A former employee of Chase’s mortgage servicing company says his job entailed “making borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose.”The former employee, who is identified only as “Jared,” explained his job to Mandelman Matters, which writes:
Jared recalled what his boss had told him during his first week on the job: “We’re in the foreclosure business, not the modification business.”
“Foreclosures are a no lose proposition for servicers… The servicer gets paid more to service a delinquent loan, and they get to tack on extra charges. If the borrower reinstates, which is rare, then the borrower pays the extra fees. If the borrower loses the house, then the investor pays them. Either way, the servicer gets their money.”
“Their whole focus is to foreclose, not to modify. They make borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose. That’s what it seemed like to me, anyway.”
An army official’s father had an experience with the bank that backs up Jared’s claim.
He recently described what the Chase mortgage modification process was like for him, telling Huffington Post:
When he first asked for help in 2008, he had not missed any payments. At the time, his mortgage was being handled by Washington Mutual, a subprime lending specialist Chase purchased in the fall of 2008. Collette said WaMu told him he would only qualify for a loan modification if he missed two of his $1,100 monthly mortgage payments. So he missed the payments. And the bank began trying to foreclose on him.
Jamie Dimon’s unfortunate quote from a few months ago echoes this shocking strategy: “Giving debt relief to people that really need it… that’s what foreclosure is.“
These alleged practices, of course, are a large reason for Foreclosure-gate.
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