[Moe Bedard]

I read somewhere that part of the bill exempts servicers from being sued by investors because of a modification. If this is true, wouldn't this potentially lead to increased modifications or principal reductions? I'll find a link if needed.

This is something I didn't read in it. BUT , will read it again for this clause. This would be HUGE for us all, but we still may have hesitation form servicers based on the simple fact that they make money when someone is in foreclosure and default and it costs money to do a loan modification or big money in principle write downs etc.

Also, on the participation front, I read this internal Bank of America document a while back - http://www2.nationalreview.com/dest/2008/06/20/bofa.pdf.

What these banks and servicers claim and what they are doing have been common knowledge among st consumer advocates and homeowners who see the BS everyday. Most of it is lies, cover ups and lip service.

It essentially is very supportive of the bill. It seems like they are in favor of the bill, but if nobody participates then I think the next bill that goes through congress won't be so "voluntary".

Yes, Barney Frank KNOWS this is a very serious issue and he made this comment the other day.

Barney Frank Calls for Foreclosure Freeze

By Moe Bedard on July 25th, 2008
The chairman of the House Financial Services Committee called on lenders to stop filing foreclosures until a new foreclosure-prevention program takes effect.
On Wednesday, Rep. Barney Frank (D-Mass.) had called on lenders to make immediate use of the program, which is included in a massive housing package that passed the House this week and is expected to be put to a vote in the Senate this weekend. President Bush has said he will sign the measure. Frank yesterday corrected those remarks, noting that the program would not take effect until Oct. 1.

The program seeks to move as many as 400,000 distressed borrowers into more affordable loans backed by the federal government. Erick Gustafson, a lobbyist for the Mortgage Bankers Association, said loan servicers would consider Frank’s request.

Comment from Moe: Barney, don’t ask, MAKE THEM!

Washington Post



Thanks again,

ccsint[/quote]