Industry Insiders Speak Out About Mortgage Modifications

Yesterday, Yves at Naked Capitalism shared this revealing clip from The Dylan Ratigan Show in which a former employee at Litton and and a former consultant to Fannie Mae share their perceptions of the modification “efforts” to date. 

Unsurprisingly, the former mortgage servicer indicates that many borrowers who should have been eligible for modifications were denied simply because it was more profitable to foreclose on those loans than to create a workable modification. While he left his position voluntarily because he “couldn’t stomach” what was going on in the industry, the Fannie Mae consultant says she was fired for repeatedly expressing concerns that rushing homeowners into trial modifications was harming them in the long term.