Do you think mortgage service companies should be monitored more closely for pre

1. 75

   flacoinohioposted 13 years ago

   Do you think mortgage service companies should be monitored more closely for predatory actions?
   
   My mortgage for my first home has been sold a second time.  The first company that bought it was Saxon Mortgage Services and they just sold our mortgage to RCS (Residential Credit Solutions).  Both companies are located in Ft. Worth Texas and both are debt collection agencies who employ debt collection practices when servicing our mortgage.  And when researching RCS I discovered that RCS is a Federal Loan Modification Company approved by our Government to help people modify their mortgages.  After reading over 150 complaints about deceptive practices I became nervous about this service company

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2. 69

   LandmarkWealthposted 13 years ago

   If you pay your mortgage on time it doesn't matter who holds the note. The purchase or sale of the note is simply an investment decision to buy or sell what they believe is your ability to make your payment. You owe them not the other way around.  As far as predatory actions go, the determination of whether or not a loan is issued is up to the underwriter not the loan officer selling you.  Banks and lenders generally don't like lending money to people who can't pay them back.  If you want to stop predatory practices, you need to get the Gov't out of the business of using Gov't agencies to buy up mortgages.  As long as a lender can transfer the risk to the Gov't, why would they care if the borrower can pay back the loan ???  This is precisely how you get market distortions.
   
   However it would be a good idea to have loan officers pass a basic licensing exam that include some basic ethical or fiduciary oath.  Sometimes creative financing makes sense, and a loan may pass the underwriting process but still not be the best solution. It would be good to have qualifid people there to guide you properly.

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   1. 75

      flacoinohioposted 13 years agoin reply to this

      This is a mortgage sale that I was not privy to until after the fact, our loan is not only current, but we pay extra each month to bring down the principal.  We intentionally bought a home with a payment that costs us only 15.7% of our monthly income

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   2. 69

      LandmarkWealthposted 13 years agoin reply to this

      That's great that your paying down the debt, but again your mortgage may be bought or sold a dozen times.  They don't need your permission because it doesn't impact you.  It's like if the car dealership you bought your car from gets sold. Who cares..

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