Christine Jackson’s three-bedroom wood-frame home in Indianapolis is in danger of foreclosure. It’s not because she can’t afford her mortgage, but because of a bank error, she said. Jackson is among thousands of homeowners from all walks of life who have complained that the major banks that service their mortgages have made frequent errors in calculating their loans. These errors include slapping unnecessary inspection fees onto accounts, misapplying payments in violation of Fannie Mae and Freddie Mac guidelines and “force-placing” expensive insurance on homes that are already insured.

Questions:

1. Summarize what happened to Jackson.
2. What is an escrow account and how are they suppose to work?
3. In November, the biggest banks and independent servicers agreed in a consent order with federal regulators to allow homeowners to do what?

Source:

Hallman, B. (2012). Foreclosure Lawyer Could Lose Her Home Because of Alleged Bank Error. The Huffington Post.com, January 6 (Retrievable online at http://www.huffingtonpost.com/2012/01/06/foreclosure_n_1189367.html?ref=business)