Litigation Exposure Under The 2013 Dodd-Frank Mortgage Servicing Regulations


In This Issue:

- Introduction

- Potential Litigation Exposure Under the New Mortgage Servicing Regulations Governing Responses to Borrower Inquiries

..Which of the New Servicing Regulations Governing Responses to Borrower Inquiries Are Privately Actionable And Which Are Not?

..Potential Litigation Challenges Presented by Notices of Error and Requests for Information Under RESPA

..Potential Challenges Specific to “Notices of Error” Under §1024.35

..Potential Challenges Specific to “Requests for Information” Under §1024.36

..Potential Challenges Specific to Requests for Payoff Statements Under §1026.36

- Interface of the New Loss Mitigation and Mortgage Servicing Regulations with the Foreclosure Process

..Which of The New Loss Mitigation Regulations Are Privately Enforceable?

..Section 1024.39 - Early Intervention Requirements

..Section 1024.41 – Loss Mitigation Requirements

..Defining “Application”

..Pre-Foreclosure Limitations

..Notice and Review Requirements For Loss Mitigation

..Limitations on Dual Tracking

..Loss Mitigation Appeals

..Back to Where We Started – Are §§1024.35 (Notice of Error) and 1024.36 (Request for Information) Conditions Precedent to Foreclosure?

- Conclusion

- Excerpt from Potential Litigation Exposure Under the New Mortgage Servicing Regulations Governing Responses to Borrower Inquiries:

As amended, Regulations X and Z contain three new provisions impacting servicer responses to borrower inquires. While Dodd-Frank made certain changes directly to RESPA’s existing framework for a Qualified Written Request (“QWR”), the effect of the Notice of Error, Information Request, and Payoff Request regulations will increase the number and type of written inquiries that trigger a legal obligation on the part of the servicer to respond in a specified time and manner. Failing to do so will potentially create litigation exposure under the private rights of action of both the TILA and RESPA.

Please see full Publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Burr & Forman | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.