OCC issues new guidance on telemarketing relationships

House Financial Services Committee passes loan modification bill HR 5579MortgagePress.comHR 5579, House Financial Services Committee, Emergency Mortgage Loan Modification Act of 2008 The House Financial Services Committee passed the Emergency Mortgage Loan Modification Act of 2008 (HR 5579). HR 5579 would: 1. Establish a standard for loan modifications or workout plans for pools of certain residential mortgage loans; 2. Create a duty for the servicers of such pooled loans to maximize recovery of proceeds for the benefit of all investors and holders of beneficial interests in the pooled loans, and not to any individual party or group of parties; 3. Deem the loan servicer to be acting on behalf of the securitization vehicle in the best interest of all such investors and holders if the servicer makes certain loss mitigation efforts for a loan in or facing payment default in the reasonable belief that such efforts will maximize the net present value to be realized over that which would be realized through foreclosure; and 4. Declare that, absent of specific contractual provisions to the contrary, a servicer acting in a manner consistent with such duty shall not be liable to specified persons for entering into a qualified loan modification or workout plan for loss mitigation purposes. For a copy of the bill, please click here.