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Big bank wrongly foreclosed on more than 2,000 borrowers

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Mortgage Professional America | 29 Sep 2014, 03:50 PM Agree 0
One of the nation’s biggest lenders drove more than 2,000 borrowers into foreclosure by sitting on important documents, according to the CFPB
  • Gordon Schlicke. | | 29 Sep 2014, 04:31 PM Agree 0
    While I may carp about CFPB interference this may be one example of some good they perform.
  • Wm Matz | | 29 Sep 2014, 04:34 PM Agree 0
    The numbers are probably much greater for them and even more for the Big Banks. E.g., we are currently trying a case against Citi and just stopped one by B of A, all for similar botched mods. The problem for the banks is the recent disclosures that these foreclosures were often intentional, not just the result of sloppy paper work or short staffing.
  • Cheryl M | | 29 Sep 2014, 04:35 PM Agree 0
    Chase Home Loan (all) did the same thing, just another bank caught up with the times. Chase just settled lawsuit in May 2014 to compensate (adjust their mortgages) those who had trial modification dangle in front of their face and now have to re pay those who "suffered through" by the "Poor Job" as CFPB calls it and who are still in these "so called" permanent modifications. None one will ever see "permanent" if these banks keep getting sued for their years of doing a poor job. Hopefully we'll see the end of this soon.
  • David P | | 29 Sep 2014, 06:43 PM Agree 0
    Since 20mil is set to be paid to 2,000 homeowners... that works out to $10,000 per homeowner. Flagstar had a great day. If Flagstar was convicted of such behavior, each homeowner would be awarded a lot more than that. But that is not the way things are done... no admission of guilt, no civil liability for their individual wrong, CFPB gets a great headline and the consumer gets screwed again.
  • JR | | 29 Sep 2014, 10:36 PM Agree 0
    What's frustrating is the number of times banks tell borrowers to go into default so they can qualify for a modification, and then don't do the modification anyway after they've guided the borrower into being 90 days late on their mortgage.
  • Paul silverman | | 01 Oct 2014, 10:10 AM Agree 0
    Is there a class action lawsuit for those effected by this??
  • | | 02 Oct 2014, 06:18 PM Agree 0
    When is B of A going to be prosecuted for the same offenses? Especially those cases that were originated by Countrywide.
  • | | 02 Oct 2014, 06:22 PM Agree 0
    Yes, I recall those cases where after encouraging borrowers to go into default the banks would later inform them that they don't qualify for modification because of the default on their record.
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