Legal Analysts

Showing posts with label Mortgage. Show all posts
Showing posts with label Mortgage. Show all posts

Wednesday, November 10, 2021

Foreclosure Alert - Lenders Required to Provide Single Point of Contact to Borrowers

Starting January 2, 2022, borrowers negotiating a loan modification have a right to a single point of contact at their lender.

On November 3, 2021, Governor Hochul signed BillS671 into law, which amends Section 6-o to the banking law, and starting on January 3, 2022, upon written request by the borrower, lenders will be required to provide borrowers with a single point of contact who must provide accurate account and other information related to the foreclosure process and loss mitigation efforts.

This is huge because many mortgage modifications are functionally blocked by a lack of access to lenders rather than based upon qualification criteria. As the foreclosure moratorium is coming to an end on January 15, 2022 and a wave of foreclosures are about to hit New York State, this is a needed law for borrowers, and their attorneys, to settle cases.

Friday, July 02, 2021

New Foreclosure Rule from CFPB

On June 28, 2021, the Consumer Financial Protection Bureau (CFPB) issued a final rule amending Regulation X of the Real Estate Settlement Procedures Act (RESPA) which aims to assist mortgage borrowers with a COVID-19 related hardship in seeking loss mitigation options and delaying foreclosure proceedings to encourage resolution of delinquencies through loan modification.
This Rule is going to make it harder for lenders to foreclose and cause more homeowners to enter a modification thereby avoiding foreclosure.

The Rule has 5 key parts:

  1. It imposes additional requirements before a mortgage servicer may make the first notice or filing required to commence a foreclosure proceeding due to default.
    • However, this requirement is only applicable if:
      • The borrower’s mortgage payment became more than 120 days delinquent on or after March 1, 2020; and
      • The statute of limitations applicable to the potential foreclosure action expires on or after January 1, 2022.
    • If the rule is applicable, mortgage servicers may commence a foreclosure only if:
      • The borrower has submitted a completed loss mitigation application and either:
        • The borrower is ineligible for any loss mitigation options and the borrowers’ appeal, if applicable, has been denied;
        • The borrower rejects all available options; or
        • The borrower fails to perform terms of an agreement on a loss mitigation option;
      • The subject property is abandoned as defined, under state or municipal law; or
      • The servicer has conducted specified outreach and the borrower is unresponsive to such outreach.
    • This requirement expire on January 1, 2022, and thus, mortgage servicers shall be free to commence foreclosure proceedings after such date.
  2. It provides specific limitations for loan modifications, including:
    • A modification may not cause an increase in mortgage principal and interest payments, and may not extend the life of the loan by more than 480 months from the date of the loan modification;
    • A loan modification may not charge or accrue interest on deferred payments, which are not due until the mortgage loan is refinanced, the property is sold, the loan modification matures, or the mortgage insurance is terminated (if the loan is insured by FHA);
    • Modification MUST be made available to borrowers experiencing COVID-19 related hardships;
    • Borrower’s acceptance of a permanent modification, after a trial modification plan, ends any preexisting delinquency on the mortgage; and
    • No fees may be charged in connection with a modification and all existing late charges, penalties, stop payment fees, or similar charges incurred on or after March 1, 2020, shall be waived.
  3. Imposes additional live contact early intervention obligations on servicers to discuss specific COVID-19 related relief:
    • Applies to:
      • A borrower who is not in a forbearance program; or
      • A borrower who is near the end of a forbearance program based on a COVID-19 related hardship.
      • These requirements expire on October 1, 2022.
  4. Requires the servicer to contact the borrower, within 30 days before the end of the forbearance period, if the borrower remains delinquent, and inquire if the borrower wants to complete a loss mitigation application.
  5. Defines COVID-19-related hardship to mean “a financial hardship due, directly or indirectly, to the national emergency for the COVID-19 pandemic declared in Proclamation 9994 on March 13, 2020 (beginning on March 1, 2020) and continued on February 24, 2021, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)).”

The Rule does not take effect until August 31, 2021. That being said, borrowers should be aware that the CFPB foreclosure moratorium expired on June 30, 2021 and the CDC foreclosure moratoriums for FHA, HUD, VA, Fannie Mae, and Freddie Mac loans ends on July 31, 2021 and to contact their mortgage servicers as soon as possible to inquire about available loss mitigation options.

Wednesday, June 30, 2021

New Foreclosure Compliance Rules in Town of Southampton

The Town of Southampton has issued a new compliance protocol (Town Code at Chapter 262) for Foreclosure Plaintiffs in response to an increase in crime and deterioration in property appearance. 

The new law sets forth a Registration Scheme with new maintenance obligations:

  • Homes are to kept free and clear of weeds, overgrown brush, trash, dead vegetation, debris, etc.
  • No graffiti
  • Requirements for watering, irrigation, cutting and mowing of lawn
  • Pools and spas to be clear of pollutants and debris
Properties subject to foreclosure must be properly secured in order to avoid unauthorized access:

  • Locked windows, doors, and gates
  • Repairs to broken windows, doors, and gates
  • Designation of a property manager to maintain and perform necessary work

Penalties & Fines include:

  • $1,000 fine or up to 15 days in jail (or both), for each violation
  • $1,000-$5,000 fine or up to 15 days in jail (or both) for a second or subsequent violation
  • $150 for first day of violation, $250 for second day of violation, $500 for third day of violation and continuing.
Will the new registration requirements really increase the value of neighborhoods and decrease crime and deterioration? 

Thursday, June 03, 2021

Co-op Loans At-Risk Based on Legislation that Passed the US House

A law that passed the House in May and is before the Senate (The Comprehensive Debt Collection Improvement Act or “CDCIA”could force lenders to slam the breaks on issuing mortgages to co-op purchasers.

This law reverses a 2019 decision from the US Supreme Court, Obduskey V. McCarthy, and would cause the Fair Debt Collection Practices Act (FDCPA) to apply to businesses engaged in non-judicial foreclosures, which applies to co-op mortgage loans.

In other words, the CDCIA would hamstring co-op lenders' ability to utilize third-parties to collect their loans (e.g., the law limits the number of times a debtor may be reached, it requires that contact be ceased when the debtor so requests, it creates tons of exposure to damages and attorneys' fees, etc.). It would also suppress important information from a credit report, such as forbidding credit scoring models from using medical debt as a negative factor.

As you can certainly deduce, if the CDCIA passes the Senate and is signed by the President, lenders will likely have stricter qualification terms and may even raise rates on co-op mortgage loans that qualify.

Are the protections in the CDCIA worth the law's chilling effect on co-op loans? Should the Senate change the law? Should it just vote it down?

Do you think the CDCIA will lead to fewer co-op transactions?

Wednesday, February 10, 2021

You Know That Your Mortgage Payoff # Is Wrong - What Should You Do?

Here is the scenario - You are trying to sell a property and you order a payoff from your mortgage company, but that payoff quote comes in much higher than you believe that it should. 

You are in a real bind. 

You need to sell, but you don't want to overpay. What should you do?

This is particularly problematic where you are in default on your mortgage and the lender has started tacking on exorbitant penalties and attorneys' fees.

The answer is that you better protest the payoff, in writing, while requesting an itemization and then, you should pay it anyway. 

If you do, you can then file a motion for an accounting and ask the court to compute the appropriate fees, charges, expenses, and other payments due under the mortgage. 

If you don't, your motion to the court for an accounting will probably be denied in light of the voluntary payment doctrine, equitable estoppel, and waiver bar the accounting.

Again, protest and pay is the strategy based upon the appellate court decision in US Bank v. Cordero

Are you selling a house in foreclosure? If so, pay attention. 

Thursday, August 06, 2020

Mortgage Lender Warning - No Consideration Deed

The Appellate Division recently reminded us of the importance of investigating a no consideration deed prior to issuing a mortgage to the titleholder. 

In 2386 Hempstead, Inc. v. 182 St., Inc., the Appellate Division held that the no consideration deed constituted notice of a potential previous fraud in the title spurring a duty to make inquiry concerning the circumstances of the transaction at issue. 

By failing to make such inquiry, the lender lost its status as a bona fide encumbrancer for value and therefore, jeopardized its status as a prior lienholder, who gets paid first in a foreclosure action. 

Wednesday, March 25, 2020

NYS 90-Day Mortgage Relief Plan – DFS Regulation Issued

On March 24, 2020, the details of NYS’ COVID-19 mortgage help came to light.

Specifically, the New York State Department of Financial Services promulgated 3 NYCRR 119 in response to Governor Cuomo’s Executive Order 202.9.

Here is a Q&A about the details

What is the COVID-19 Relief Program?
The COVID-19 Relief Program requires DFS regulated institutions to make applications for a 90-day forbearance of any payment due on a residential mortgage of New York Property to individuals residing in New York and who demonstrates financial hardship as a result of the COVID-19 pandemic.

How long is the Program effective?
The Program shall be in effect until June 19, 2020, but may be extended if necessary.

Are mortgage payments waived under the Program?
The Program does not expressly require institutions to waive mortgage payments.

When can a borrower apply for the Program?
On or before April 3, 2020, regulated institutions are required to e-mail, publish on their website, mass mail, or broadly communicate to customers how to apply for COVID-19 relief and provide their contact information.

Which institutions are covered under the Program?
DFS-regulated institutions are covered under the Program. They are New York regulated banking organizations covered by the New York Banking Law and all New York regulated mortgage servicers regulated by DFS. This means that the program does not cover National Association lenders (federally charted banks). The Program does not apply to mortgage loans made, insured, or securitized by the United States, Government Sponsored Enterprise, Federal Home Loan Bank, and lenders, issuers, servicers or trustees of such loans, as well as, servicers for the Government National Mortgage Associations.

Does the Program cover commercial loans?
The Program does not apply to any commercial mortgage or other loans not described in 3 NYCRR 119.

Aside from a 90-day forbearance, is there additional relief available under the Program?
From today until June 19, 2020, or until extended, lenders will provide the following relief to individuals who experience financial hardship from COVID-19:
  • Waive fees for use of automated teller machines (ATMs);
  • Waive overdraft fees; and
  • Waive credit card late payment fees.
Institutions are not limited to offering the above types of relief and are encouraged to take additional reasonable and prudent actions to COVID-19 affected individuals.

Who is qualified to receive COVID-19 relief?
Regulated institutions must develop their own clear, easy to understand, and reasonably tailored criteria for assessing qualified individuals. The qualifications and process for applying for relief should be published by institutions on or before April 3, 2020.

How are applications processed under the Program?
Regulated institutions are required to develop and implement procedures for expedited processing where they must process and respond to requests immediately and no later than 10 days of receipt of all information reasonably required to process the application. All determinations must be communicated to the applicant in writing and must explain the reasons if the application was denied and a statement that the applicant may file a complaint with DFS if he believes the application was wrongly denied.

Is the Program ready to launch?
More clarity concerning the Program is expected once regulated institutions have published their process for applying for relief. Individuals who are seeking mortgage assistance as a result of the COVID-19 pandemic are encouraged retain counsel as soon as possible to negotiate with their mortgage lenders or servicers. Don’t assume you qualify and get all terms in writing before you stop making mortgage payments.

Saturday, March 21, 2020

NYS Mortgage Relief Plans Becomes Clearer, BUT Not Enough

On March 21, 2020, the Governor issued NYS Executive Order 202.9, which provides, in pertinent part, as follows:
Subdivision two of Section 39 of the Banking Law is hereby modified to provide that it shall be deemed an unsafe and unsound business practice if, in response to the COVID-19 pandemic, any bank which is subject to the jurisdiction of the Department shall not grant a forbearance to any person or business who has a financial hardship as a result of the COVID-19 pandemic for a period of ninety days... The Superintendent of the Department of Financial Services shall ensure under reasonable and prudent circumstances that any licensed or regulated entities provide to any consumer in the State of New York an opportunity for a forbearance of payments for a mortgage for any person or entity facing a financial hardship due to the COVID-19 pandemic. The Superintendent shall promulgate emergency regulations to require that the application for such forbearance be made widely available for consumers, and such application shall be granted in all reasonable and prudent circumstances solely for the period of such emergency. 
While a cursory reading shows that mortgage help is on the way, many uncertainties remain, including:

  • What does subject to the jurisdiction of the Department mean in the Order? Specifically, there are two charting systems for banks; federal and state. The Federal Office of the Comptroller of the Currency controls federally chartered banks pursuant to the National Bank Act. Generally, you can tell that a bank is federally chartered because it has the initials N.A. after its name. As a result, NYS doesn't have jurisdiction over federally chartered banks so how does this work if you have a loan through a federal bank like many NYS residents do?
  • When is the Superintendent promulgating emergency regulations and how are consumers going to understand those regulations if attorneys at law were not labeled as essential services under the quarantine and therefore are becoming less available by the minute? Yes, some law firms are open and working remotely, but for how long with many clerks' offices closed and all court deadlines tolled (yesterday's Executive Order 202.8), including "any specific time limit for the commencement, filing, or service of any legal action, notice, motion, or other process or proceeding."
  • By adding the words business & entity, is it intended that this applies to both residential and commercial property?
  • Is there a limit on the amount of the mortgage for this to be applicable?
  • After the forbearance is over, what happens to the money deferred (i.e., back end balloon, recapitalized, ballooned immediately, something else)?
  • Will the Superintendent of DFS be answering these questions or someone else; plus, will the answers be part of a regulation or just advisory? 
Please don't misunderstand this post. We 100% support the quarantine and also support the forbearance. Instead, this blog is designed to prevent further hardship to the vulnerable who take a leap of faith on their mortgage without first researching facts.

Get facts before you act and the facts aren't out yet - so, CONTINUE PAYING YOUR MORTGAGE for now.

Friday, March 20, 2020

NYS, FHA, Fannie Mae and Freddie Mac Mortgage Relief Plans Do Not Automatically Waive Mortgage Payments

On March 19, 2020, Governor Cuomo announced a 90-day Mortgage Relief Plan ("Plan") for New York State mortgage borrowers. New York State mortgage servicers are directed to provide 90-day mortgage relief to borrowers affected by the novel coronavirus (COVID-19). The Plan aims to provide the following relief:
  • Waiving mortgage payments based on financial hardship;
  • No negative reporting to credit bureaus;
  • Grace period for loan modification;
  • No late payment fees or online payment fees; and
  • Postponing or suspending foreclosures.
While the Plan does bring immediate relief to homeowners affected by the coronavirus (COVID-19), the Plan does not simply waive mortgage payments due in the next 90 days. In his press conference, Governor Cuomo clarified, "We're not exempting people from the mortgage payments. We're just adjusting the mortgage to include those payments on the back end."

Currently, specific procedures on how to apply and/or how to qualify under the Plan is yet to be published, so stay tuned. Until then, borrowers should retain counsel to apply and negotiate with their mortgage lender or servicer for a forbearance plan to prevent incurring interest and fees for missed payments.

Mortgage relief plans are also in place for FHA, Fannie Mae, and Freddie Mac mortgages. Similar to New York State's Plan, however, borrowers should be aware that the mortgage payments are not automatically waived nor placed on hold and they should retain counsel to apply and negotiate with their mortgage servicer immediately.

Tuesday, February 18, 2020

Why do banks care about your flood insurance?

Citibank recently paid $17,998,510.00 pursuant to a consent order for failing to place floord "insurance in a timely manner on residential Designated Loans and engaged in a pattern or practice of violations of the Flood Act and its implementing regulations, including 12 C.F.R. § 22.7(a)".

That's almost eighteen million reasons to care.

Saturday, December 07, 2019

New Law: Reverse Mortgages Regulated

On December 6, 2019, A5626 was signed into law to regulate reverse mortgages. The new law takes effect on March 5, 2020. 

A reverse mortgage means "[a] loan which is secured by a first mortgage on real property improved by a one- to four-family residence or condominium that is the residence of the mortgagor(s) the proceeds of which are advanced to the mortgagor(s) during the term of the loan in equal installments, in advances through a line of credit or otherwise, in lump sums, or through a combination thereof."

The new law has the following features at new Real Property Law section 280-b:

  1. Marketing & offering of reverse mortgage loans are regulated to avoid unfair or deceptive practices;
  2. Consumer protection materials are required to be included in marketing such loans & the Superintendent is authorized to promulgate rules & regulations to protect consumers;
  3. Loans that pay taxes, mortgage insurance, homeowners insurance, or other property obligations must provide the borrower with periodic account statements & a required warning notice;
  4. When the escrowed money for payments of obligations are depleted to 10% or less, the borrower will get a telephone & mailed notice about the borrowers obligations; 
  5. Restricts lenders from paying borrowers obligations on the property (taxes, mortgage insurance, homeowners insurance, etc.) as advance payments & only permits lenders to pay when there are arrears;
  6. Restricts foreclosures based on primary residence restrictions; 
  7. Requires both the lender & the borrower to be represented by an attorney at the closing of the loan; 
  8. Borrowers who are injured from a violation by a lender have a private right of action for treble damages & reasonable attorneys' fees; & 
  9. Violating this statute by a lender works a complete defense for a borrower in a foreclosure action.

Wednesday, July 03, 2019

Housing Discrimination and Facebook

On Monday, Governor Cuomo called on the Department of Financial Services to investigate reports that state-regulated advertisers are using Facebook, Inc.'s advertising platform to discriminate against protected classes.

Real estate brokers and mortgage bankers are state regulated advertisers - you are warned.

Get into compliance today before it is too late - call Lieb Compliance at 646.216.8038 for an audit, policies and trainings.

Wednesday, June 19, 2019

Loan Officer Compliance Trainings Needed for HMDA Data

Loan Officers (LOs) frequently have issues collecting and entering applicant information on their electronic systems, which results in a denial of the loan. These issues occur when customers don't want to provide the information. At all costs, LOs seek to avoid a loan denial. As a result, LOs often develop strategies to fudge information, as a workaround, so that they can close their loans. These workarounds are often spearheaded by management at structured LO meetings. The LOs and managers know that without fudging the data, their system will hard stop the file and kill their loans. This is a non-starter for one with a broker's mindset.

Lenders - the Consumer Financial Protection Burea (CFPB) recently gave a $1.75 million reminder as to why lenders cannot fudge the data and need a compliance plan, in place, to avoid their LOs and managers from fudging the data. This $1.75 million civil penalty occurred by way of settlement In the Matter of Freedom Mortgage Corporation case.

The Freedom Mortgage Corporation case concerned LOs fudging information required by HMDA and Regulation C where such LOs selected non-Hispanic white when consumers refused to provide their race, ethnicity, and sex.

Interestingly, a compliance plan would have avoided this civil penalty because the applicable regulation permits lenders to report that the applicant did not provide the information and the loan can close. Had there been a compliance plan in place, Freedom Mortgage Corporation would have $1.75 million more today. In fact, CFPB ordered the lender to "develop, implement, and maintain policies, procedures, and internal controls to ensure compliance with data collection, recording, and reporting requirements set forth in HMDA and Regulation C." Additionally, trainings were required by CFPB.

Lenders - you need a compliance company to create policies and train your LOs before you get hit with a case by CFPB.

Thursday, September 08, 2016

New Fannie Mae/Freddie Mac Refinance Program for 2017

On August 25, 2016, the Federal Housing Finance Agency (FHFA) announced a new refinance program by Fannie Mae and Freddie Mac that will be implemented in October 2017 for borrowers who are underwater on their mortgages.

This new program will replace the current Home Affordable Refinance Program (HARP), which was set to expire on December 31, 2016. To avoid a gap of almost one year between the commencement of the new program and the expiration of HARP, the FHFA, which oversees both Fannie Mae and Freddie Mac, has also extended HARP through September 30, 2017.

HARP was launched in 2009 to assist homeowners who have high loan-to-value ratios to obtain refinanced loans with better rates. For clarity, HARP is different than the Home Affordable Modification Program (HAMP), which is more generally familiar to our readership. HAMP was designed to assist homeowners in obtaining mortgage modifications on their existing loans whereas HARP is for homeowners seeking to refinance their loans into an entirely new mortgage product. Moreover, HAMP is for loans that are already in default or at risk of default whereas HARP is only for homeowners who are current on their loans.

A borrower is eligible for HARP through September 30, 2017 if:
  1.  There are no missed mortgage payments within the last six months;
  2. There is not more than one missed mortgage payment within the last twelve months;
  3. The house is a primary residence, 1-unit second home, or a 1- to 4- unit investment property;
  4. It is a Fannie Mae or Freddie Mac-owned loan;
  5. The loan was made on or before May 31, 2009; and
  6. The loan-to-value is greater than 80%.
The new refinance program launching in October 2017 will be more “targeted” than HARP, but details are not yet fully available. The following are the currently known eligibility requirements:
  1. There are no missed mortgage payments within the last six months;
  2. There is not more than one missed mortgage payment within the last twelve months;
  3. The borrower must have a source of income;
  4.  It is a Fannie Mae or Freddie Mac-owned loan; and
  5. The borrower must receive a benefit, such as reduced monthly mortgage payments.
Of greatest import, unlike the expiring HARP, the new program will extend eligibility to loans made after May 2009 and borrowers will be able to refinance under the new program more than one time. Though more than 3.4 million homeowners have already refinanced under HARP, there are still hundreds of thousands of eligible homeowners who are still in need of assistance. This new program will continue to assist homeowners who are suffering from the housing crisis and open up opportunities to refinance for new categories of homeowners.

Unfortunately, no new announcements have been made to extend HAMP through 2017 even though there remains many properties currently in foreclosure and many millions more properties at risk for default. HAMP is set to expire on December 31, 2016. 

Tuesday, May 26, 2015

The Making Home Affordable Program (MHA) has been formally extended 1 year

The Making Home Affordable Program (MHA), has been formally extended 1 year, through December 31, 2016, by Supplemental Directive 15-04. The program has been widely successful in providing affordable alternatives to foreclosure for millions of homeowners nationwide, and the extension through 2016 will provide relief to the millions more who will be in danger of falling behind on their mortgages in the next year.

This extension applies only to mortgages that are not owned or guaranteed by Fannie Mae or Freddie Mac and for applications that are submitted to the Lender on or before December 31, 2016. Though it is not necessary to have a decision on the application for a loan modification, short sale, or deed-in-lieu by the end of 2016 to be eligible under the MHA program, the transaction must close on or before September 30, 2017 if the borrower would like to receive incentive compensation, such as relocation assistance, payments for successfully completing a short sale or deed-in-lieu, or payments for making timely loan modification payments. Since the amount of relocation assistance that Lenders must offer has increased from $3,000 to $10,000 for all HAFA (short sales & deeds-in-lieu) transactions closing on or after February 1, 2015, borrowers must be mindful of the deadlines so that they may be eligible to receive this increased amount to assist them in moving costs.

This Directive also amends the MHA guidebook to allow servicers to establish a cap on the amount that they will pay to release the second mortgage liens, as long as the cap is not less than $12,000. It establishes a floor amount that borrowers may receive from their primary mortgage lenders to assist them in closing on their short sales or deeds-in-lieu.

These amendments ensure that borrowers will continue to have access to adequate relief through the MHA program.

Wednesday, April 22, 2015

Consumer Step-by-Step Guide for the Mortgage Purchase Process

The Federal Government’s Consumer Financial Protection Bureau (CFPB) recently released a Home Loan Toolkit, a step-by-step guide through the mortgage purchase process, for consumer use. This is a must use tool for real estate professionals to create realistic expectations for their clients and customers. 

This toolkit helps consumers to:

  1. Calculate affordable monthly mortgage payments;
  2. Understand the importance of credit scores to obtaining better mortgages;
  3. Pick their mortgage type;
  4. Choose the best down payment amount;
  5. Shop with different lenders;
  6. Understand and know about issues that may arise;
  7. Choose a mortgage closing agent; and
  8. Understand the overall closing process.

This Home Loan Toolkit has fillable text fields, buttons, and list boxes, allowing consumers to update the toolkit as they work through the process. It is designed to be much easier and more accessible version of the existing Settlement Cost Booklet that is currently provided to consumers and should be used in connection with the new (and simpler) Loan Estimate and Closing Disclosure forms that will be effective on August 1, 2015.

Though creditors are required to provide the toolkit to all potential homebuyers, the CFPB encourages that real estate agents understand and provide this toolkit to their clients as well. The more informed the parties, the smoother the real estate transaction will go.

Tuesday, December 09, 2014

Help is Here to Prevent Mortgage Modification Scams

Do you feel that you are a victim of a mortgage modification scam?

According to the Attorney General: "Thousands of New Yorkers are scammed by companies who take advantage of homeowners in distress." 

To combat these scams, the Attorney General established, which offers "free, qualified mortgage assistance relief services from a network of trusted partners operating across the state under the New York Attorney General Homeowner Protection Program (HOPP)." 

The new site offers both English and Espanol.

The site also enables one to report a scam in a loan modification.

So, protect yourself if you need a modification. Remember, attorneys can provide valuable assistance in defending a foreclosure, but be careful of "attorneys who bring baseless lawsuits just to charge consumers a fee". Rarely, if ever, can attorney get your mortgage removed from your house. Instead, attorneys can assist in modifications, short sales and deeds-in-lieu of foreclosure incident to defending a lender's lawsuit.

Monday, June 16, 2014

Bank of America is Under Scrutiny

Bank of America is under scrutiny by the United States Department of Justice for its unscrupulous financial practices. In order to prevent another economic collapse, the federal government believes that Bank of America, along with other large financial institutions, must be penalized for their actions.

Allegedly having handled shoddy and fraudulent loans, Bank of America is in negotiations to settle civil probes for 12 billion dollars. The amount of this settlement may go up, and if a deal is reached, at least $5 billion will go towards consumer relief by way of loan modifications with principal and monthly payment reductions and other forms of help for defaulted loans. This potential settlement, of course, is great news for the struggling homeowner and represents an enormous fine against the financial behemoth of Bank of America.

If a deal cannot be reached, the Justice Department will most likely proceed with a lawsuit against Bank of America for its fraudulent practices.

Please go here if you like to read more.