The Broader Market

by Peter Swire and Jordan Eizenga

The current structure of the mortgage-servicing industry is such that servicers are responsible to investors and “owe no duty at all to consider the needs and interests of consumers.” That is, the clients of mortgage-servicing companies are investors in mortgage-backed securities for whom the servicers collect monthly mortgage payments from homeowners and, as a result, servicers have no fiduciary responsibility to protect consumers from improper acts and omissions by mortgage servicers.

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