Consumer Group Upset by Fairbanks

Consumer advocates here who have been working with Fairbanks Capital Corp. claim that the mortgage servicer has gone back on an agreement it made with them.

The National People's Action, a nationwide coalition of community organizations, has been working with Fairbanks to address problems that its members are having with loans that Fairbanks services. Primarily, borrowers have complained about the company's overly aggressive foreclosure policies. In an August meeting in Cleveland, Fairbanks' senior vice president, Maggie Matthes, met with the East Side Organizing Project, a member organization of NPA.

She agreed to enter into a written agreement with ESOP and NPA, with the intention of identifying "mutually agreed upon industry best practices (and) loan repair process," according to NPA.

But in a fax sent in September, Fairbanks said, "We do not believe a 'written partnership' with NPA or ESOP is necessary." The company also said that it would not do several other things which the organizations thought had been agreed upon, such as sending Cleveland-area borrowers information about ESOP in response to complaints.

MSN obtained a copy of the fax from the NPA. Fairbanks, said Tracy Leary, an organizer with NPA's coordinating member organization, the National Training and Information Center is taking action to address problems with the loans it services. But, she said, "we still want something in writing from them."

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