To complete our postings for the keys points of the New Survey of California Housing Counselors Points we see that not only does the role of the counselor continue to shrink but that the banks failed to improve the service in most of the areas which they promised to fix.
Take a look at the last two finding from the report:
Finding #5: The need for nonprofit housing counselors has never been greater, yet their capacity is shrinking. Seventy-five percent of housing counselors report that they expect demand for their services to increase in the coming year, but 37% of their offices need to cut back their services.
Finding #6: Servicers failed to meet almost all of the key metrics that they have promised to fix over the last few years—these include preventing delays, keeping paperwork in order, and more. In addition, HAMP continues to fail homeowners as denials and being stuck in trial modifications continue to be identified as the most likely outcomes for HAMP applicants.
The report outlines a number of important policy recommendations that would ensure that banks comply with the California commitment under the Attorney General settlement and identify servicing standards that the Consumer Financial Protection Bureau could implement. Keep in mind that the AG agreement only covers five institutions and runs for three years.
This week, the California State Assembly and Senate committees on banking will vote on the Foreclosure Reduction Act of 2012 (AB 1602/SB 1470) which would outlaw dual track, and give homeowners the right to sue banks for failing to comply with the legislation. It’s time for the California State Legislature to pass this law, and the other strong bills in the “Homeowner Bill of Rights” package being championed by Attorney General Kamala Harris.