Question: What do mortgage servicers and phone sex have in common? Answer: They both cost $9.99 a minute.
This is just one of the findings Professor Katie Porter documents in a new study of mortgage servicer practices. Most of the things that servicers do never see the light of day. People grumble — and keep on paying. But when homeowners file for bankruptcy, the paperwork is a matter of public record, and it is supposed to show all the charges. And there it is: $9.99 a minute to talk with the mortgage servicer to try to get the mortgage servicer’s own mistake corrected.
Mortgage servicers get paid by the mortgage lenders for collecting money and working out deals with those in trouble. But most mortgage servicers can eat what they kill — that is, they can keep whatever fees they can squeeze out of the customers. That creates one more middleman whose interests are at odds with those of the customer. The bankruptcy records show that some mortgage servicers have gotten very creative.
What a deal! Make a mistake, then charge the customer for trying to get it fixed. No need for heavy breathing. When it comes to making a profit, this is better than talking dirty.
