1. Why servicers foreclose when they should modify: The National Consumer Law Center takes a look into why loan servicers – the people who actually control most mortgages – aren’t helping home owners when they should. The report goes into a fair bit of depth over 60 pages. The report says that “servicers remain largely unaccountable for their dismal performance in making loan modifications.” Diane Thompson, a lawyer and the report’s author, told HousingWire that financial incentives are all weighed in favor of foreclosure. She said: “The way that a servicer gets paid entirely pushes the servicer to proceed with a foreclosure and not to do a loan modification.” Among the report’s recommendations is a call for state legislators to mandate servicers to consider a loan modification before any foreclosure is started, then require a modification where they are more profitable to investors. Oregon’s new law, SB 628, does require lenders to talk with borrowers interested in a foreclosure. But the law falls far short of what the National Consumer Law Center is advocating. In a previous report, the National Consumer Law Center painted Oregon legislators as weak-kneed in their reforms in the face of industry opposition.
2. Cloepfil-led team wins nod of Vancouver I-5 cap:
