Tag: servicing

Qualified Written Requests Under the New Mortgage Servicing Rules, Part Two: Information Requests
By February 23, 2014 0 Comments Read More →

Qualified Written Requests Under the New Mortgage Servicing Rules, Part Two: Information Requests

In Part One, we reviewed the essential provisions of the new mortgage servicing rules for resolving errors. In Part Two, we will look at the requirements for requesting information about a loan from the servicer. The new rules became effective January 10, 2014. Even if the borrower is not asserting an error, a borrower is […]

Posted in: Features
Qualified Written Requests Under the New Mortgage Servicing Rules, Part One: Error Resolutions
By February 23, 2014 1 Comments Read More →

Qualified Written Requests Under the New Mortgage Servicing Rules, Part One: Error Resolutions

New rules issued by the Consumer Financial Protection Bureau went into effect on January 10, 2014. Those rules include detailed guidelines for submitting and responding to qualified written requests under RESPA. There are two types of qualified written requests: notices of a servicing error and requests for information. The rules vary for each type of […]

Posted in: Features
Loss Mitigation Under the New Mortgage Servicing Rules
By February 21, 2014 1 Comments Read More →

Loss Mitigation Under the New Mortgage Servicing Rules

On January 10, 2014, new mortgage servicing rules promulgated by the Consumer Financial Protection Bureau went into effect. Among other things, the new rules include detailed requirements for loss mitigation. If a servicer violates the loss mitigation provisions, a borrower may sue for damages, costs, and attorney fees. Whatever their shortcomings, the rules are the […]

Posted in: Features
By January 31, 2014 0 Comments Read More →

CFPB Update on Mortgage Servicing Rules: February 10 in Tigard

The Consumer Law Section of the Oregon State Bar is sponsoring a half-day CLE for attorneys, housing counselors, and foreclosure mediators who want to learn about the new federal mortgage servicing rules that went into effect on January 10. According to the CFPB, the rules “establish new, strong protections for struggling homeowners, including those facing […]

Posted in: News and Events
By November 22, 2013 0 Comments Read More →

Two Banks Partner With Oregon Company to Offer Reemployment Program for Delinquent Homeowners

M&T Bank recently joined Fifth Third Bank in offering a reemployment program for homeowners who are struggling to pay their mortgages due to job loss. The program is operated by NextJob, Inc., a nationwide reemployment company headquartered in Bend, Oregon. Early this year, Fifth Third announced that it was partnering with NextJob to provide unemployed […]

Posted in: News and Events
By November 17, 2013 2 Comments Read More →

Nationstar Issues Public Apology to Elderly Oregon Couple For Botched Modification

An Oregon couple has received a public apology from Nationstar, one of the nation’s largest mortgage loan servicers, for botching their loan modification. Nationstar approved Michael and Judith McElderly for a trial period plan in January 2013. Nationstar promised the McElderlys that it would permanently modify their loan if they made three trial payments of […]

Posted in: News and Events
Grover v. HomeStreet Bank: Lender Lockout Is Trespass To Land For Which Emotional Distress Damages May Be Recoverable
By November 12, 2013 0 Comments Read More →

Grover v. HomeStreet Bank: Lender Lockout Is Trespass To Land For Which Emotional Distress Damages May Be Recoverable

In Grover v. HomeStreet Bank, et al., the chapter 13 bankruptcy debtor survived a motion to dismiss an adversary proceeding against the lender (Oregon Housing and Community Services) and loan servicer (HomeStreet Bank) to recover damages from an illegal lockout. After commencing a nonjudicial foreclosure, the lender’s agents allegedly entered plaintiff’s property and locked her […]

Posted in: Cases
Servicing Transfers and Pending Loan Modifications: What To Do When Your Mod Gets Lost in the Shuffle
By July 22, 2013 3 Comments Read More →

Servicing Transfers and Pending Loan Modifications: What To Do When Your Mod Gets Lost in the Shuffle

In the past year, there has been a massive sell-off of mortgage servicing rights (MSRs), especially for nonperforming loans. In some cases, the transferor retains ownership of the MSRs and merely transfers subservicing to a new servicer. For example, in January 2013, Bank of America and Fannie Mae reached an agreement to transfer servicing for […]

Posted in: Features
Schlegel v. Wells Fargo: Servicer’s Oops Defense Fails, ECOA Claim Goes Forward
By July 21, 2013 0 Comments Read More →

Schlegel v. Wells Fargo: Servicer’s Oops Defense Fails, ECOA Claim Goes Forward

Does a recent Ninth Circuit opinion suggest a new line of attack for victims of predatory mortgage loan servicing? In Schlegel v. Wells Fargo Bank, the Ninth Circuit held that a servicer’s failure to give an adverse action notice after revoking a loan modification gives rise to a claim under the Equal Credit Opportunity Act […]

Posted in: Cases
By July 8, 2013 4 Comments Read More →

Did You Know? The Difference Between Principal Forbearance and Principal Forgiveness

The goal in modifying mortgage loans is to bring the borrower current while reducing the total monthly housing cost (principal, interest, taxes, insurance and HOA dues) to a target percentage of gross monthly income (usually 31%). The servicer achieves this payment reduction by serially modifying specific loan terms, especially the interest rate and the length […]