I always enjoy reading Peter G. Miller’s blog posts over at FHALoanpros.com and also the many other publications and real estate oriented websites that he writes for. Peter’s weekly columns appear in more than 100 newspapers nationwide, he is also published in a variety of other media outlets and he is a frequent speaker at national events and conventions.

Today he wrote a post on his FHALoanpros.com website called Are Failing Mortgage Borrowers Not Responding To Lenders?  

He makes some great points in response to the recent testimony of Secretary Treasurer Paulson’s comments to the affect that homeowners were not reaching out to their lenders. I though they were right on the money and I thought that I would share them with my readers.

Mr. Miller also has made some great quotes and remarks all over his blog. Here is a great one from a recent debate he had with Prof. Samuel D. Bornstein.

“One anonymous quote from who knows where does not an argument make.

The idea that borrowers alone are responsible for the current mortgage meltdown is not believable. Huge numbers of borrowers were entrapped by lenders upon whom they relied, lenders who had no obligation to get the best rates and terms for borrowers.

“Correct me if I am wrong,” writes Prof. Bornstein, “aren’t we now involved in a massive effort to save these borrowers from foreclosure?”

Sure, you’re wrong. We are now involved in a massive PR campaign to shift blame from lenders to borrowers and to do nothing to change the system which allowed lender abuse and borrower cheating.

As to actual efforts to save troubled borrowers, they are extremely limited. As Moody’s reports, “Despite much industry dialog and heavy press attention on the topic of loan modifications as a mitigation technique to avoid foreclosure and reduce losses on defaulted loans, the survey results suggest that on average subprime servicers have only recently begun to materially increase the number of modifications as it relates to interest rate resets. Specifically, the survey showed that most servicers had only modified approximately 1% of their serviced loans that experienced a reset in the months of January, April and July 2007.”

  There is a massive effort to save Wall Street firms and investors, but as to borrowers — as Borat might say — not so much. A 1 percent solution is hardly impressive, or impressive at all.

Way to tell it like it is Peter!