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News Link • Economy - Economics USA

Who’s who in the foreclosure scandal: A primer on the players

The unfolding foreclosure scandal just keeps expanding. Scrutiny first fell on the “robo-signers” who rubber-stamped banks’ foreclosure paperwork, but they’re one of the many players who may have contributed to the mess.

To help sort it all out, we’ve drawn up a cast of characters. Let’s start with the basics:

Loan Originators/Mortgage Issuers –Banks make mortgage loans to homeowners, which homeowners must repay. The home serves as collateral in case the borrower defaults on the mortgage.

Mortgage Servicers – Mortgage servicers collect mortgage payments and foreclose on delinquent loans. These are usually the nation’s biggest banks, which all have mortgage servicing units.

As we’ve noted, these servicers have also been charged by the federal government with helping eligible homeowners avoid foreclosure through the government’s Making Home Affordable loan modification program.

1 Comments in Response to

Comment by Dave Wilber
Entered on:

 Banks loan nothing but pens to sign notes.

Why should they be permitted to sieze

more value than they loaned

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