Ocwen Must Reimburse Owners

If you have/had a loan from Ocwen, then you may be in line for some Christmas-time cash from the mortgage servicer. In an consent agreement with the Consumer Finance Protection Bureau (CFPB) and 49 state attorneys general filed in Federal court, Ocwen has agreed to pay $2 Billion in loan principal reductions to borrowers whose homes are worth less than the amounts of the loans (underwater borrowers) and refund a further $125 million to 185,000 borrowers who were already foreclosed upon. The consent agreement covers claims by the CFPB that Ocwen at every stage of the loan servicing process the firm violated various areas of the law, including such things as misapplication of payments by borrowers, unauthorized fee assessments, and robo-signing of documents, to name a few of the violations. In a related regulatory filing, Ocwen claims it has already set aside a reserve to cover all of the settlement except $500,000. So, if you have had any connection to Ocwen regarding your mortgage loan and/or have been foreclosed on a loan they were servicing, you should call them regarding how much and/or if, you are covered in this agreement. If they can't, or won't provide satisfactory answers, call the CFPB directly and ask them. Their phone number is (855) 411-2372. Their web site is: www.consumerfinance.gov . Good Luck and Happy Holidays.

Possible Relief in New Jersey!

In an agreement between the state of New Jersey and PHH Mortgage company, PHH has agreed to pay the sum of $6.25 Million to cover allegedly misleading activities in processing/granting of loan modifications and other processes to help homeowners avoid foreclosure. Of this total, "the settlement includes $3.61 million in restitution for approximately 2,000 borrowers nationwide whose loans are serviced by PHH. For example, 44 borrowers whose homes were sold in sheriff’s sales while loan modifications were pending will receive $10,000 each." These payments will be made within thirty days of the effective date of the settlement. The balance of the settlement will be paid to the state of NJ. Additionally, PHH will have to make regular reports on all loan mod applications and foreclosures to the NJ Attorney General for the next two years. If you have, or had, a loan with PHH, or your loan was serviced by PHH, you can call them or the NJ Attorney General for more information as to how this settlement affects you. As always, Good Luck!

New Suits Against Banks in LA

In the past few days, the city of Los Angeles has filed suit against three major mortgage lenders: Wells Fargo, BofA and Citibank, alleging that their mortgage procedures had been at least partly to blame for over 200,000 foreclosures between 2008 and 2012 on mortgages made since 2004, costing the city over $1.2 Billion. The suit charges these lenders with various types of discrimination in making mortgages, including redlining. All three defendant banks denied any of the violations charged. If you borrowed a mortgage from any of these banks at any time since 2004, and have lost your home, or been threatened with the loss of your home, contact your attorney, or, if you cannot afford one, contact legal aid. Clearly, the charges have to be proven in court before any damages can be assessed, and that may take several years, as well as the fact that the existing suits are filed by the city of LA, but, if you feel you have valid claims under these alleged infringements, your attorney may feel it proper to join the suit in your behalf to cover any damages you may have incurred. As always, Good Luck.

Foreclosed by MERS? VERY IMPORTANT NEWS!!

If you are facing foreclosure, or have been foreclosed in the past 4 years via the lender(s) using MERS as the trustee to file and produce documents, you may have just gained a major weapon in your fight to void the foreclosure action. A Federal District judge, John J. McConnell, ruling in the case of Cosajay v. MERS, this week ruled that borrowers facing foreclosure DO have legal standing to bring a suit against the lender and all transferees or successors to the mortgage. This is VERY important as previously only a local case in Massachusetts had gained this type of decision in a local Massachusetts court. The fact that this case, tried in Federal court in Rhode Island only covers RI cases, doesn't preclude you and your attorney from citing it to try to get a court elsewhere in the USA to state the same rule. It is NOT legally binding precedent as it is NOT from an appellate court, but its very existence can make it a powerful tool to win a case when a doubtful or fraudulent transfer/foreclosure through or to MERS is involved. Previously, all such cases from homeowners were usually summarily dismissed with the claim that the homeowner had no standing to sue as he/she hadn't been involved in the transfer from their lender to/through MERS. This ruling goes a long way to putting that theory in the trashcan where it belongs! If you have any questions, call your attorney and tell him/her of this case. If you cannot afford an attorney, call Legal Aid. As always, Good Luck.

CFPB Seeks Complaints

The Consumer Finance Protection Bureau, CFPB for short, has had as its main purpose since it was created a couple of years ago, the protection of consumers from any egregious procedures or unfair activity by lenders. Over the time of its existence, this has included fielding complaints from consumers who feel wrongfully treated by their lenders. Now they are planning on increasing this activity. The newest complaint procedure has not yet been rolled out, but in the meantime, if you feel wrongfully dealt with on your financing, or that your rights were violated, you can still send your grievance to them for investigation. One place to go is: www.consumerfinance.gov , which is their web site. That site will then guide you through the complaint process. As always, good luck.

Affected by Government Shutdown?

If you're directly affected by the ridiculous government shutdown that Congress has foisted upon the country and are facing possible default on your mortgage, there's good news for you from the FHA. The FHA, following similar actions by the VA and both Freddie Mac and Fannie Mae, has asked all of its lending partners to "take all reasonable steps" to help borrowers avoid defaults due being 'furloughed' (isn't that a great word instead of laid off or fired) or having work time cut as part of their being federal government employees affected by the current government shutdown. They have also asked that late fees and other penalties for non-payment or late payments be waived for the duration of the shutdown. Any questions: get in touch with FHA. Their web site is: www.HUD.gov. As always, good luck.

Helpful Refi Info

In order to help educate homeowners about possible HARP refinance options, the Federal Housing Finance Agency (FHFA) has announced a new program that is designed to get owner eligible under HARP better informed about their refinance options. In order to be eligible under HARP, the owner's loan "must be owned by Fannie Mae or Freddie Mac, the mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009, the current loan-to-value ratio must be greater than 80 percent, and the borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months." While to date over 2.8 million homeowners have successfully refi'd under HARP, FHFA says there are still a fair number of owners who are unaware of their options, or who, for a variety of other reasons, have not yet availed themselves of the program. This new program is designed to help such owners take advantage of the program. So, if you and your current loan fit the above parameters, call FHFA for more information and you may be able to save yourself a good deal of money, as well as your home! As always, Good Luck.