time. The servicers can and will use any weapon that the CFPB hands them. I am not a lawyer, but I see huge holes in these rules. There’s too much emphasis on making sure the servicers are accomodated, at the expense of the borrower. Calling a servicer does not mean you will get an honest answer. The assumption is the servicer is honest so the rules are proposed this way. Taking away the… more »

…borrowers only legal means to force a servicer to cooperate is not consumer protection. Please think about this before weakening the consumer’s position. I’m sorry I seem so negative, but when you become a victim of a predatory servicer, you start to understand that they will do harm intentionally, as policy, and have no fear of being held accountable. « less
August 26, 2012 12:46 pm

To show you what is really happening, please got to:

http://www.consumeraffairs.com/finance/nationstar_mortgage.html

This shows you how rotten this servicer really is. Maybe the moderators can look at this and see where the borrowers are coming from rather than focusing on the “impact” to the servicers. Nationstar is as corrupt as thet come, and these rules do nothing to give the borrowers real power to fight back.

August 27, 2012 4:58 pm

Thanks hotblazer. Not only do they claim that they have no affiliation with the originator and that they only purchased the servicing rights. After the borrower from frustration gives up and enters into default the servicer just calls themselves a debt collector. Has the CFPB considered these rules in connection to the Fair Debt Collection Practices Act since the servicer is now calling itself a debt collector?

August 27, 2012 8:10 pm

steve smith, you raise an important question – the extent to which the new rules relate to or conflict with other, existing laws like the Fair Debt Collection Practices Act. CFPB is seeking comment on just that question – in particular, on whether servicers will have difficulty meeting the requirements of this rule as well as the Fair Debt Collection Practices Act. Do you anticipate any conflict? Or do you think the Fair Debt Collection Practices Act can provide added protection for borrowers?

August 28, 2012 12:15 pm

hotblazer, perhaps if you could share with us exactly what phrasing your servicer is using, it would shed some light on the issue. Does your servicer say they would be violating the bankruptcy code by sending you periodic statements? That sending statements to borrowers violates their bank’s internal policies? Some mix of the two, or something a bit different?

August 30, 2012 11:51 am

Thanks, hotblazer, for the additional detail. It sounds like the servicer has a policy against sending billing statements to borrowers who have gone through bankruptcy since, strictly speaking, they’re no longer “borrowers” on the loans that have been discharged. In fact, some people may not want to get statements after their mortgage is discharged. But others, like in your case, may want to continue receiving statements in order to continue making payments. So perhaps it makes sense to require servicers to provide statements to discharged borrowers who continue to make payments, but only upon the borrower’s specific request. What do you think? And what do others think about the issue hotblazer has raised?

September 9, 2012 11:50 am

Hi hotblazer, thanks for your comments. CFPB has focused on how difficult it can be for borrowers to get information from some servicers. It wants to help simplify the information request process so that borrowers can get the information they need. They have done this by proposing rules that define the types of information servicers must provide (as well as the types that servicers don’t need to respond to) and placing time limits on when servicers must respond. Should the list of required information be expanded or the list of exceptions narrowed? (CFPB is trying to balance the requirements and the exceptions so that borrowers get the information they need, but servicers are not overwhelmed with information requests.) Are there other things CFPB should consider in order to make the information that borrowers need more easily available?

August 14, 2012 2:08 pm

Do others agree that adding escrow account details would be useful to most borrowers, rather than overwhelming them?

August 12, 2012 4:54 pm

Just like with banking statements, a borrower should have the option to opt in for paperless. If they do, everything can be handled via the web, and email/text notifications can be sent. These notifications should contain the exact same information as the paper statement. They would just be received earlier since there’s no physical mail involved. Again, since everything can be done electronically, there needs to be a way for borrowers to view/update their insurance information electronically through the loan servicer, without having to go to Assurant/QBE’s highly deceptive websites.

If a borrower doesn’t want electronic access, that is their choice. Servicers such as Wells Fargo, Bank of America, & JPMorgan already have websites set up. Adding mortgage/insurance information should not be difficult and should already have been done.

August 12, 2012 8:27 am

The answers to my QWR were quite surprising. The servicer might argue they have too high of costs and burden to reply and that some are “overly broad”. However, the servicer had no problem providing me pages and pages of payoff statement and payment history – they actually send these information several times for some strange reason. However, even after they wrote me that they checked the reinstatement fees and confirmed those as “correct” they cannot itemize even half of them. That would take one or two pages to print out and mail – much easier than the information they were willing to provide. That request was “too broad”. So yes, the servicer can call too broad what ever they want to. I will now write a new QWR asking again for itemization… more »

…of the fees. As a bank they should be able to find out how they themselves came up with that number – especially as they have checked them and confirmed in writing that they were correct. By the way – the confirmation about the fees being correct came in writing and a copy went to the CFPB. I don’t believe I would have gotten an answer at all if I had not complained with the CFPB. And here is a suggestion for the servicer to cut cost: in pre-foreclosure we received a “Home Transition Guide” – magazine style and no doubt expensive to print and send that we really didn’t care for. During the Hamp modification trial we received the same request for our tax returns via Fed Ex over and over again (about 7 or 8 times because they kept loosing our documents). Also, ten days after we reinstated, they send Fed Ex AGAIN with a note that we needed to short sale or give them the deed in lieu of foreclosure. One would think they own Fed Ex as much as they use it. Some servicers are either completely ineffective with internal communication or they really enjoy throwing money at Fed Ex.
Also: the proposed clause “for information it can’t get from its records in the “ordinary course of business” with “reasonable efforts” is downright inviting fraud. They need the original promissory note with endorsements or allonge to assign it when the loan is transferred. When they obtain it, it should not be very hard to make a copy, right? Since the ordinary course of their business has become robo-signing, it makes it even easier to deny the request of a copy of the endorsed note.
As for information “not directly related to the account”: this exclusion would give them right to hide fees from their affiliates. That could make the game of inflated maintenance fees in foreclosure, force placed insurance, unearned kickback fees, attorney fees a whole new chance. If a servicer charges these fees, they should know what they are for and have no problem of disclosing. Last but not least: the servicer already successfully denies to answer QWR that can be interpreted as nothing but harassment. Do I think we need to make it any easier on them? No I don’t.
My conclusion is that the servicers just don’t want to inform the consumers. In the year 2012 they can get all the information tied to a borrowers loan with a few strokes on the keyboard. Nothing too difficult. It is just that some information they DO NOT WANT TO GIVE.

The CFPB’s only role is to protect the consumer. They should not even have to worry about making it easier for or less costly for the servicer or the bank. My servicer chose to spend money on hiring a high profile law firm only to (not) answer my QWR entirely. Well – that is their choice.
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August 11, 2012 12:44 pm

Yes, all loan origination documentation, loan servicing history, customer contact history, etc should be transferred. If I were to transfer from 1 school to another or 1 primary care provider to another, all of my records are transferred along with me. With servicing transfers, this is often not done.

Also the new servicer should be given a specific deadline to have all of the missing customer information boarded into their systems. As this is often done en masse and electronically, it should take no more than 5 days, but let’s say 15 days just to be nice.

Also, the burden of filling in this missing information should be on the loan servicer, NOT the borrower. I don’t see any reason why if my bank decides to sell my portfolio, it’s suddenly my problem to resubmit information… more »

…before being hit with fees. I didn’t ask to be part of a portfolio they sold. That’s all banking issues that I, as a consumer, should have no responsibility in. « less
August 15, 2012 4:02 pm

As an advocate for homeowners in foreclosure, I am on the phone with servicers large and small every day. while foreclosure education is always needed, I think a more pressing issue is regulation of servicers who misrepresent their own investors and who decieve borrowers for their own financial gain. In several of our firms’ cases major servicers have claimed they could not offer a loan modification to our our clients’ because there was an “investor restriction.” This would be valid if it were true, as investors are not required to to consent to a modification. However, oftentimes this is just an excuse the servicers use to keep a client in default and to keep raking in fees that benefit themselves (investor’s usually recieve principle and interest, while servicers… more »

…recieve all the late fees, and other fees associated with servicing an account). There are few cases when there is a legitamite investor restriction. Anytime a servicer cites one, I ask for the name of the investor and the name and series of the trust the mortgage was probably pooled into. Then, if the trust is public I look it up on the SEC website http://www.sec.gov. Then I open the Pooling and servicing agreement section which pertains to modifications. In 95% of cases the agreement petween the investor and the servicer gives the servicer the ability to recapitalize loans, reduce interest and/or reduce princible as they see fit. Oftentime the servicer is already modifying other loans within the portfolio in the same trust. We prove this by pulling up investor reports banks issue to their investors regarding each trust. When confronted with written proof that there is in fact no investor restriction, or that the restriction has been waived servicers will often retract their claim that there is a restriction. But then they often come up with another illegitamate excuse such as a modification denial due to NPV (when it’s actually positive), or that the client needs to have their second mortgage subordinated (in cases where they don’t). The problem is that few ordinary homeowners have the education or resources to push back against servicers. If the investors found out that their servicers were tanking their portfolio by not agreeing to profitable modifications (as opposed to foreclosure) they would be outraged. Some of them do end up suing, from what I’ve heard. So yes, having servicers educate homeowners to their options is a great idea. But even when they are educated they will still lose their homes if the servicers are not not further regulated. Unfortunately many homeowners were decieved by many profit-driven companies at orginination (originator, broker, appraiser, sometimes all together in “one stop shops”), and now they are being decieved on the back end when they need some real assistance to save them from losing their home. If the CFPB wants to do something about this, penalties against deceptive servicers would be a start. « less
August 20, 2012 4:10 pm

In this age of the Internet, I think there should be a rule requiring mortgage servicing companies to provide access to loan information online. I currently have a mortgage from a company who does not offer this. Since I often deal with financial matters at home after normal working hours, I much prefer having online access instead of having to make a phone call to get the information.

August 12, 2012 8:20 am

What many people don’t realize is that ALL customer service representatives (even those for 3rd party vendors such as Assurant & QBE First) have AT LEAST read-only access to all borrower information. In the case of a system like FIS/LPS, if a customer calls in asking for a complete history of their loan, it would take a a customer service rep a maximum of 1 minute (assuming the loan is very old and the rep is very new) for a representative to screenshot the SER_ screen subsets (Services Performed), including SERN (C/S Notes), the HAZ_ screen subsets (Hazard Insurance), ORI_ (Loan Origination), or FOR_(Foreclosure), etc. For example, if you call in asking for Foreclosure information, they can fax/email you a screenshot of the FOR1 and FOR3 screens along with a quick breakdown of what… more »

…information to look for. Your lawyer should be able to call for this same information. Again, EVERY EMPLOYEE has access to this information. It takes 5 keystrokes to switch between screens if you manually type it or just press a function key (F1-F24) if you’re good. There is no reason this information can’t be provided to a borrower within 5 minutes instead of 30-45 business days.

Who owns the mortgage is simple…INV_ is the investor screen subset which shows all historic investors on the loan, and the current investor is listed on every _ _ _ 1 screen (such as SER1, HAZ1, etc). If original copies of loan closing documentation is needed, in a worst case scenario, it takes 5 business days to order from Iron Mountain. In most cases, it takes 1 minute to retrieve from the loan servicer’s loan documentation imaging database. « less

August 25, 2012 6:58 pm

Moderator, the answer is both and they should be one in the same.:-) It is easier to trace a relative that dies a 100 years ago on ancestry.com then it is to trace a $500,00 current note and mortgage. (lack of linked cutting edge computer software is the difference). It is even easie to trace a $1.00 used item sold on Ebay after the sale then a current note and mortgage. I felt like pulling my hair out trying to put together a chain of title with my note and mortgage. If an investigator went into US customs they could pull up, on the computer, any container arriving in the USA, where it came from, where it went and what was in it. Because US customes has current standard technology and an amazing detailed code system that could be adapted for banking. If you want to see the extent of their… more »

…success go to panjiva.com and you will be blown away. Pay the$100.00 and join for one month. You will then be in search of US Customs program writers to solve most of your problems. The banks could use this same system to print a standard monthly report for an individual or company account and maximize transparency for investigators. The same system should accomplish both problems just like US Customs has been doing for a long time . Example, JP Morgan was charging my loan for drive by inspections after my house sold in a short sale. So, I know they were not doing the drive by inspections. The inspector should be able to go into the bank, punch in the drive by inspection code and compare paid out code to billed to customers for drive by inspections with out asking a question and walk out with a report and know to the dollar how bad the problem is in 2 minutes. And ask for proof of payment. It is important to put all the bank problems on a flow chart first and list all problems and possible solutions . Include all the questions that customers and investigators
can’t get an answer for and then meet with the best program writer. To pick one issue, without a comprehensive plan, that solves all computer problems, that need a solution, is a recipe for disaster. The CFPB should have a report on how many times they have been asked the same question. How many of those questions can be addressed in a comprehensive computer program?
Love your web site! You give me hope. :-) « less
August 27, 2012 4:58 pm

Thanks hotblazer. Not only do they claim that they have no affiliation with the originator and that they only purchased the servicing rights. After the borrower from frustration gives up and enters into default the servicer just calls themselves a debt collector. Has the CFPB considered these rules in connection to the Fair Debt Collection Practices Act since the servicer is now calling itself a debt collector?

August 29, 2012 6:45 pm

I am not tech savvy, but coupon books have static information and too little information. I would wish that all lenders were trustworthy; but they all are not. Prior to my requesting a payment history, I made payments religiously, in good faith, believing that the lender was so. Now I think differently because almost $4000 of the payments I made is unaccounted for and I do not know how to hold the institution accountable. They have been giving me the runaround for six months. Would anyone want to risk being in these shoes? Yet, with a coupon book and a trusting consumer, this is possible and probable. And, as I’ve said, being able to call and write to the lender/servicer requesting information is guarantee of nothing. I’ve been doing that since February – have even had intervention… more »

…from a local senator – have filed a complaint and dispute with CFPB , and I am still waiting. At this point, I expect nothing. I just wanted to alert other coupon book users not to be entirely trusting of their servicers. « less
August 30, 2012 11:51 am

Thanks, hotblazer, for the additional detail. It sounds like the servicer has a policy against sending billing statements to borrowers who have gone through bankruptcy since, strictly speaking, they’re no longer “borrowers” on the loans that have been discharged. In fact, some people may not want to get statements after their mortgage is discharged. But others, like in your case, may want to continue receiving statements in order to continue making payments. So perhaps it makes sense to require servicers to provide statements to discharged borrowers who continue to make payments, but only upon the borrower’s specific request. What do you think? And what do others think about the issue hotblazer has raised?

September 7, 2012 10:49 pm

To maintain clear information that will prevent people from being “overwhelmed” with fraud would require the bank to give the home owner a choice of servicers at closing. Just like when you buy a computer you pick your service provider. For a servicer to change 4 times in a year, to create multiple annual forceplaced insurance policies, is abuse! Your servicing should not be traded like a stock because, well it’s stupid, leads to fraud and leads to people being “overwhelmed” for no reason. When you buy a car you decide who is going to send you your monthly bill. The banks have proven they are way too irresponsible to make this decision for homeowners. So I ask, why after 4 years, are banks still allowed to do this?

September 19, 2012 5:18 pm

Why are you leaving it up to the servicer to determine if the information being requested is “unreasonable”? The CFPB is not listening to the “ordinary” people because this is the problem now, not the solution. The banks are probably being asked the same 20 or 30 questions over and over about loans. Please ask Versability for a list of the questions, in relation to a loan, that people ask that are currently not covered on the sample monthly statement that could easlily fit on the statement. Varsability that is emailing you, is trying everything to address transparency issues and has the answers you are looking for. Why don’t we separate reasonable questions from unreasonable questions. Ask Versability, how many of the questions could be answered on the monthly… more »

…statement and eliminate entire categories of crime and eliminate the need to beg for additional information by the borrower. Versability is an insider, bank person that understands banking software and what they are capable of doing. Why is the ultimate goal here, not to reduce as many phone calls as possible, for the borrower to make and the servicer to receive, by providing all monthly activity, in a transparent monthly loan statement, by maximizing the “Transaction Activity” category. (common sense) Everybody is emailing Regulation Room their information problems. It is time to make a list and determine what is “reasonable” information and what is not with specific questions or this is useless. Until we do this we are not even addressing the problem. Should the government tell the Banks, if we are going to give you money to lend, then all activity between banks,servicers and third party vendors in relation to a loan directly and indirectly, has to be transparent to the borrower in “Transaction Activity” monthly? The government needs to say, this has to be a requirement, due to the uncontrollable level of fraud, money laundering, deception and irresponsibility that the ordinary people are being put through unnecessarily. The current system is not working and there are no other alternatives that will solve this problem. Why will our government not step up their game and say, we are not going to allow the banking system any longer, to hide their over priced expenses, behind four interchangeable standard responses that include: “that is proprietary information” or “that is non-recovery” or we are not going to answer your question in relation to expenses, that your account was billed etc… We already know what the servicer is going to determine is “unreasonable” and they will apply the same 4 lousy excuses over and over that I have addressed above, that happened to me. Although it was not the largest monetary crime committed in my account, my following example demonstrates the lack of quality response that is the standard servicer response and manipulation of excuses that the current system allows and the proposed generic changes will let continue. Sadly, this will continue based on the leave it up to the banker to decide if it is an “unreasonable” question, as the solution. Do you think this is unreasonable? I asked who did the drive by inspections of my home, that my account was being billed for, AFTER my home sold. The bank informed me this information was proprietary. I received a check for the over billing with no description on the check. When I asked JPMC why they mailed me a check dated… for the amount of…. and the check cover page even had a bar code and a check a number. Chase responded with: “Chase does not have a record of the letter you are referring to in regards to refund of fees” (Sorry our computer is stupid game). The current system allows banks to be reactive and return only money on an “as busted system” ( HUGE PROBLEM NO SOLUTION) (reactive instead of proactive) When a servicer receives a letter questioning something just refund it. If a borrower is given little information on expenses in their account and you do not get a letter then you keep your ill gotten gains. It really is a simple system based on limited information. With the current system, the servicer just needs to set up a “got caught expense fund” and consider it the cost of committing fraud instead of cost of goods sold. The government is responsible for this current broken system by not requiring transparent monthly statements with strict guidelines on the use of “Transaction Activity”. Versatility as a insider and me having uncovered fraud in almost every categories of my loan payoff statement will both tell you this current disclosure plan does nothing to address the worst problems. (Problem:Banking fraud and secretive activity involving your loan account that increase your payoff and over states your expenses. Solution: eliminate the secrets with 30 day all inclusive, loan activity statements and there are no questions or secrets allowed). The problems are massive and the solutions are so simple. So Servicers don’t have to provide “confidential” (AKA that is proprietary) or “general corporate” (this is soooo generic and generally covers anything servicer related and my “that is non-recovery” would even fit here it is so generic and useless) and if the request for information can not be rejected with one of these generic categories jump to “for information it does not have” (AKA Sorry our computer is stupid game) I could go down this whole list but I think the point is made that this solution is not helpful and is actually counter productive by legitimizing the response that I received above.
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