“U.S. Will Push Mortgage Firms to Reduce More Loan Payments” states “But the mortgage companies that collect payments from homeowners — servicers, as they are known — generally do not own the loans. Rather, they collect fees from investors that actually own mortgages, and their fees often increase the longer a borrower remains in delinquency.”
WATCHDOG: Even the New York Times in this extended article misses the main point, one that was made repeatedly last year by witnesses before the Senate Finance Committee (as broadcast over C-SPAN.” Most mortgages have been ‘sliced and diced’ with portion sold in secondary security markets to various investors and are managed by mortgage service companies.
The servicers have no authority to adjust the terms of the mortgage! That is why witnesses urge Congress to empower the service companies to adjust terms and rates.
