A comprehensive list of "toxic" mortgage companies

In a previous post, I listed "toxic" mortgage companies that credit card companies likely use to justify interest rate hikes, account cancellation, and credit limit reduction. 

At the time of the post and statistical analysis based on frequency, few company letters explicitly cited a bad mortgage company as a reason for adverse changes to an account. But now, more and more customers who have mortgages with these toxic companies are receiving letters from their credit card companies informing them of adverse changes to their accounts because of a relationship with a bad mortgage company.  Some of the banks that our analysis revealed include Countrywide Mortgage, CitiCorp Mortgage, and GMAC Mortgage, but there was no definitive public blacklist until now --sort of. 

In addition to our analysis, there is another resource that can help determine if your mortgage company is in trouble.  A colleague recently sent me a thorough web site, www.ml-implode.com, which closely follows the mortgage industry, particularly those mortgage companies that have been hit hard by the spike in mortgage default rates.  In fact, the site has a detailed, chronological list of all mortgage companies that have failed since 2006. 

I strongly recommend that you check it out. 

Comments

[dormand]

You might want to protest to your elected officials and the BBB if you were one of the tens of thousands of people with immaculate credit and who planned to take advantage of perhaps the lowest mortgage rates for the next half century, only to have the rug pulled out from under you by Bank of American.

B of A's tactic of slashing the credit limits of tens of thousands of its top customs undermined their critical FICO scores, making refinancing not feasible.

Ron Lieber of the New York Times is seeking comments from those maligned by credit card companies.
rlieber@nytimes.com

Don't get mad; get even!!

dormand

[Debbie Berger]

I recently called American Express to ask for an increase in my credit limit on one of their cards that I have.( They were offering a 1.99% interest rate on balance transfers.) I have had an account with them for 20+ years. I pay off the cards every month. There have been no late payments. My FICO score is 784. They would not increase my credit limit because my mortgage is with a mortgage company or bank that has a high rate of customers who default on their loans or are somehow not credit worthy... like me I suppose. . I contacted a local TV station who will be airing their interview with me on 3-16. The reporter contacted AMX and was told (I gave her my AMX info) that my husband and I had a subprime loan. We do not ...and how would they know that??? I contacted the mortgage broker that we dealt with. He said definitely not. Our loan was fully documented with bank statements, pay stubs, and income tax filings. This past week someone from the Maryland Assembly contacted me and asked me to send the letter that AMX had sent me explaining their reason for declining a credit increase. The reporter told me to check your website. What I have learned infuriates me. I work very hard to be financially responsible and these idiot greedy corporations have not and want to punish the consumer.

[Craig Allen]

Does the list include mortgage servicing companies?

[Karen Beasley]

Great resource. Unfortunately, my mortgage company is on the "blacklist". Even though I am not in default and nowhere near that point, there's nothing I can do. This really sucks!