For many homeowners the threat of foreclosure is an all too real reality. While the national mortgage abuse settlement has brought some return of relief for citizens, recent reports suggest that the problems in lending and the foreclosure process are far from over.
Part of the $25 billion settlement aimed at ending the foreclosure crisis was allocated to paying victims of the lending abuse. Although many of the nation’s top lending institutions are included in the settlement, a new study finds that not all are following directives. More specifically, two of the five key players in the foreclosure fight have been found to mismanaging funds and failure to comply with new lending regulations.
WellsFargo, Bank of America, Citigroup, Ally Financial/GMAC, and JPMorgan Chase & Co have all been under strict watch since the early part of last year. In efforts to better assist homeowners facing foreclosure, lenders are now required to make better faith efforts to resolving mortgage debt troubles that could keep families out of bankruptcy or the threat of losing their home. However, several investigations are revealing that further regulations may be needed if the housing market is to see a return to stability any time soon.