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  • February 2011
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  • Mary K. Lenahan, J.D., Realtor

FHFA to Explore Ways to Encourage Banks to Modify Mortgages


According to a Washington Post article,  the Federal Housing Finance Agency (FHFA) is looking at ways to change the way banks manage mortgages and thereby reduce the number of foreclosures.

“Critics say the current system makes it more lucrative for a bank to foreclose” [than to modify the mortgage terms].    Apparently, if a loan is modified, fees to the loan servicer may be reduced.  However, with a default, fees are tacked on that can be collected at the time of foreclosure.

The FHFA warns however, that changes may not occur until Summer 2012.

 

Mary K. Lenahan, JD, Realtor
The Professional Difference
(626) 629.8709
Mary.Lenahan.Dilbeck.com
SEARCH THE MLS HERE
DRE 01867737
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