Mortgage servicers play critical role in how U.S. foreclosures affect communities

by Ryan Smith03 Aug 2015
Mortgage servicers can play a critical role in whether communities experience the negative effects of foreclosure sales, according to a new study.

The study, conducted by Abt Associates senior analyst Hannah Thomas, found that the sales practices favored by mortgage servicers generally favor investor-buyers. Those buyers are generally in better shape to absord the risk of a foreclosure sale.
However, the study found that those practices could lead to higher property vacancy rates. Higher vacancy rates lead to declining property value, which in turn can lead to increases in criminal activity.

“Preserving community assets is a critical component in maintaining and improving neighborhood quality of life,” Thomas said. “There are a few simple steps we can take to ensure that our housing credit and foreclosure systems work toward building neighborhoods up rather than tearing them apart.”

According to the study, because the majority of home loans are serviced by just a few large companies, those companies tend to have a “one-size-fits-all” strategy when dealing with delinquent homeowners. As a result, foreclosed properties sell lower and have a higher vacancy risk.

Thomas made two policy recommendations to address the issue:
  • Working with homeowners to help them find mortgages they can afford and allowing them to re-purchase their foreclosed homes at current market value
  • Creating a real estate network that would connect underwater homeowenrs to buyers who are ready to close
Taking those steps, she said, could help prevent delinquent homes from becoming lender-owned.


  • by Jenkins | 8/3/2015 5:13:33 PM

    Despite the fact that the nation’s courtrooms remain active crime scenes, with backdated, forged and fabricated documents still sloshing around them, state and federal regulators have not filed new charges of misconduct against Bank of America, Deutsche Bank, U.S. Bank, Green Tree, or any other mortgage industry participant, since the round of national settlements over foreclosure fraud ineffectively closed the issue.
    The BANKSTERS continue to commit fraud upon hardworking people and fraud upon the courts. The biggest Ponzi scheme the world has ever seen , where the Banksters created credit out of thin air, not for their borrowers, but for the banksters themselves via the Federal Reserve’s magic check book, with no bank account behind it. The Bankster then mortgageed that imaginary money to people on the security of overvalued real property with the deliberate aim of reducing the artificially raised property prices and putting people out of work.People without income cannot pay their bills, so they were guaranteed they could steal all that real property from their rightful owners. Of course you would say to yourself, that makes no sense because the Banksters would lose money when foreclosing on the security , but you’d be wrong because the banksters insured the debt with an insurance company, but just forgot to tell the borrowers that. SO they knew they could not lose. Its what you might call having your cake and eating it too. You see, just secretly insuring the debt was the way they ensured that they lost no money. First they sold investors in Wall Street on the idea of using pensions and other fund moneys to invest in the profitable housing market. Then they sold homeowners on the idea of borrowing money against their rising property values, secure in knowing that they had artificially raised those prices and knew they could reverse that trend rapidly, when the time was right. Then they found another group of investors and sold them on insuring against the unlikely risk of those secure mortgages defaulting. But, as you know, they had already insured the downside risk. So they devised a new name that no one understood called the credit default swap. These were not insurance policies regulated by the states, but were unregulated securities sold on wall street to investors. So, once they got the business of insurance outside of the regulatory realm, it was no holds barred and they sold the same investment to up to 20 different groups in respect of every mortgage pool they pretended to create in the securitized mortgage scam.But people need to lose the mindset of someone who has been brainwashed by the garbage put out by government at state and federal level and echoed in the corporate owned media.
    SO therefore, The banksters along side Freddie and Fannie, were and still are continuing to submit fraudulent documents to the courts in order to steal homes from homeowners. They and their substitute trustee lawyers (ie Samuel I White PC, just one of many ) are submitting FRAUDULENT papers to the courts in order to FRAUDULENTLY foreclose on homeowners across the nation. Mortgage notes with Forged Owners signatures and ta-da endorsements are being submitted to the courts in order to steal homes. Bank of america(or as they like to refer to themselves…fka countrywide) made a deal with the attorney generals to modify mortgages that they really had no right to modify as they were illegally acquired to begin with. They committed notary fraud, forgery, added fake endorsements and as their crimes began to come to light…………they made a deal and instead of modifications (which they LED the homeowners to believe what was happening)….they handed the fraudulent documents over to Green Tree, soon to be called DiTech..corporate criminals are notorious for changing their names after lights shine on their crimes…, among others, to foreclose. Meanwhile, homeowners are the ones who are paying the price by having their homes taken because of felonies that are being committed . Fraud upon the courts, racketeering, forgery, wire fraud, notary fraud…pathetic, nauseating, and just all around COMPLETELY disgusting. Wake up America.


Should CFPB have more supervision over credit agencies?