State Attorneys General Is Changing Lending Practices

The banking industry has been taking advantage of the consumer for too many years with their lending practices. So it is nice to see the State Attorneys General are trying to negotiate a national settlement with 14 of the larger banks and lending servicers.

The final draft is still not completed but is asking for billions in penalties and additional billions in principal reductions. It is about time!

One of the changes they will be asking for is to stop dual tracking that is when lenders negotiate loan modifications while also initiating foreclosure procedures. This needed to be changed a long time ago.

The prediction for foreclosure and bank owned properties will slow down dramatically in the next year and a half as real estate improves which is already being felt in markets like Asheville. In fact Asheville Real Estate is seeing a substantial increase in second home.  We are not seeing the number of bank owned properties that you see in other cities.