Because they don’t think you will know they violated the law, and even if you do, they are banking on the fact that you won’t do anything about it.
And even if you do take some action, it will be the wrong action.
Let’s look at the mindset of the mortgage companies to understand why they will violate the new RESPA/CFPB laws.
Their research shows that for every 1000 violations of the RESPA laws related to mortgages, only 10 consumers… (Read more)
As of January, 2014, we now have some wonderful new federal laws that prevent a foreclosure in Alabama from occurring until you are 120 days behind.
Previously, before these new laws, you could be foreclosed in a matter of just a couple of months in Alabama. You would be set a default letter, which would give you 30 days to correct any default or way that you had allegedly violated the contract. If you did not cure the default than… (Read more)
Mortgage servicers (Bank of America, Chase, Citimortgage, Nationstar, Ocwen, Wells Fargo, etc) make very little money on “servicing” your loan. In fact, if they can charge you a late fee, a BPO (Broker Price Opinion), property inspection, etc. then normally they make more money from this than a month’s worth of servicing fee.
So from a financial perspective, there is great incentive for the servicers to come up with a fee or charge as this is money that goes directly… (Read more)
In the last twelve months, many of the large mortgage servicing companies have sold or transferred the “servicing rights” to another company. For example, Bank of America has transferred hundreds of millions of dollars of servicing rights to Nationstar.
(A servicing company is simply the company that sends you bills, collects your payments, handles escrow, etc. for the company that actually owns your mortgage loan).
Here is a typical scenario we see with, for example, Nationstar:
You entered into “loss… (Read more)
In January 2014, the federal government released new rules and regulations for RESPA (Real Estate Settlement Practices Act) which governs mortgage servicers — the companies that send you bills, take your payments, figure (or mis-figure) escrow, and the companies that handle loan modifications and foreclosures. These include Bank of America, Chase, CitiMortgage, Ocwen, and Wells Fargo as well as smaller companies.
These new rules fundamentally change the whole situation with your mortgage company — these new rules give you a… (Read more)
The short answer is “Yes” as particularly since January 10, 2014 there are new rules in place that for the first time give you real rights in modifying your loan and stopping a foreclosure. We were able to stop foreclosures in the past by suing the mortgage companies (your mortgage gives you the right to do this) but now we have much better tools with the new RESPA, which is a federal law.
In the past, many homeowners thought the… (Read more)