HUD Pretends to Care, Asks for Loan Modification License
In an attempt to pretend to care about homeowners, the U.S. Department of Housing and Urban Development is considering implementing Loan Modification guidelines and tests for those that want to offer the service.
“One of the things we saw over and over during the boom was that a bad actor would work at a shop for several months, frequently ending up as the ‘top producer,’ and then leave for presumably greener pastures,” Fulmer said in an e-mail. “In actuality, they usually left because their bad loans were about to start blowing up and, if they stayed, they’d be discovered.”
Loan Modifications
The U.S. Department of Housing and Urban Development, which oversees compliance with the SAFE Act, has proposed that employees handling loan modifications for struggling homeowners also meet the licensing requirements, a policy opposed by banks. Mandating licenses for loan modification specialists would slow hiring and stall efforts to reduce foreclosures, said John Courson, CEO of the Mortgage Bankers Association.
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