Today’s Plain Dealer reports on our groundbreaking case against J.P. Morgan Chase for their failure to process our client’s loan modification package in an timely fashion and for foreclosing on our client while a completed loan modification application had been submitted to Chase.
New regulations under the Truth in Lending Act (TILA) and the Real Estate Settlement Protection Act (RESPA) for the first time allow aggrieved homeowners a right to sue mortgage loan servicers who fail to process loan modification applications in a timely fashion. That is exactly what we did last week in the Federal District Court for the Northern District of Ohio.
The new regulations also prohibit the filing of a foreclosure action, or taking affirmative steps within a foreclosure action if a homeowner has a submitted a completed loan modification application. The ban on foreclosure under the regulations is for 120 days.
These rules should not be news to Chase or to other loan servicers because the new regulations are based on the standards that Chase itself agreed to in the National Mortgage Settlement just two years ago.
We will keep you updated on our efforts to hold Chase accountable in this case. If you are frustrated in your effort to obtain a loan modification it is important to consult with an attorney who is familiar with the new servicing regulations and the significant rights of homeowners, including the right to sue.