Mortgage litigation to rise in year ahead

by MPA30 Dec 2013
A mortgage lender who serves as an expert witness has predicted mortgage litigation will continue to increase.

Joffrey Long, president of Southwest Bancorp, a mortgage broker, lender and loan servicer, provides expert testimony on mortgages and loan servicing. He has predicted that Dodd Frank will see an increase in litigation over mortgages and loan servicing.

Long said areas that are particularly likely to see give rise to litigation are:
  • periodic loan payments made by borrowers, crediting of the payments, and required periodic statements
  • the handling of escrow (impound) accounts for property taxes and insurance, and the handling of "forced-place" insurance
  • requirements to contact borrowers upon delinquency, and advise them of the availability of workout solutions
  • "single point of contact" issues, and "live contact" requirements, for borrowers to obtain information
  • information requests from borrowers, and the handling of the requests
  • foreclosure practices, new timetables, and limitations on when foreclosure can be filed
  • definitions of many new terms, or phrases referenced by the Consumer Financial Protection Bureau, that have now become part of the laws and/or regulations
"Under Dodd-Frank, an understanding of the many new requirements, and the ability to clearly express to
others the borrower's and loan servicer's responsibilities, will be essential," Long said.


  • by Bruce | 12/30/2013 11:15:52 AM

    I'm interested to see how many lawsuits take place within the next couple of years that are linked to the "Ability to Repay" rule. I think it's going to be interesting on what the borrower(s) and lawyer(s) dream up just to get out of paying a mortgage.


Is TILA-RESPA a good or bad thing long term?