Consumer Law

The Washington Post Reports That The Government Had Been Warned That The Mortgage Foreclosure Industry Was A Mess

By Brian Wolfman

 We've learned in recent weeks that consumer mortgages have been foreclosed using illegal procedures and improper paper work. And now the Washington Post reports that the "Government had been warned for months about troubles in [the] mortgage servicer industry." "Consumer advocates and lawyers warned federal officials in recent years that the U.S. foreclosure system was designed to seize people's homes as fast as possible, often without regard to the rights of homeowners." As Ira Rheingold, head of the National Association of Consumer Advocates, put it:

Have we talked to [Obama Administration officials] about servicer incompetence? Repeatedly. Have we talked to them how the servicer system is broken? Yes. ... Have we talked to them about the costly stream of errors made by servicers? Yes.

Full post as published by CL&P Blog on October 10, 2010 (boomark / email).