The Mortgage Loan Processing Reform Act (MLPRA) is a proposed legislative act that was written as a means to create infrastructure to fix the millions of problematic mortgage loans in America that are being manipulated by a system that has proven to be vulnerable to fraudulent activity. Defaulting borrowers, and even banks are often unaware that the claim being made on their home could in fact be unlawful.
Our dignitaries conceived the MLPRA by indentifying the vulnerable aspects of mortgage processing and servicing, and as a piece of legislation it creates infrastructure which leaves no place for fraudulent or mistaken activity. According to US Equity Initiative, a home owner defense program, Mortgages become convoluted for these simple reasons:
- The Mortgage industry lacks the financial transparency needed to ensure every homeowner is treated fairly.
- Regulations placed on the transfer and delivery of mortgages (when banks buy and sell your promissory note) cannot be enforced due to lack of data tracking the purchase and sale of promissory notes between banks.
- No matter how un-organized the systems that track mortgages in America are or are becoming, no bank wants to admit that they don’t know that status of a mortgage and in some cases have to convolute data to appear compliant with state and federal regulations
- Banks are lacking incentives for peaceful arbitration with home owners who have defaulted, and instead resort to methods such as dual tracking. (Dual tracking is when banks say they are helping a homeowner prevent foreclosure with loan modifications or other methods while they are secretly foreclosing behind the homeowners back.)
The MLPRA and its amendments will be available online throughout the acts sponsorship, ratification, and amendment process. The Dignitaries have promised citizens a thorough act that protects homeowners from being vulnerable to fraudulent and deceptive mortgage banking practices, and have called for the following policy changes:
- The end of the privatization of the transfer of mortgages as a security instrument and the dismemberment of the Mortgage Electronic Registration System (MERS)
- The Municipalization of the transfer of Mortgages, don’t by the county clerk’s office
- The generation of analytical loan metric data that includes the mean, median, and mode of loans given in perspective regions by demographic.
- The establishment of government mandated arbitration between defaulted homeowners and mortgage lenders
- Federal enforcement of mortgage lending regulations
- Clear legal definition the working parts and parties within a mortgage, and the eligible claims a party may to a particular mortgage
Our Dignitaries thank you for signing MLPRA and sharing it with your friends. With your help we can ensure the longevity of American home ownership