Search Results: test Default Servicing

CFPB Releases Assessment Reports Analyzing the Ability to Repay and RESPA Servicing Rules

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On January 10, 2019, the CFPB issued a press release regarding two recently-released reports, which analyze the efficacy of the Ability to Repay Rule (ATR), and the RESPA Servicing Rule (Servicing Rule).  The assessment reports analyze data collected since the rules were enacted in January 2013, and are designed to assess whether…

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CFPB Amends Mortgage Servicing Rule to Facilitate Communications with Borrowers

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On October 4, 2017, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule amending a provision of Regulation X regarding the timing for mortgage servicers to communicate with borrowers about foreclosure prevention alternatives.  On the same date, the CFPB also issued a proposed rule regarding timing requirements for…

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CFPB Imposes Hefty Fine on Mortgage Servicer for Alleged Violations of Servicing Rules

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On June 7, 2017, the Consumer Financial Protection Bureau (CFPB) issued a Consent Order against mortgage servicer Fay Servicing, LLC (Fay), requiring Fay Servicing to pay $1.15 million to borrowers and to cease activities that the CFPB contended violated the Real Estate Settlement Procedures Act (RESPA), its implementing regulation, Regulation X,…

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Federal Judge Dismisses Claims In Nationwide Default Servicing Class Action

On March 30, 2017, Judge Karas of the Southern District of New York dismissed multiple claims in a putative nationwide class action challenging default servicing activities.  In the case, Tardibuono-Quigley v. HSBC Mortgage Corp., the plaintiff sued her lender (HSBC) and mortgage servicer (PHH) to contest charges she claimed were wrongly…

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CFPB Issues Special Mortgage Servicing Report, States Intention to Use Fair Lending Laws to Target Discriminatory Loan Modification Practices

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On June 22, 2016, the CFPB issued a Mortgage Servicing Supervisory Highlights Special Edition Report, and concluded that mortgage servicers may be violating the servicing rules that the CFPB enacted in January 2014, as a result of servicers’ continued reliance on ineffective technology.  In addition, the press release accompanying the…

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Tenth Circuit Bankruptcy Appellate Panel Approves Settlement Agreement with Foreclosing Lender Over Objections of the Debtor

Often overlooked by lenders and servicers, sometimes striking a deal with the Chapter 7 Trustee in bankruptcy court, is the more prudent and cost effective approach to resolving frivolous lawsuits filed by defaulting borrowers in state court.  In Brumfiel v. Lewis, Chapter 7 Trustee, et al. (In re Lisa Kay…

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Goodwin Procter Sponsors ABA Consumer Financial Services Committee Winter Meeting in Park City, UT - January 9-12, 2016

Don’t miss the Goodwin Procter team (Margaret Crockett and David Permut) at the Welcome Reception on January 9, 2016 at 6:30.  Other highlights of the Winter Meeting, include: a panel presentation called “RESPA Update: Lighthouse, and PHH, and MSAs, oh my!” and a CLE Program presented by the Housing Finance Subcommittee,…

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Recent Class Actions Challenge Property Inspection Charges

From origination through final payoff, plaintiffs’ counsel look for claims in just about every aspect of the relationship between borrowers and their mortgage lenders.  Recently, scrutiny has turned to property inspections carried out during default servicing.  Plaintiffs’ lawyers have filed several class-action suits alleging that inspection fees violate mortgage terms, state…

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New York’s Highest Court Clarifies Judicial Foreclosure Standing Requirements

Editor’s Note:  This post was guest-authored by Joseph Yenouskas, a partner in Goodwin Procter’s Consumer Financial Services Litigation Group who focuses on general civil litigation in federal and state trial and appellate courts, with a particular emphasis on defending financial institutions and mortgage lenders in complex consumer class action lawsuits. The…

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Mortgage Servicer Agrees to Pay More Than $60 million for Alleged “Abusive” Collection Practices

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The mortgage servicing industry remains under scrutiny, as evidenced by the recent joint enforcement action against Green Tree Servicing, LLC by the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC).   In a joint complaint filed in Minnesota, the regulators allege that Green Tree, through its collection activities…

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