I will consider legislation that enables lenders to convert unworkable mortgages into stable, affordable loans without the permission of investors. Protection from lawsuits will remove the obstacle that keeps lenders, servicers and others from turning mortgages that were designed to fail into mortgages families can afford. Right now, servicers who process monthly loan payments and interface with homeowners have flexibility to modify loans. However, they are reluctant to fully exercise this discretion in part because they fear investor lawsuits. Investors who own the securities into which the mortgages have been packaged may assert that they are harmed when servicers help at-risk borrowers. Protection from lawsuits could enable the servicers to help homeowners avoid foreclosures, help investors avoid the losses they would otherwise suffer, and help the economy.
Servicers aren’t afraid of lawsuits. They’re BOUND by the law to honor the contracts signed as part of the securitization of loans.
Refresher. Securitization is what lets the majority of people get loans. Period. If I loan you $100, I can’t use that money until you pay it back. If 20 investors get together and invest $5 in me plus a finder’s fee, they own the loan now, and I have $100 I can loan again.
Guess what, Hillary? The lenders and servicers DO NOT OWN THE LOANS that you’re referring to. It’s not a question of permission of the investors. They OWN the loans. Except as defined in the contracts, lenders and servicers cannot legally make changes to the mortgages they originated.
More importantly, reread:
I will consider legislation that enables lenders to convert unworkable mortgages into stable, affordable loans without the permission of investors.
Translation: I’m going to try to make it legal for a third party to monkey around with someone else’s property without their permission.
What you’re proposing is no different that George Bush’s foreign policy. Arbitrary decisions made without respect for the law – however flawed you think it might be – are what got us into a bunch of very sandy places. Now you’re publicly posting on your own web site that you’re willing and eager to ignore laws as it suits you politically? Sounds awfully familiar to me. Apparently your time at Yale taught you the same respect for the law as your classmate, Mr. Bush.
Whatever meager chance you might have had for my vote just evaporated.