Sources say mortgage servicers are now expected to conduct background checks on their employees, many of whom have engaged in fraudulent or reckless activities with the homes they are tasked with protecting.
Mortgage Servicers Face New Industry Regulations
For year, mortgage servicers and the banks that hire them have engaged in numerous acts of fraud against consumers, including acts like improperly charging excessive fees, mismanaging mortgage accounts, and attempting to take over homes before they had a legal right to do so.
But perhaps the most notorious activity of these mortgage servicers has been their failure to properly supervise the workers they hire to monitor and inspect homes that are going through the foreclosure process. Rogue employees have reportedly broken windows, looted valuable items, and intimidated occupants of foreclosed properties.
In response to these allegations, industry representatives have issued a series of guidelines for mortgage servicers hiring new employees. These measures, according to Eric Miller, the executive director of the National Association of Mortgage Field Services, will “give communities a high level of confidence that the people walking around in homes are not going to cause problems.”
Mortgage Servicers Promise to Reduce Foreclosure Fraud
While the mortgage industry seems to be taking major steps towards real reform, homeowners have heard this tune before, so a bit of skepticism is probably warranted. And since the foreclosure crisis shows no signs of abating in the near future, mortgage servicers will have plenty of opportunities to engaged in fraudulent activities in the future.
If you've been injured by a mortgage servicer, or believe the party servicing your home mortgage has engaged in any wrongdoing, contact an Illinois foreclosure attorney to learn more about protecting your legal rights.