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The Underwhelming Frannie Loan-Mod Plan

[It's based on the idea that servicers "have dedicated personnel who are experienced in working with borrowers who are struggling with finances, but who are eager to keep their homes". Not nearly enough of them, they don't]

The servicing business makes about as much sense in this environment as selling Hummers.

When "nobody" was defaulting, it was great. But now that the business requires real work, there's not enough revenue to adequately staff, much less properly process the files.

If investors become willing to pay more in servicing fees, then the problem will be adequately addressed.

Meanwhile, they'd seen just exactly how their money HAS been managed over the last few years, I think they might have a stroke.