Mortgage Modification Overhaul by the States

Phil Ting's picture


Looks like many states are joining forces to overhaul the mortgage modification process.

- banks would not be allowed to foreclose on a homeowner while they are applying for a modificaiton

- any borrower who has made three payments under a trial modification would be given a permanent modification

- denied modifications will be reviewed by ombudsman or review panel

Eric Jaye's picture

Did you see the MERS story on Sunday?

NYTimes all over this story. They did a great job on trying to explain what MERS is on Sunday.

Phil Ting's picture

Who Owns Your Loan?

It used to be when you needed a home loan, you'd go to the bank and apply for a home loan.  Using the home loan, you'd be able to buy your house.  You would spend 30 years paying the bank to pay off the loan.  Today - we have no idea who owns the loan - most loans are resold to investors through a corporation called MMERS - which actually hides the identity of the loan owners.  The public has lost transparency in the real estate process, lenders used this as a way to avoid paying county recording fees and foreclosures were able to be processed faster.

We need to ensure we have more transparency in the lending process so consumers know the investor who actually owns their loan in case they need to negotiate a modification.

Paid for by Phil Ting for Assembly 2012. FPPC ID# 1343137