photo credit: purpleslogA watchdog group is investigating providers of American investment property loans as part of crackdown on “anti-consumer practices”.
America’s Watchdog said it was looking for insiders and former employees of Washington Mutual and Countrywide Home Loans to get more information on the companies’ home mortgage sectors.
The group is using its National Mortgage Complaint Centre to investigate possibilities of overcharging and mis-selling of insurance.
Washington Mutual collapsed in September this year and was later bought by JPMorgan Chase & Co, while Countrywide Home Loans was acquired by Bank of America in July.
Americas Watchdog said:
“We think poor mortgage servicing abusive practices are widespread and we need to hear from courageous current or former employees to try to help millions of US homeowners who may have been mistreated in the mortgage payment process.”
The group is also looking for anyone who has information about basing charges on estimated fees and expenses as opposed to confirmed amounts.
It is also looking into possible misapplication of homeowners’ reserve payments for taxes and insurance, resulting in borrowers showing as late paying.
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