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November 06, 2007
NY Times: dubious foreclosure fees, weakening of Frank reform bill
Over at the New York Times today, Gretchen Morgenson reports that Borrowers Face Dubious Charges in Foreclosures. The story includes data from research of Iowa law professor Katie Porter (who blogs over at Credit Slips). According to the Times: In one example, Ms. Porter found that a lender had filed a claim stating that the borrower owed more than $1 million. But after the loan history was scrutinized, the balance turned out to be $60,000. And a judge in Louisiana is considering an award for sanctions against Wells Fargo in a case in which the bank assessed improper fees and charges that added more than $24,000 to a borrower's loan. Meanwhile, the Times editorial page weighs in with Watered-Down Mortgage Reform on last-minute PIRG-opposed changes made just before the House Financial Services Committee is to vote on mortgage reform legislation backed by Chairman Barney Frank (D-MA): Mr. Frank's proposed change would not improve borrowers' ability to pursue legal remedies against Wall Street under federal law. In addition, it would prevent borrowers from seeking redress on the state level, which sometimes offers stronger protection than federal law. Specifically, state law would be pre-empted with regard to too common predatory practices.
Posted by Ed Mierzwinski at November 6, 2007 06:24 AM
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