'Ex-Chase Employee Was Told 'We're in the Foreclosure Business, not the Modification Business'

from nationalmortgageprofessional..........

"... But then I met Jared, an ex-employee of Chase’s servicing company. He had worked in the foreclosure department for 18 months, left on very good terms, and agreed to an interview.

Jared explained that it was his responsibility to make sure foreclosures were being completed in compliance with Fannie’s guidelines, and to document everything that went on with each file. “Everything the homeowner sends in has to be scanned, copied and attached to their file,” he said.

So, how come servicers are always losing paperwork submitted by borrowers, I asked? He said that didn’t happen at Chase. “We never lost anything, it’s was a big part of how you’d be awarded the maximum bonus of $12,000 a year.”

I must be thinking about Wells Fargo, I replied under my breath.
“Half of the bonus was tied to documenting your files in case investors wanted to audit them,” and the other half was based on how fast you’d foreclosure… at Chase they say that the ‘perfect foreclosure’ is 120 days,” he said.

Well, that must have been something to aspire to, I replied. I mean, not every foreclosure can hope to be “perfect,” right? He nodded in agreement, not quite sure of my meaning.
Jared recalled what his boss had told him during his first week on the job: “We’re in the foreclosure business, not the modification business.”

“Foreclosures are a no lose proposition for servicers,” Jared explained. “The servicer gets paid more to service a delinquent loan, and they get to tack on extra charges. If the borrower reinstates, which is rare, then the borrower pays the extra fees. If the borrower loses the house, then the investor pays them. Either way, the servicer gets their money.” .............LINK