Banks Defend Servicing Practices

The hearing, Problems in Mortgage Servicing From Modification to Foreclosure, was held Tuesday by the Senate Committee on Banking, Housing & Urban Affairs.

In addition to Chase Home Lending CEO David Lowman, Bank of America Home Loans President Barbara Desoer and Mortgage Electronic Registration Systems Inc. President and CEO R.K. Arnold were among the witnesses to testify.

Around one hour and 20 minutes into the hearing, one of the witnesses, National Consumer Law Center Counsel Diane E. Thompson cited a MortgageDaily.com story in a question-and-answer session with Sen. Robert Bennett (R-Utah).

“Mortgage Daily news, hardly a radical publication, reported in June of this year that servicers, generally, their profit per loan, had increased over the previous year despite the fact that foreclosures were rising,” Thompson testified.