This mortgage mess will certainly be with us for many more years. Not only do we have to contend with banks that still don’t want to lend, but there are many banks that are cleaning up the mess in questionable ways. It seems that there are a lot of dishonest folks in the mortgage game and when you give them an incentive that is directly tied to their pay they tend to find a way to fudge something for their own gain. I think that the whole idea that, in the end, someone else pays (taxpayers via Fannie and Freddie), makes it feel like a “I won’t have to deal with it when it goes bad”.
Good old accountability needs to come back into the game. If a bad mortgage is written, someone gets in trouble or loses their job.
The cover it up, dress it up, and get rid of it mentality has to stop.
Two big mortgage lenders are reviewing foreclosures as public officials heighten pressure on the industry over allegations that they made errors in documents used to evict homeowners. GMAC Mortgage, a unit of Ally Financial Inc., said Tuesday that it has enlisted legal and accounting firms to conduct independent reviews of its foreclosure procedures in all 50 states.
GMAC has already halted foreclosures in 23 states.Separately, Wells Fargo & Co. said it would review pending foreclosures for potential defects in response to requests from lawmakers and public officials. The San Francisco-based company says it has not turned up any evidence of problems.