There's a 2009 law (Pub.L. 111-22, Helping Families Save Their Homes Act, sec. 404; I'd link but Tumblr won't let me) that requires mortgage servicers to notify the borrower when a mortgage is transferred. Doesn't that solve the problem of getting a foreclosure notice out of the blue from someone you've never heard of? asked by dwineman
Mostly. It doesn’t solve the problem of turning public records into private records—or give borrowers a quick answer on who owns their mortgage if they lose that letter.
The bottom line on this is that the mortgage industry doesn’t work the way it use to. That cat’s not going back into the bag anytime soon. I can accept that. But what to do about it is a tricky question. (If we let the lenders off the hook for some of this scofflaw stuff, do we create a moral hazard?)
