Owners of Bank and Fannie Mae Foreclosure Homes Play Part in Crisis

by Simon Lindsay on Foreclosure Crisis

Jan Miller, Chairman of the Oklahoma Bankers Association, has stated that the problem regarding bank, government and Fannie Mae foreclosure homes is not just about lenders, but also about homeowners. He reportedly asserted that to imply that the problem is brought about by lenders alone will be nonsense.

Miller has argued that the basic reason for the presence of bank foreclosures in Oklahoma City and in the rest of the state and the country is homeowners failing to pay their monthly mortgage obligations. He also allegedly claimed that the decision of U.S. states to launch a nationwide probe on lenders' practices was prompted by politics.

Oklahoma Attorney General Drew Edmondson has recently announced that the state will be joining the rest of the AGs in the U.S. to examine the foreclosure processing methods of lenders. According to Edmondson, the probe will look into whether foreclosed homes in Oklahoma and in the rest of the U.S. were processed without the signers having any knowledge of the cases' facts.

The nationwide investigation was initiated following complaints that lenders are filing faulty foreclosure paperwork or signing off documents without reading them. The allegations have prompted a percentage of the general public to blame lenders for the huge supplies of bank foreclosures and Fannie Mae foreclosure homes that have dragged the values of properties in the country.

However, Miller has stated that although there may be cases when properties in foreclosed home sales were processed without a thorough review of the documents, the housing crisis must not be blamed on this issue alone. He also stated that the proposal to implement a countrywide moratorium will have a detrimental impact on the nation's economy.

The association chairman has asserted that if all foreclosures are suspended, all borrowers will be negatively affected, including those who have been diligent in paying their mortgages. Miller's comment came after a handful of lenders have voluntarily suspended foreclosures in certain areas of the U.S. to check on possible problems with processing.

The high number of bank foreclosures, government foreclosed properties and Fannie Mae foreclosure homes has opened the debate on whether the crisis is the fault of lenders or borrowers. Miller, along with other market observers, agreed that each played a role.