Consumer complaint received 2016-03-06
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account — 
Company: CARRINGTON MORTGAGE SERVICES, LLC (NY)

DEMAND FOR CFPB INTERVENTION ON ELIMINATION OF " ZOMBIE DEBT '' MAINTAINENCE ON CRA 'S!!! 
Attached are XXXX or several old mortgage debts that went into default many years ago, some may in fact be well over seven ( 7 ) years since they first went into default. If a full investigation was performed by the original procuring bank on any or all of these mortgages that are still on my credit bureaus, a determination can be made as to care of the property : 1 ) if the property is occupied, 2 ) if the property is an issue pertaining to urban blight, 3 ) or if the property has been seized by any servicing agency through a legitimate foreclosure process. Accordingly, I believe that the CFPB must without exception move quickly into the devastation being done to consumer 's credit on mortgage, credit card and student loan debts that simply are not collectible, and that the total responsibility on this abuse sits with the debt service/collection industry. In fiscal year XXXX, the Federal Trade Commission, the oversight federal agency of the Consumer Financial Protection Bureau, made a determination that the debt collection industry in relation to the application of the legal application of the Fair Credit Reporting Act and the Fair Debt Collection Practices Act is broken. The introduction of the " Consumer Reporting Fairness Act '' is a great step to improvement of that system. Now the FDIC is stepping with guidelines towards abandoned properties. There are several methods the FDIC would like to see happen to limit foreclosures. The FDIC finds that there are unlimited foreclosure processes that simply are not necessary, that workout arrangements can be made without the long and costly legal process, a process that eventually is paid for by the FDIC, and eventually the United States taxpayers. The FDIC has established a very specific criteria on how banks should approach the foreclosure market, otherwise known as the " Zombie Market ''. 
1 ) Obtain and use the most current market value information on the property and use current valuation information when making the decision to initiate, pursue or abandon the foreclosure process. 
2 ) Implement criteria for determining when their lien ( s ) should be released due to the financial considerations they may face due to stopping the foreclosure. In some cases, the institution may face litigation. 
3 ) Notify appropriate state or local government authorities such as tax authorities, courts, or code enforcement departments of their decision to abandon the foreclosure process, and they must comply with the applicable state and local laws. 
4 ) Notify the borrower ( s ) that they will no longer be pursuing foreclosure, whether or not the mortgage holder has released the lien, the borrower has the right to occupy the property until a sale or title transfer occurs, and that the borrower is responsible for the remaining balance on the mortgage loan and for maintaining the property. 
5 ) Use reasonable means to contact the borrower in order to provide the notice described above, particularly in cases where the borrower vacated the property because the foreclosure process was initiated.