Did you wonder how Saxon Mortgage was rated the best for mortgage modifications? Did you fail to get a mortgage modification while reading news reports about Saxon? We question the numbers, as news reports claim Saxon Mortgage Services modified 36 percent of their loans. The information could be flawed, based only on interviews with senior executives:
The government had conducted “readiness reviews” of only seven of 27 mortgage servicers the GAO examined; no more were planned. The reviews only included interviews with senior executives – and the information gathered wasn’t verified.
“Treasury cannot identify, assess and address risks associated with servicers that lack the capacity to fulfill all program requirements,” the GAO said.
Under the Treasury Department’s mortgage modification program, three parties can participate: the company that owns the loan, the company that services the loan, and the homeowner. All get a portion of the more than $20 billion that the federal government currently estimates it could spend to keep homes out of foreclosure.
Since Saxon Watch (this website) receives real reports from real people it became apparent that Saxon claimed one thing while doing (or failing to do) another. When a self-serving self-aggrandizing interview – and no other data – is the basis for the Treasury’s report card, we wonder if the Treasury will follow up.
Clearly more needs to be done. Start with tracking the money and looking for fraud. Then find out if the Treasury was lied to during the “How Great Thou Art” interview.
Saxon is too disorganized to perform mortgage modifications correctly.