Abuses by the Mortgage Industry
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In the past few years, lawsuits and media coverage have brought to light the less-than-stellar practices of many mortgage lenders and servicers in the past decade. Mortgage servicers have cut corners in foreclosure procedures and made grievous errors in calculating defaults and managing homeowners' accounts. Some of the more egregious practices -- like using "robosigners" to sign off on foreclosures -- were covered by national media. Others, like miscalculating amounts due, were widespread but didn't make a big splash in the newspapers.
Below you can learn more about the most common mortgage industry abuses, as well as some of the national efforts to remedy past abuses and prevent future ones.