“They are without a doubt the worst organization I have ever dealt with. Keep suing them America! They deserve it!!” is the way one Bank of America client described the bank and the current actions that many of the mortgage banking business are undertaking will not improve the situation.
As Reuters reports, many of the 20 million homeowners in America are being held hostage on their mortgage modification process by an extra clause being added to the docs: they could not say or print or post anything negative about the provider, ever. These “gag orders” are becoming more frequent and Consumer law defenders are concerned, “”If your servicer screws up, you can’t say anything about it… the homeowner has no defense.”
The non-disparagement clauses are meant to protect banks from public insults from borrowers but the CFPB said the practice was “unfair,” and has already required two servicers to cease the practice…Â “The banks are attempting to hold our clients hostage with a provision they know we cannot agree to… it is coercive and unethical.”
Mortgage modifications continue…
During the past few years, loan servicers have been renegotiating mortgage terms with borrowers who have fallen behind on their payments. Since the housing crash, there have been about 1.3 million loan modifications done under the government’s Home Affordable Modification Program, according to the U.S. Department of Treasury.  Servicers have done an additional 5.6 million modifications in-house.
Companies like Ocwen say that modifying mortgages is cheaper than foreclosing. Servicers modify mortgages through some combination of changing monthly payments or interest rates, lengthening the terms of loans, and changing the principal owed, either by forgiving some of the loan or by adding on penalties and fees to make it bigger.
But, Reuters reportsservicers and providers have added a little extra…
