Default fees make lenders reluctant to modify mortgages

07/30/2009 | NYTimes.com

The main factor blocking the Obama administration's campaign for mortgage modifications is the profitability of fees charged by lenders for delinquent mortgages, lawyers and industry experts said. Margery Golant, a lawyer in Florida who helps homeowners fight foreclosures, said lenders have no incentive to modify loans. "I don't think they're motivated to do modifications at all," Golant said. "They keep hitting the loan all the way through for junk fees. It's a license to do whatever they want."

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