Page 44 - Loan Modifications News Today : Breaking News, Live Updates & Top Stories | Vimarsana

We settle it, block people from going to see the memorial, that's foolish. >> reporter: that's certainly one way to describe it. now the pressure is on to come up with a deal. all the last deal was really just set a new deadline to come up with a more permanent agreement. that's going to have to happen by the end of the year if congress wants to meet that deadline because otherwise, the government could face another shutdown in the middle of january and come right up against that debt limit again in early february. don? >> all right, chris lawrence, thank you very much for that, chris. break...

90 days. this is the first occasion we've had the privilege. the most common abuse appears to be that banks are not informing people who apply for loan modifications that they have insufficient documents. for instance, the error rate for citi was 53%. would you say that we are a still long way from where we need to be on these issues? >> on these issues, absolutely. and, in fact, one of the powers that the monitor has is not only to find these problems but to add more tests where he's finding problems. so we expect to add more testing on these kinds of problems. the other thing i would say is ...

Financial system. investors are helped if people get loan modifications. >> right. >> servicers profit. >> so the thing that's horrible about this is there was a program that was a part of t.a.r.p. called hamp that was supposed to help homeowners avoid foreclosure. t.a.r.p. would not have passed if hamp were not a part of it. when they tried to push t.a.r.p. through without hamp, congress said no. >> it failed the first time around. >> you must help homeowners. this lawsuit shows us in crystal clear terms why that is. >> i want to -- >> a minuscule part of hamp has actually been used for refin...

To struggling homeowners right up to the point of foreclosure. to hoodwink borrowers, stall for time and maximize the amount of money bank of america got. now, we've known for years in talking to the people on the receiving end of the bank's treatment that borrowers seeking loan modifications were strung along and screwed over. now we have what appears to be the smoking gun. here's just a sample of what the bank of america employees said under oath. simone gordon, senior collector, 2007 and 2012, "we were told to lie to customers and claim that bank of america had not received documents it had...

Securities that brought down the financial system. investors are helped if people get loan modifications. >> right. >> servicers profit. >> so the thing that's horrible about this is there was a program that was a part of t.a.r.p. called hamp that was supposed to help homeowners avoid foreclosure. t.a.r.p. would not have passed if hamp were not a part of it. when they tried to push t.a.r.p. through without hamp, congress said no. it has not helped homeowners and this lawsuit shows us in crystal clear terms why that is. >> i want to -- >> a minuscule part of hamp has actually been used for refi...