While the goal of the investigation launched by Attorney's General from all 50 states was to scrutinize the foreclosure document robo-signing practices of major mortgage lenders, the group appears to have a new goal; making loan modifications more effective and more accessible. Iowa Attorney General Tom Miller, the head of the Attorney's General group, is about more than robo-signors and has stated that the "biggest issue is fixing the loan modification system."
The Senate Committee on Banking, Housing and Urban Affairs have had hearings involving executives from many of nations largest mortgage lenders but have come up with no real answers as to why the current system isn't working. Senator Michael Bennet noted near the end of one such hearing that he is "still completely unclear" why it is so hard for mortgage lenders and servicers to carry out mortgage modifications. Mr. Miller has also stated "he wants to change the paradigm within the current system so it functions."
With the Home Affordable Modification Program falling far short of the expectation that it would help 3 to 4 million struggling homeowners this may be a silver lining on an otherwise dark cloud.