Bank of America Makes Major Loan Modification Changes; The “Nationstar Experience”
After recent allegations by former employees and whistleblowers regarding serious loan modification abuses by Bank of America, it appears substantial changes have been made. Most notably, a huge portion of Bank of America’s loan portfolio has been transferred to Nationstar. Bank of America and Nationstar were most likely working on the deal to transfer loans prior to the whistleblower allegations going public, but the timing is certainly a notable coincidence.
Loan Modification for Remaining Bank of America Loans
The positive that seems to have come out of the Bank of America whistleblower mini-scandal is that BOA seems to be actually working more fairly with borrowers, and with fewer loans to collect on, borrowers reportedly have gotten better service. Our office can confirm this to be true in our own experience as well. BOA seems to be more responsive and has an easier time processing, reviewing and following up on documents. These changes are certainly good news for distressed borrowers facing foreclosure. Foreclosure rates themselves don’t appear to have changed, at least not just yet.
The Nationstar Experience
On the flip side, if your loan was transferred from Bank of America to Nationstar, it appears things just went from bad to worse! As slow and non-responsive as BOA was, Nationstar is much worse (in our experience). Forget the single point of contact, there’s just zero contact with Nationstar. It appears they took on all these new distressed loans (which they likely got into very cheap), without any real way to service the borrowers. Nationstar is presently struggling to piece together their systems and procedures to answer the phone, assign files, receive and process documents, review financials and approve loan modifications.
Nationstar Mortgage Litigation and Foreclosure Defense
In another twist, Nationstar has been fairly amicable and professional throughout the litigation process, as BOA always was. It seems the most effective way to get the most positive Nationstar loan modification results is to file the wrongful foreclosure lawsuit and work diligently with Nationstar’s counsel in mediation or informal settlement discussions.
Nationstar Loan Modification and Bank of America Loan Modification Attorneys
McFarlin LLP represents homeowners and borrowers in Mortgage Litigation and Foreclosure Defense. The objective is always to keep you in your property with an affordable, and sustainable payment. Call our loan modification litigation attorneys for a free consultation today at: (888) 728-0044.Post Tags: Loan Modification, mortgage industry, Mortgage Litigation