When mortgage modifications were first introduced, their sole purpose was to benefit the borrower. The borrower was to get information from the bank, and be able to learn more about what is going on in the market, and what they can do to get some relief for their payments. So, was the bank a beacon to those who needed it?
In the process of putting the modification program into practice, the program had some glaring issues. Was it being monitored properly? This program was thrown out the door before it was ever refined, in an attempt to get something together to try and solve bigger problems in the economy. Overall, just throwing something together doesn’t work very well, and in the long run more risks come about for mistakes.
The worst problem that borrowers faced was when they called their mortgage servicer, and the servicers were telling them that they couldn’t help them. The whole point of modification was to take the borrowers through the process of doing a home loan, so that they could lower their payment which in turn would make their overall obligations easier to manage. The Treasury Department told ProPublica that they have no control over what happens with servicers, thus not allowing them to hold anyone responsible. The Treasure not only drafted all the documents related to this issue, but they signed them. So, how is it that they now can tell borrowers that they can’t get help?
If there was anything that needed regulation, it is modification. Modifications overall were designed to help people not hurt them. Read up on modifications and how they were handled, and you decide!
-Mayer Dallal
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