Arizona Attorney General Urges Broad Adoption of Mortgage Modifications

Posted by Justin McHood on October 14th, 2008

The Arizona Attorney General’s office has joined with 9 other states to urge 16 lenders to work with borrowers on loan modifications.

The latest urge comes on the heels of a report by a Working Group that concluded that industry measures to keep homeowners out of foreclosure had actually slipped since the last report in April, 2008 and that currently a full 80% of delinquent borrowers are not on track for any loss mitigation outcome.

According to the report:

“The mortgage industry’s failure to develop systematic approaches to prevent foreclosures has only spurred declines in property values and further increased expected losses on mortgage loan portfolios.”

“Given the significant losses associated with foreclosures, and your fiduciary duty to
maximize the return for your investors, we believe that every major servicer of subprime loans
should adopt these types of programs as soon as possible. We believe that doing so is in the
interests of homeowners, servicers, investors, and the economy at large. We urge you in the strongest possible terms to adopt a comprehensive, streamlined, and effective loan modification program
as soon as possible.”

This could be very good news for people who are currently being told “no” when trying to work with their current lender.

H/T Catherine Reagor



October 14, 2008 | Filed Under Miscellaneous Fun 

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