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United States Sued and Settled Suit Against Major Mortgage Servicers for Unfair and Deceptive Practices

posted by Nathalie Martin

To add to Jean's post on the National AG's mortgage settlement, we now have a copy of a complaint that formed the basis for the AG settlement, in which the United States of America (along with all the states but Oklahoma) sued most of the major  servicers for committing misconduct in connection with the origination and servicing of single family mortgages. Here is the complaint (Download US v Servicers), but to give you a flavor the suit alleges, among other things, failing to discharge underwriting obligations, failing to do modification underwriting, losing the paperwork, failing to train or maintain sufficient staff to deal with the modification processes, allowing borrowers to stay in trial modifications for excessive periods of time, wrongfully denying modifications, misleading consumers in connection with modifications, and foreclosing while a customer is in modification.

Comments

It is a felony to knowingly record a false or forged document in California, do they get a pass on that one?

According to our very own (bought-and-paid-for) Kamala Harris, yes. They get a full pass on everything. Three guesses on which industry ponied up a significant portion of the contributions to her election campaign (and the first two don't count; by the way, you can no longer easily verify this, because she quickly took down her campaign website once elected). Incidentally, the only actions Kamala Harris's office has taken to-date in the foreclosure crisis has been against (you guessed it) individuals (including attorneys) representing borrowers.

filed and settled simultaneously. like magic. as if it never happened at all...

filed and settled simultaneously, like magic, as if the fraud and abuses weren't STILL happening . . .

I read some of Abigail Field's analysis of how the oversight would (not) work; seemed to me more like a roadmap of how to embezzle with impunity than a serious effort to address serious problems.

Thanks for posting the link to that pdf. It was interesting reading.

By virtue of the acts described above, the Banks made, used, or caused to be made or used, a false record or statement material to a false or fraudulent claim.

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