Massachusetts mortgage settlement met with skepticism

A settlement agreement between Massachusetts Attorney General Martha Coakley and mortgage lenders Countrywide and Bank of America has been met with skepticism by some housing advocates, according to a report filed by Jenifer McKim in the Boston Globe.

“Bank of America has been one of the worst loan servicers in offering homeowners help in this crisis,’’ said Boston lawyer Gary Klein.

Meanwhile, Kris McDonald, a community leader with the nonprofit Brockton Interfaith Community, was a little more hopeful. “Less foreclosures means less hardship to homeowners and less deteriorated structures in our neighborhoods,’’ said McDonald. “We’re encouraged by this announcement, but we’re reserving judgment until we see concrete action from Bank of America.’’

The settlement calls for Bank of America and Countrywide to propose reductions in principal on underwater home loans at the beginning of the loan modification process, rather than as a last resort. The skeptics don’t think they will do it even after the settlement. Time will tell; if you have personal experience dealing with either of these lenders, let me know.

 

By Doug Beaton

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