It is critical to understand that servicers are the perps in mortgage abuses. The list of malfeasance is long. This is only partial:
Rampant abuses of the HAMP program
Repeated “dog ate my homework” loss of borrower documents, often resulting in eligible homeowners being denied a mod
Widespread misrepresentation of the program’s terms, including consumers being told to default in order to qualify and failure to inform consumers that those who got trial mods but failed to get a permanent mod would be asked to make up the trial mod discounts plus late fees immediately
Abusive “dual track” strategies, in which borrowers were evaluated for a mod while the foreclosure process continued to move forward. Borrowers were almost universally told to ignore court documents related to their foreclosure when they had full legal force
Widespread forgeries and document fabrication
Wrongful foreclosures
Servicer driven foreclosures (as in the foreclosure did not result from borrower failure to pay but from pyramiding and junk fees)
Force placed insurance
http://www.nakedcapitalism.com/2011/10/quelle-surprise-servicer-consent-orders-producing-expected-whitewash.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29
