Homeowners Frustrated By Loan Modification Process can Sue Under New CFPB Regulations

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.

Marc Dann

mdann@dannlaw.com

216-373-0539

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5 comments on “Homeowners Frustrated By Loan Modification Process can Sue Under New CFPB Regulations
  1. Ewan says:

    fantastic post, very informative. I’m wondering why the other specialists of this sector do not understand
    this. You should continue your writing. I’m sure, you have a great
    readers’ base already!

  2. […] New Federal Regulations provide additional protections and avenues for homeowners who fall behind on their mortgage but wish to stay in their homes. At the Dann Law Firm we have now filed 5 lawsuits against mortgage loan servicers who have violated Federal Regulations X and Z which are now just over one year old, and we anticipate filing more in the future. These regulations require quick disclosure of information critical to understanding and defending a foreclosure and, most importantly, set strict timelines and rules of conduct for mortgage loan servicers who undertake to modify an individual’s home loan. […]

  3. […] New Federal Regulations provide additional protections and avenues for homeowners who fall behind on their mortgage but wish to stay in their homes. At the Dann Law Firm we have now filed 5 lawsuits against mortgage loan servicers who have violated Federal Regulations X and Z which are now just over one year old, and we anticipate filing more in the future. These regulations require quick disclosure of information critical to understanding and defending a foreclosure and, most importantly, set strict timelines and rules of conduct for mortgage loan servicers who undertake to modify an individual’s home loan. […]

  4. […] New Federal Regulations provide additional protections and avenues for homeowners who fall behind on their mortgage but wish to stay in their homes. At the Dann Law Firm we have now filed 5 lawsuits against mortgage loan servicers who have violated Federal Regulations X and Z which are now just over one year old, and we anticipate filing more in the future. These regulations require quick disclosure of information critical to understanding and defending a foreclosure and, most importantly, set strict timelines and rules of conduct for mortgage loan servicers who undertake to modify an individual’s home loan. […]

  5. […] New Federal Regulations provide additional protections and avenues for homeowners who fall behind on their mortgage but wish to stay in their homes. At the Dann Law Firm we have now filed 5 lawsuits against mortgage loan servicers who have violated Federal Regulations X and Z which are now just over one year old, and we anticipate filing more in the future. These regulations require quick disclosure of information critical to understanding and defending a foreclosure and, most importantly, set strict timelines and rules of conduct for mortgage loan servicers who undertake to modify an individual’s home loan. […]

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