Mortgage Servicing Companies Stiffing Maryland Governor On Call For Foreclosure Summit?

In Annapolis, Maryland, WBAL-TV Channel 11 reports:

• Gov. Martin O'Malley has called for an emergency work session with mortgage [servicing] companies to hammer out solutions to the foreclosure crisis. Letters have been sent to about a dozen loan [servicing] companies requesting they attend a summit on Feb. 28. But so far none of the loan companies have responded.

For more, see No Responses to Governor's Call For Foreclosure Summit (read story) (watch video).

Editor's Note:

In the WBAL-TV 11 video, Governor O'Malley refers to the "huge amount of losses" that the lending industry is facing. Someone in Maryland better explain to the governor that the mortgage servicing companies aren't facing any losses in foreclosure and have no incentive to meet with him. In fact, the servicing companies actually make more money when homes go into foreclosure with late fees and other default-related fees. The actual owners of the home mortgages, at least those of the subprime variety, are generally mortgage securitization trusts, interests in which are owned by private investors (ie. insurance companies, mutual funds, government and private pension funds, etc.) that are disbursed all over the world - and are only now beginning to wake up to the fact that their investments in the subprime mortgage trusts are tanking. While they may have an interest in mitigating their losses, the mortgage servicing companies who represent them (and who profit when there are more homes in foreclosure) don't.

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