Others who have purchased homes in foreclosure have had their closings delayed while documents are reviewed. Consumers have already fallen victim to foreclosure rescue scams as charlatans posing as mortgage counselors claimed to be able to obtain mortgage modifications for a fee. In light of new stories of mortgage abuse, new incarnations of those scams are sure to proliferate.
Risk Management and Disclosure The intended or unintended consequences of the opaqueness that comes with complexity raise serious issues for financial reporting and corporate governance. Effective governance requires investors and creditors to hold firms accountable for their decisions. But they must first have the information necessary to understand the risks that the firm is bearing and those it has transferred to others.