Lenders Have Until Mid-June to Improve Modification and Foreclosure Practices

Federal government regulators have given financial institutions until mid-June to file acceptable plans for improving their loan modification and foreclosure practices. Fannie Mae and Freddie Mac recently released their modified guidelines which were designed to increased successful modifications while ensuring that foreclosures do not drag on.

Fannie and Freddie focused on the following key areas of improvement, and other institutions are expected to follow suit.

1)      Borrowers must be assigned a "single point of contact" to speak with regarding their loan modification or foreclosure. This will prevent borrowers from being bounced around from one bank employee to the next when seeking an update or answers to their questions.

2)      The lenders must set "appropriate deadlines" for reaching a decision on all loan modifications. Many borrowers have submitted paperwork to get a modification only to have to resubmit several time sensitive documents when deadlines pass.

3)      The financial institutions are being required to add employees to ensure "appropriate staffing levels" to deal with the increase in modifications and foreclosures. This should improve customer service at the lenders while speeding up the modification and foreclosure processes.

At The Dunn Law Group we assist underwater borrowers in Boston and around Massachusetts obtain loan modifications from the nation's largest mortgage servicers. Call or email us today to discuss how we might help you.  (617)725-0033 or mdunn@dunn-lawgroup.com