Released: October 23, 2007

Criticism rains down on mortgage industry

Source: Noelle Knox and Sue Kirchhoff, USA Today

Chetera Miller, a credit counselor for Neighborhood Housing Services of Chicago, has noticed that lenders are becoming more willing to cut deals with delinquent borrowers. She’s been able to help eight homeowners restructure their loans over the past few weeks.

There’s just one problem: That’s only about half the number of financially strapped clients she’s working with. Miller’s caseload is expanding as more homeowners fall behind on their adjustable-rate mortgages.

A public outcry against the mortgage industry is growing louder. Lawmakers, regulators and consumer advocates say they are increasingly worried about the fallout from a record number of homes going into foreclosure. They’re pushing the industry to move faster to aid homeowners, by forgiving past-due amounts, lowering rates and shifting people into fixed-rate loans.

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