Tuesday, May 12, 2020

Mortgage servicing industry under strain; chaos may ensue

https://taibbi.substack.com/p/the-bailout-miscalculation-that-could

 

One of the innovations from Wall Street is that the holder of a mortgage doesn’t collect the payments. The firms that do collect the payments cheat borrowers and are poorly regulated. A CARES Act provision granting 180 days forbearance for many million of borrowers threatens to break these firms. That will hurt borrowers unless it is carefully managed.

 

Charlie Cooper

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