When Can a Mortgage Servicer Face Criminal Charges?
In each of the transactions performed by mortgage servicers, there are strict regulations in place designed to protect borrowers. When a mortgage
At the Law Office of Bukh Law Firm, PLLC, our attorneys provide legal representation to clients accused of mortgage servicing fraud. We can help you to respond to a state or federal investigation, to regulatory action, to civil actions, and to criminal charges.
Examples of Mortgage Servicing Fraud
There are many different types of actions that can be considered mortgage
- Misleading buyers about mortgage modifications: Many buyers are told that their
serviceris working with them to negotiate a mortgage modification. In reality, the servicermay be working behind the scenes to move forward with foreclosure. In some cases, servicersactually “lose” documents in order to prevent a modification from occurring so the servicercan foreclose on a home.
- Misapplying payments. This can trigger late fees and penalties for the borrower while providing more money for the mortgage
- Failure to honor
mortgagemodifications: When a mortgage servicerpurchases a mortgage loan, the loan buyer may sometimes improperly refuse to honor a mortgage modification agreement that was reached with the prior lender.
- Charging illegal fees: Mortgage
servicersare not permitted to charge homeowners fees for the costs of obtaining price opinions for brokers or monitoring properties. Sometimes, these and other illegal fees are charged by mortgage servicers.
- Refusal to provide necessary information for
loanrefinance: Mortgage servicersmay fail to provide loan payoff information and take other steps to prevent a refinance from occurring, since the refinance can cause the loss of revenues team from the loan.
- Improper purchase of forced place insurance: When a buyer
does not have requiredinsurance coverage on a home, a servicercan buy insurance (called forced place insurance). In some cases, homeowners are not properly informed of insurance requirements or were misled and mortgage servicerspurchase very costly forced place insurance. This can sometimes force a borrower into default.
- Falsifying documents: When a
servicerneeds to foreclose, the servicerneeds to have all documents in line including the original paperwork showing the right to collect on the mortgage loan. Many home loans were sold multiple times and the servicerended up not having the necessary paperwork to prove a right to collect on the loan. Some servicersresponded to this problem by backdating documents and falsifying documents. MERS, a database designed to track mortgage transfers, had quality control issues that made fraud easier, and MERS was supposed to be modified as part of a 2011 settlement but some evidence suggests that modifications have not been made. Robo-signing: Before the foreclosure process occurs, the documents are supposed to be reviewed by qualified parties. Some mortgage servicers had inexperienced and unqualified people rubber-stamping documents and singingoff on hundreds of foreclosures.
These are just some of many different examples of mortgage
Getting Help from a Mortgage Servicing Fraud Lawyer
At Bukh Law Firm, PLLC, our attorneys have gone up against the U.S.
The Federal Bureau of Investigation has indicated that federal agencies have developed new techniques to combat mortgage fraud and stop criminal behavior.
With investigators cracking down on suspected mortgage fraud, it is time to get legal representation now. Call today to speak with a New York City mortgage servicing fraud lawyer for help.