Rage brewing nationwide over mortgage deal

March 13, 2012 04:30PM

On the heels of the release of additional details on mortgage abuses from a report by the U.S. Department of Housing and Urban Development, borrowers are expressing full-blown rage regarding the details of the settlement, finalized yesterday, CNN reported.

The one million borrowers who could receive payments from the settlement are barely a fraction of borrowers who are in default, a number of people told CNN, and the $1,500 to $2,000 pay-outs just aren’t enough. Not to speak of those whose homes have already been lost to foreclosure or whose loans are not serviced by the five largest servicers, which are the only lenders affected by the settlement.

“If it’s offered to one group, it should be offered for all,” said Stacy Ovendale, a homeowner in Seattle. “When my mortgage was written up, I had to take whatever program was available to me at the time, which happened to be FHA. … It’s so frustrating because my loan is with Bank of America but since it’s [now serviced by] FHA… there is nothing they can offer me in the way of principal reduction.” [CNN]