Mortgage companies making $ by not modifying loans

[dbapig]

http://www.nytimes.com/2009/07/30/business/30services.html?_r=2&pagewanted=all

—————
excerpt:
But industry insiders and legal experts say the limited capacity of mortgage companies is not the primary factor impeding the government’s $75 billion program to prevent foreclosures. Instead, it is that many mortgage companies are reluctant to give strapped homeowners a break because THE COMPANIES COLLECT LUCRATIVE FEES ON DELINQUENT LOANS.

Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. So the longer borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services.
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Gotta give it to the ‘traitors’ occupying the corner offices for their greed and ingenuity.

[Coronita]

This entire loan mod thing was a crazy idea to begin with imho.

So the way I look at it…If what you say is true, these banks would be making money off of the fees normally anyway if these mods don’t exist.

Banks shouldn’t be giving breaks to homeowners ANYWAY….Good for the banks imho.

That’s *if* were to believe what the article says verbatim…Somehow though, I don’t think when a bank loses money on say $1million mortgage for which the property is now worh say $800k, would all the fees,apprisals,etc make up for the difference….

Just another article to color the landscape for the poor home buyer “victims” imho.

[Coronita]

This entire loan mod thing was a crazy idea to begin with imho.

So the way I look at it…If what you say is true, these banks would be making money off of the fees normally anyway if these mods don’t exist.

Banks shouldn’t be giving breaks to homeowners ANYWAY….Good for the banks imho.

That’s *if* were to believe what the article says verbatim…Somehow though, I don’t think when a bank loses money on say $1million mortgage for which the property is now worh say $800k, would all the fees,apprisals,etc make up for the difference….

Just another article to color the landscape for the poor home buyer “victims” imho.

[Coronita]

This entire loan mod thing was a crazy idea to begin with imho.

So the way I look at it…If what you say is true, these banks would be making money off of the fees normally anyway if these mods don’t exist.

Banks shouldn’t be giving breaks to homeowners ANYWAY….Good for the banks imho.

That’s *if* were to believe what the article says verbatim…Somehow though, I don’t think when a bank loses money on say $1million mortgage for which the property is now worh say $800k, would all the fees,apprisals,etc make up for the difference….

Just another article to color the landscape for the poor home buyer “victims” imho.

[Coronita]

This entire loan mod thing was a crazy idea to begin with imho.

So the way I look at it…If what you say is true, these banks would be making money off of the fees normally anyway if these mods don’t exist.

Banks shouldn’t be giving breaks to homeowners ANYWAY….Good for the banks imho.

That’s *if* were to believe what the article says verbatim…Somehow though, I don’t think when a bank loses money on say $1million mortgage for which the property is now worh say $800k, would all the fees,apprisals,etc make up for the difference….

Just another article to color the landscape for the poor home buyer “victims” imho.

[Coronita]

This entire loan mod thing was a crazy idea to begin with imho.

So the way I look at it…If what you say is true, these banks would be making money off of the fees normally anyway if these mods don’t exist.

Banks shouldn’t be giving breaks to homeowners ANYWAY….Good for the banks imho.

That’s *if* were to believe what the article says verbatim…Somehow though, I don’t think when a bank loses money on say $1million mortgage for which the property is now worh say $800k, would all the fees,apprisals,etc make up for the difference….

Just another article to color the landscape for the poor home buyer “victims” imho.

[moneymaker]

2 Words that should instill fear for home lenders are “non-recourse” and “bankruptcy”. Somehow I don’t think the fees add up to a hill of beans compared to these 2 behemoths. OT- Why would the government expect the TARP money to be paid back now, when lenders are generally in it for the long haul, and why would a lender pay 10% on a government loan while at the same time give me a <5% loan. A lot of short sited people out there.

[moneymaker]

2 Words that should instill fear for home lenders are “non-recourse” and “bankruptcy”. Somehow I don’t think the fees add up to a hill of beans compared to these 2 behemoths. OT- Why would the government expect the TARP money to be paid back now, when lenders are generally in it for the long haul, and why would a lender pay 10% on a government loan while at the same time give me a <5% loan. A lot of short sited people out there.

[moneymaker]

2 Words that should instill fear for home lenders are “non-recourse” and “bankruptcy”. Somehow I don’t think the fees add up to a hill of beans compared to these 2 behemoths. OT- Why would the government expect the TARP money to be paid back now, when lenders are generally in it for the long haul, and why would a lender pay 10% on a government loan while at the same time give me a <5% loan. A lot of short sited people out there.

[moneymaker]

2 Words that should instill fear for home lenders are “non-recourse” and “bankruptcy”. Somehow I don’t think the fees add up to a hill of beans compared to these 2 behemoths. OT- Why would the government expect the TARP money to be paid back now, when lenders are generally in it for the long haul, and why would a lender pay 10% on a government loan while at the same time give me a <5% loan. A lot of short sited people out there.

[moneymaker]

2 Words that should instill fear for home lenders are “non-recourse” and “bankruptcy”. Somehow I don’t think the fees add up to a hill of beans compared to these 2 behemoths. OT- Why would the government expect the TARP money to be paid back now, when lenders are generally in it for the long haul, and why would a lender pay 10% on a government loan while at the same time give me a <5% loan. A lot of short sited people out there.

[jpinpb]

It was also in the Useless Tribune

[jpinpb]

It was also in the Useless Tribune

[jpinpb]

It was also in the Useless Tribune

[jpinpb]

It was also in the Useless Tribune

[Author]

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