CRC: Borrowers Not Getting Modifications

The California Reinvestment Coalition says mortgage servicers and lenders are still not working with borrowers who need loan modifications in order to keep their homes. In a third survey of California mortgage counseling agencies servicing homeowners statewide, CRC said it found that despite lenders' promises to help borrowers, foreclosure is still the most common outcome for homeowners struggling to make mortgage payments. "With little accountability, obligation, or oversight, home loan servicers are not doing enough to keep borrowers in their homes," says Kevin Stein, CRC associate director. "For some borrowers, this may mean that they will be doubly victimized by predatory lending practices on the front end, and now by unhelpful loan servicing practices that lead to foreclosure on the back end. We must work immediately and diligently towards solutions to avoid this result." CRC released the report "The Continuing Chasm Between Words and Deeds III," at a press conference held at counseling agency in Stockton, Calif. The report analyzes a survey of 42 mortgage counseling agencies that served 11,062 borrowers in April 2008.