Loan servicers work the fine print in Obama foreclosure plan

(Creative commons photo by redpres via Flickr)

(Creative commons photo by redpres via Flickr)

WASHINGTON — Even as the Obama administration presses the lending industry to get more mortgage loans modified, the practice of forcing borrowers to sign away their legal rights in order to get their loans reworked is a tactic that some servicers just won’t give up on.

Waivers requiring borrowers to give up any legal claims related to their mortgages, even in cases where they might be victims of predatory lending, are showing up sporadically in loan modification agreements under the Obama administration’s Making Home Affordable plan, consumer attorneys say. They were stunned to find the legal waivers still being used, despite more than a year of efforts – including calls from lawmakers – to get rid of them.

Read more at The Colorado Independent’s sister site in the nation’s capital, The Washington Independent.

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Mary Kane

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