This is loanswithjorge's Profile page. Use it to view loanswithjorge's comments, other users' replies to these comments, and comments loanswithjorge has endorsed.

What's Happening Now

September 26, 2012 10:52 am

In response to the EXCLUSIONS mentioned in (§ 1024.33(b)(2)) and the process of UPDATING BORROWERS, I recommend it to be updated as so… In any event, where the servicing of a mortgage is transferred, sold, assigned, and/or other from the original mortgagee that will change ANY information pertaining to the payments of a consumer loan, the servicer must provide the “Updating Borrower” letter regardless of how the servicing is contracted. It shall be the responsibility of the mortgagee that DECIDES TO SELL THE SERVICING RIGHTS, to create a documented trail of the transaction that is visible to consumers and provide ANY/ALL methods available to the consumer that ensures all payments are directed to the appropriate department, company, contractor, affiliate and/or other that… more »

…will provide services on the behalf of the original mortgagee. (My point is simple, lenders DECIDE to sell the service, to who or why is irrelevant, what is important is that they must retain some form of record that creates a paper trail that can be followed by any competent individual, especially the mortgagor. If you own a business, wouldnt you want to make sure your client is sending the payments to the right place to make sure YOUR getting paid?) « less
September 26, 2012 11:57 am

“Periodic Statements”… unless you want to get paid “Peridocially” you should send consumers (your clients) “MONTHLY STATEMENTS”…therefore collecting your payment every time you send a statement. We are talking about MORTGAGES, if not the largest, surely one of the largest investments consumers will make and we see how connected it is to our global economy, as soon as the little guy is NOT making payments, the world practically collapses. It is vital, to not only mortgages, but to any business…you should always maintain a connection with your clients to ensure your relationship is one of good standing that will continue for many years to come.

As to the ITEMIZATION, I find it surprising that NOT all servicers provide this detail of consumers… more »

…accounts. If the servicer does not know about the itemization and current standing of the consumers account, well then they need to apply some sort of system that allows them to maintain these records…asking the consumer to pay for it, is just ridiculous.

This is similar as to asking a local community, to pay for the construction, permits, taxes, infastructure and other costs to open a McDonalds on the corner. Yes, I might like thier burgers, Yes it might be convenient right down the street, but how is it my responsibility to cover the costs of being able to get my business?

When the government required fast foods to contain a nutrition label, I didnt get a call from McDonalds saying, since you eat here, we need to charge you X so that I can continue to accept your business.

The burden of being compliant is always on the one providing the services/products in exchange for profits. « less

September 26, 2012 12:18 pm

In response to Info…it should be the standard practice to all businesses…the better informed your client is (whatever… payments, fees, penalties, etc), the better your relationship or the better chances of you (a business) getting paid.

As described in the FRAUD ACT 2006…

Fraud by failing to disclose information.

A person is in breach of this section if he—
(a)dishonestly fails to disclose to another person information which he is under a legal duty to disclose, and .
(b)intends, by failing to disclose the information— .
(i)to make a gain for himself or another, or .
(ii)to cause loss to another or to expose another to a risk of loss.

Simply said, it is considered FRAUD to not provide “INFO”. If your collecting payments for the next… more »

…30 years (or whatever term), info associated with the account it is surely part of the business obligation.

To close, if at any point, your client (mortgagor) is at risk of NOT making payments, it surely becomes your DUTY to protect the contract by offering solutions…or in this case “Info”. « less

September 26, 2012 1:04 pm

WHEN…is surely tough when crediting an account when payments are inconsistant and completely understand the complexity of the matter when providing up to date information to the client in a timely manner (before the next payment).

As I feel there is NO one answer that conforms to ALL needs…I feel what is important is creating an incentive that encourages MOST people to act, ultimatelty streamlining most of whatever process.

In the past, consumers where offered discounts on the mtg interest (.25%) if you signed up for electronic payments. Though this may/may not be an option now, the idea is to add options, not take away…as they say in the service business, different strokes for different folks. And that should be up to company and/or its affiliates. Surely a tough situation… more »

…for both ends.

HOW…like mentioned by “versability, August 12, 2012 4:54 pm” the OPTION to be paperless is up to the client (mortgagor not the mortgagee).

I would add though, it is to often that computers become UNRELIABLE therefore making paperless accounting very risky. I know that saving trees is extremely important, but buyer beware with anything electronic. In todays age, an area that works along side with an electronic system is identity theft and viruses.

It is just as improtant, should you decide to go paperless, make sure you print a RECEIPT…because the burden of proof is on the consumer, not the organization! « less

September 26, 2012 1:56 pm

As mentioned, Coupon Books should be for borrowers who request them “AND” should be a solution for when other payment options are exhausted or unavailable.

It is important to address the needs of ALL clients with ALL options. Though a coupon book is an old method, “it works” for those individuals.

If a coupon book is provided, quarterly statements could be implemented to compensate for monthly statements…quarterly reports are done by almost every company and is a great time to execute.

To close…I am positive this data (mortgage balance, escrows, payments, etc) is already “electronic” within the company. This electronic option is NOT an option or solution, it is how data is maintained and should/will always be an available method to all… more »

…accounts regardless of secondary options…we all know that it is the fastest and the cheapest.

The rules should not be made to favor one option over another, electronic data must ALWAYS be available to account holders regardless of how they make thier payments. « less

September 26, 2012 2:25 pm

Exceptions are simply loop holes for the opportunity to take advantage of the unsuspecting/uneducated…this is absolutly out in left field.

As mentioned in comments below…in short, equality is vital…big or small…mom and pop vs chains…the rules need to be the same.

In response to another comment…the minute you feel your company is overwhelmed, CREATE A JOB (there are plenty of people that need jobs)…it would be a great time and opportunity to grow your business and take your business to the next level…get out of your comfort zone. You might sit and say, “this is alot for little old me with only 1000 files”, but rest assured that the company with hundreds of thousands of files is saying, “holy cow, this is going to cost me… more »

…millions”…you are just at a different level.

Equally the same for everyone, big or small. « less

September 26, 2012 2:34 pm

Because of your lack of education on the ACTS that now govern and control how YOU/YOUR ORGANIZATION works with consumers, let it be a “DEMO” of what happens with you make exceptions.

Based on the SAFE ACT…I will say, maybe a long shot…but, you are NOT a LICENSED MLO, maybe just registered…and if an executive of the bank, you did not even submit a background check or credit report.

What makes you so worthy to comment?

September 26, 2012 3:31 pm

It is amazing that this is even a topic/option, of course it should be, or should HAVE been in place.

Where I get lost with this as the mortgagee. As a mortgagee…

MORTGAGEE: I really do NOT care about your house, I want my money. Your home is yours, your families nest. As the mortgagee that extended you the money to purchase your families home, I simply want to make ANY/ALL arrangements possible to collect the money you agreed to for the home you decided was best for you and your family. We are not in the house business, we are in the money business…unfortunatley the money is tied to your home.

The bank DOES NOT want your house…I promise they dont, they want money. Not having a dept/case mgr within a company that will help the company aquire the original reason behind… more »

…the transaction, is just flagrant.

In a case of asset-based lending, I could see the bank giving the run around, he will make more profit reselling the property…which surely this is the basis behind HOEPA, now prohibiting asset-based lending practices…but does not make sense to properties that are upside down and a borrower trying to make good.

For sure, “Continuity of Contact” (DEPT or CASE MGR)…one guy/gal, one number that can play the role of intermediary reducing the “lost in translation” effect between borrower and company…create more jobs!!! « less

September 26, 2012 3:51 pm

Again, amazing…how can one guy looking at a different screen have different data…thats impossible!

As a fairly tech savy person and experinced programmer, though my screen may be designed differently, with different buttons or colors, it DOES NOT affect data. The DATA is consistent regardless of computer or screen or access…it just might be aranged differently, or maybe certain information is not showing because you might not have clearance.

Fine, okay…but one guy has 8 payments on your account and the other guy has 36 payments on your account, this is just unimaginable!

How can you have different data on the same mortgage? This is just unrealistic to the purpose of maintaining data.

Simple solution, if you have a DATABASE and are considering a servicer/subservicer/whatever…create… more »

…a restricted and secure access point to only specific information for this contractor so that the information is consistant on your screen aswell as on the contractors screen (you see this now with almost everything, credit card companies, power companies, almost anyone that has adopted “payonline” options, has these access points for account holders)…again, I cant believe this is even a problem!

Surely push “Good information management” through, its a no brainer. « less

September 26, 2012 4:20 pm

LOL…again, your kidding…since VOIP systems were implemented, calling across the globe costs nothing!

Why are we loosing CONTACT with each other? This is like walking into an emergency room, your practically dying (or believe you are at least) and your greeted by some computer saying…


Come on, lets rebuild communication…talking to each other.

Okay, argument…”when I call, they never pick up”.

Well, in addition to VOIP (which we all know VOIP; Vonage, Magic Jack, etc.)there are auto dialers (same one collection companies use, even our government uses it for elections).

I am positive everyone has received at… more »

…least 1 automated call in the past.

Add the number to the system and it will call everyday, 10 times a day if you want…until you make a connection.

To the point…phone calls cost as much as sending an email and if your the mortgagee, you surely have the invested interest in creating a dialog with a distressed client.

Anytime a client had a problem, they always had NUMEROUS methods of speaking to me and when I see issues with thier accounts, forget email, letter, whatever…I WANT TO RESOLVE THIS NOW, AND AS A BUSINESS, I SIMPLY CALLED!

8 out of 10, I was able to find the underlying issue the client is having; was able to express my motivation to help them resolve the issue; was able to rebuild the confidence and relationship with that client. « less

September 28, 2012 10:07 am

Though it may be a good point, that would only/should apply if they are BUYING IT…what is happening is that service companies do just that…only service and do NOT really have invested interest outside of the fees they would collect.

Again, as long as the borrower pays…everything is smooth. It is NOT until the borrower doesnt pay is when we see inconsistencies with these loans and how the data is handled.

September 28, 2012 10:20 am

I am going to have to disagree with mpick76.

Banks use depositers money to lend. In addition, files that qualify for sale on the secondary markets are sold in order to create liquidity…therefore, now they have the cash to lend again.

Banks charge FEES (like lenders) to create the loan, plus collect a premium on the sale of the loan due to the projected value over the next 30 years of payment.

ALL banks/lenders need to be held to the same REGS regardless of size, and if you have anyone handeling loans, they should conform to the SAFE act which right now, BANKS (S&L’s) are not, because thier LOAN OFFICERS are NOT required to TESTED. It is impossible for anyone to know the LAW unless your obligated to comply.

I can only say one name…Washington Mutual. They were one of the largest contributors to this nightmare, and they were a BANK (S&L).

September 26, 2012 2:30 pm

Welcome to Regulation Room, loanswithjorge, and thank you for your thoughtful comments. Having servicers call borrowers who make payments to an old servicer is an interesting idea. Can anyone in the industry tell us whether this is a common practice currently? Are there any costs associated with this that might be passed on to consumers? What do other users think?

September 26, 2012 2:49 pm

loanswithjorge, The purpose of Regulation Room is to provide an environment in which people can learn about important proposed government regulations and discuss them in ways that help the agency make a better final decisions. Everyone who comments on the site is expected to remain civil and respectful. Please see the Terms & Conditions you agreed to when you registered.

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.