Losing a home to foreclosure can be a heart-wrenching and economically crippling experience for a family. But when a family loses their home just because the bank or mortgage lender dragged their feet on a modification or even engaged in fraudulent behavior, not only is it financially and emotionally devastating, it is downright unconscionable and we must act to stop it.
For some time, my colleagues and I have received complaints from constituents detailing some very awful experiences dealing with their mortgage lenders. In recent weeks and months, ample information has emerged in the news media and elsewhere that despite good faith efforts by homeowners seeking loan modifications or fighting foreclosure, mortgage servicers have routinely failed to respond in a timely manner, misplaced requested documents, and, in some instances, engaged in fraudulent practices.
It is simply unimaginable that in the wake of these revelations, and in the midst of a continuing housing crisis that banks and the mortgage servicing industry are engaging in misconduct that could cost millions of families across America their homes in addition to exacerbating the crisis faced by states from declining property tax revenue.