Thanks for the great angle.

To

Loan Companys Gone (Absurdly) Wrong

Change {America’s public school system} to America’s home mortgage system.
Ok, now lets change the word {parent} to homeowner.
Now with a little more change (I like that word) change
{Superintendent of Schools} to the fed/congress/anyone out there!.
Change {student} to home. {Children’s teachers} to Congressman
{Principal} to? let’s say Littion Loan.
Change {San Francisco Bay Area} to Any Town U.S.A.
{Safety} to loan scams
{School district’s superintendent} to hope now
{Education reform} to Mortgage reform.

Now read the little word switch below.
I will not ( I did!) change the whole blog but you will still get the picture.

As I described in my recent “Race to the Top?” series, the need for significant reform of America’s home mortgage system is great (Part II), yet the institutional obstacles preventing reform seem even greater (Part III). The challenges of changing a system that is so entrenched came to absurd light from a reader of my “RTTT?” series who shared with me her frustrations in trying to hold Littion Loan accountable for what the homeowner believed was incompetence and negligence related to her home in Any Town U.S.A. This homeowner has provided me with a series of e-mails documenting her and other parents’ attempts to get the fed/congress/anyone out there to take action against Littion Loan.
Let me begin with a disclaimer that all of my information is from one person and that it may not represent a complete or balanced picture of what happened. Nonetheless, the flagrant ridiculousness of the situation I will describe provides, at a minimum, a glaring illustration of the massive roadblocks, both substantial and laughable, that stand in the way of meaningful Mortgage reform. I have also kept all parties and homeowners anonymous to protect the innocent (and, unfortunately, also protect those who may be guilty).
The issue in this case relates to Littion Loans handling of a series of incidences of bullying and assault by out-of-control mortgage companys over the past several years. After frequent complaints about loan scams to her Congressman, and inadequate responses from Littion Loan, the mother reported her concerns to Hope now.
Though the mother got plenty of lip service and crocodile-teared concern from the Littion Loan and hope now, the situation didn’t turn absurdly comical (if it wasn’t so sad) until an e-mail arrived from the hope now in response to a letter signed by ten homeowners asking that litton loan be replaced or reassigned to another Loan company because of the his/her behavior and actions.
Let’s deconstruct the email to demonstrate the complete absence of logic, reason, or concern for homeowners that seems to be reflective of much of our public Mortgage reform system:
1) “The District does not as a practice, accept, investigate nor take action upon anonymous complaints against loan companys.”
The use of the word “anonymous” has a certain Clintonesque “is” quality to it. This complaint was signed, so the letter wasn’t anonymous. But, quite reasonably, the homeowners didn’t want their identities revealed when the complaint was discussed with litton loan. So the hope now people appeared to redefine the meaning of anonymous to fit the loan companys policy, thus absolving the fed/congress/anyone out there! office of responsibility for investigating the concerns.
As the fed/congress/anyone out there! office noted in several e-mails to the homeowner, it is very concerned about protecting the loan companys confidentiality, yet it shows little regard for the confidentiality of the homeowners (and, by extension, the persons home).
2) “As the homeowners handbook? indicates, the fed/congress/anyone out there! goal is to have concerns and complaints handled at the lowest level possible.”
And several years and much effort had been devoted to having these problems “handled at the lowest level possible” (with no success, I might add). But the hope now office didn’t even acknowledge those lower-level attempts at resolution and, in doing so, passed the buck back to the homeowners.
3) “Accordingly, a loan company is given a copy of any complaint against him/her and in addition to the expectation that an attempt is made to address the concern, the homeowner has the right to attach a written response.”
So, the ” loan company is given a copy of any complaint against him/her” (emphasis added) except, of course, when the loan company is not. What does this statement have to do with anything related to the complaint? Because it is very official sounding, it gives the appearance of relevance without actually being relevant at all. In other words, it’s bureaucratic filler. Another convenient disavowal of the complaint.
4) “A complaint is a formal written statement alleging a substantial misapplication or violation of loan companys, district, state or federal rules or regulations. A petition from several homeowners declaring dissatisfaction and requesting loan companys dismissal, does not meet the parameters of a formal complaint. Again, complainants need to include the details of their concerns regarding a specific incident …”
Granted, the signed letter lacked detail, but, if the fed/congress/anyone out there office had taken these concerns seriously, wouldn’t it have provided guidelines on how to prepare an acceptable complaint or expressed a willingness to help in preparation of the complaint so that it met its parameters for submission? And, last time I checked, ten homeowners is far less than oodles of homeowners, but far more than “several homeowners.”
5) “…and be willing to meet with the homeowners in person in an attempt to resolve the concerns.”
The homeowners already tried that a number of times to no avail. That’s why they went up the food chain to the fed/congress/anyone out there office. By the way, as for attempting to resolve the concerns directly with the litton loan, we all know how well people react when confronted with an effort to have them fired. It should be the responsibility of the fed/congress/anyone out there office to act as the advocate for the complainant (which is really the homeowner).
6) “The concept of protection for a “whistle blower” — which is most often an homeowner alleging illegal activities by his or her loan company and at personal risk for reprisal by said litton loan — does not apply. ”
Why doesn’t it apply? Whose definition is that? No explanation or rationale is given. According to Wikipedia.com, a whistleblower is defined as someone who reports “a violation of a law, rule, regulation and/or a direct threat to public interest, such as fraud, health/safety violations, and corruption.” As the saying goes, if it looks like a duck and sounds like a duck, it’s probably a duck. The homeowners seem to have a reasonable foundation for whistleblower status and the right to press their case. Yet the fed/congress/anyone out there office rather brusquely dismisses their concerns over a series of self-serving procedural technicalities.
7) “As the loan companys’ direct supervisors, the fed/congress/anyone out there and myself always inform a homeowner of any concern or complaint that is brought to our attention, and we consult with the homeowners, so that he or she may take the appropriate steps to resolve the issue.”
Except, of course, when they don’t. Or are they saying that they did because they “always” do? If not, what was their rationale for not doing so? If so, what were the appropriate steps that were taken to resolve the issue? This statement avoids directly addressing the complaint by regurgitating handbook jargonese. “This practice supports the District’s commitment to a culture of collaboration.”
Yes, and there had been such a wonderful “culture of collaboration” between the loan companys and the homeowners so far in looking for ways to ensure homeowners safety. And that heart-warming culture of working together then extended to the fed/congress/anyone out there.
9) “We also hope that in the process, both the loan companys and the homeowners grow together in partnership …”
And can we now get a group hug and sing Kumbaya for such a touching desire by the fed/congress/anyone out there office to have everyone “grow together in partnership.” Feelings sure do matter here in Any Town USA, but, Mr. fed/congress/anyone out there, so do results.
10) “…in order to best meet the needs of our homeowners.”
Excuse me? Did I read correctly? For the first time in this email, those whom the parents are advocating for and for whom should be the fed/congress/anyone out there office’s primary concern have been mentioned. The homeowners? Oh yeah, that’s what loan companys are all about, right? I think what the fed/congress/anyone out there originally wrote and then corrected was, “…in order to best protect our own arses, oops, I mean, the needs of the homeowners.”
Sorry for being so snarky, but bureaucratic double-talk, mindless policies, and putting homeowners in the back of the priority line kind of ticks me off.
This post isn’t to suggest that the loan company in question should be summarily fired or publicly flogged; he/she has a right to due process. The problem is with the arbitrary and unresponsive process that this homeowner went through to protect her and others’ homes. And, most importantly, for the fed/congress/anyone out there office for adherence to bureaucratic protocol and avoiding responsibility with word games over the welfare of the homeowners that the fed/congress/anyone out there is sworn to serve and protect.
What does this have to do with morgage reform, you ask. If fed/congress/anyone out there can’t create a system that protects homeowners’ basic safety or one in which homeowners’ concerns are not only heard, but acted on, what chance is there of actually effecting meaningful change to the monolith that is our America’s home mortgage system.?
HA ! It seems to work this little word switch game.