“The new guys are quickly gaining on the traditional players,” said Ginnie president Ted Tozer. “Some have grown from zero to $5 billion to $10 billion overnight. We’re concerned about their infrastructure and capital.”
Chuck Klein, managing partner of Mortgage Banking Solutions, is engaged in roughly 12 transactions. “I think at least six of those will close,” he said.
The New York AG has secured a temporary restraining order barring the loan mod companies from collecting advance fees. The state's top cop also froze their bank accounts.