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A.G. Wags Finger at Florida's Big Banks
By
Jared Halpern, Reporter
@ November 18, 2009 6:20 AM Permalink | Comments (0)
Florida's largest lending institutions are raising the ire of hundreds of homeowners and attracting some scrutiny from Attorney General Bill McCollum. Bank of America, Wachovia, J.P. Morgan-Chase and Wells Fargo are all on the receiving end of a letter sent out by the A.G. calling the banks' loan modification processes "irresponsible and unacceptable."
"I don't think it is criminal," McCollum told WOKV. "But I do think it's outrageous that they don't have anybody here on the ground helping people as they would normally help them set up a loan in the first place."
During the sub-prime collapse last year, these four national banks bought up thousands of loans in Florida from companies like Countrywide. Under a deal with the state, the four banks must let qualifed homeowners refinance and modify loans. But, McCollum says hundreds of customers have called his office to complain that the process is taking far too long and in some cases, homeowners are fearful banks could move forward with foreclosure proceedings.
"We had an original loan modification mailed to us that Bank of America refused to honor," Jacksonville homeowner Russell Gordon tells WOKV. "They find new and creative ways to say they didn't get our paperwork. They get our documentation, put us in and out of the review process. We've been in the review process four different times."
Gordon complains all the while, he's still being charged interest and late fees and worries if the back-and-forth continues much longer he could lose his home. He hired a private attorney and took his complaints to the Attorney General's office.
Bank of America has not threatened foreclosure and McCollum doesn't believe any crime is being committed by any of the banks, but tells bank executives that "banks must provide homeowners who are seeking to modify their loans the same level of customer service that was provided to these homeowners at the time the loan documents were signed and the banks were making the sale."
"The four national banks that are in Florida dealing with the sub-prime issues don't appear to have any human beings in the state that are personally tending to the issue of somebody coming in and saying, 'Hey, I would like to modify my loan.'"
McCollum is meeting with the Presidents of all four banks, hoping to stress the importance of effecient loan modifications for qualified homeowners.
"I don't understand what the hold up is," Gordon says. "They took 16 billion dollars of taxpayer bailout money."
Local News
A.G. Wags Finger at Florida's Big Banks
By
Jared Halpern, Reporter
@ November 18, 2009 6:20 AM Permalink | Comments (0)
Florida's largest lending institutions are raising the ire of hundreds of homeowners and attracting some scrutiny from Attorney General Bill McCollum. Bank of America, Wachovia, J.P. Morgan-Chase and Wells Fargo are all on the receiving end of a letter sent out by the A.G. calling the banks' loan modification processes "irresponsible and unacceptable."
"I don't think it is criminal," McCollum told WOKV. "But I do think it's outrageous that they don't have anybody here on the ground helping people as they would normally help them set up a loan in the first place."
During the sub-prime collapse last year, these four national banks bought up thousands of loans in Florida from companies like Countrywide. Under a deal with the state, the four banks must let qualifed homeowners refinance and modify loans. But, McCollum says hundreds of customers have called his office to complain that the process is taking far too long and in some cases, homeowners are fearful banks could move forward with foreclosure proceedings.
"We had an original loan modification mailed to us that Bank of America refused to honor," Jacksonville homeowner Russell Gordon tells WOKV. "They find new and creative ways to say they didn't get our paperwork. They get our documentation, put us in and out of the review process. We've been in the review process four different times."
Gordon complains all the while, he's still being charged interest and late fees and worries if the back-and-forth continues much longer he could lose his home. He hired a private attorney and took his complaints to the Attorney General's office.
Bank of America has not threatened foreclosure and McCollum doesn't believe any crime is being committed by any of the banks, but tells bank executives that "banks must provide homeowners who are seeking to modify their loans the same level of customer service that was provided to these homeowners at the time the loan documents were signed and the banks were making the sale."
"The four national banks that are in Florida dealing with the sub-prime issues don't appear to have any human beings in the state that are personally tending to the issue of somebody coming in and saying, 'Hey, I would like to modify my loan.'"
McCollum is meeting with the Presidents of all four banks, hoping to stress the importance of effecient loan modifications for qualified homeowners.
"I don't understand what the hold up is," Gordon says. "They took 16 billion dollars of taxpayer bailout money."
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