Push for monthly mortgage statements escalates

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

"I noticed an online petition to require all mortgage lenders to provide borrowers with monthly statements of their account. Is this a good cause?" Yes, because borrowers don't choose the firm that services their mortgage, they can't fire the firm for cause, and their existing legal protections are weak. A law requiring servicers to provide monthly statements that update the account and explain all changes in it will not eliminate servicing abuses, but it will help alert borrowers protect themselves. It won't help borrowers who sleep at the switch; they need other legal protections, which will be the subject of another column. Here are a few things that can happen to borrowers, which, in the absence of monthly statements, they might not find out about in time to prevent irreparable financial damage: 1. The servicer doesn't pay taxes or insurance on time, which results in a lien being placed on the property or insurance being cancelled. 2. Because the borrower does not make the full e...