Oh boy. Here come the lawsuits against loan servicers!
This just flashed across my Reuters news feed...
RTRS-MAINE JUDGE ORDERS GMAC TO COVER BORROWER'S ATTORNEY'S FEES, IN FORECLOSURE CASE WHERE OFFICIAL SIGNED AFFIDAVIT WITHOUT READING CONTENTS-COURT RULING
RTRS-JUDGE SAYS FINDS AFFIDAVIT BY GMAC OFFICIAL WAS SUBMITTED IN BAD FAITH
RTRS-JUDGE FINDS GMAC HAS PERSISTED IN UNLAWFUL DOCUMENT SIGNING PRACTICES, EVEN AFTER FLORIDA COURT ORDER
RTRS-JUDGE SAYS GMAC'S "FLAGRANT DISREGARD" OF PROPER AFFIDAVIT SIGNING PRACTICES APPEARS TO PERSIST, DESPITE EARLIER COURT ORDER
RTRS-BRIEF-Judge says GMAC submitted foreclosure affidavit in bad faith, must cover borrower's attorney fees
This sure does set a precedent for borrowers to put a finger in the eye of their loan servicers. The spectrum of allegations will likely grow as attorneys sort through piles of paperwork in search of further "FLAGRANT DISREGARD" of proper process.
The FHFA has responded. Director Ed Demarco says...
“Recent accounts of deficiencies in foreclosure documentation by two large mortgage servicers raise concerns for homeowners and mortgage investors alike. FHFA, as conservator for Fannie Mae and Freddie Mac, supports efforts by the Enterprises to remind servicers and other parties engaged in processing foreclosures to do so in accordance with their seller-servicer agreements and applicable laws and regulations. Where deficiencies have been identified, FHFA has directed the Enterprises to work collectively to develop and implement a consistent approach to address any problems. In addition, FHFA is coordinating with appropriate regulators on this issue"
He adds, "Our goal is to assure the integrity of the foreclosure process and to see that any corrections in processes be tailored to the problem, protecting the rights of borrowers and investors without causing any undue disruption to the mortgage markets.”
This cannot be a good thing for the image of the mortgage industry.
READ MORE ABOUT JUDICIAL FORECLOSURE STATES
READ MORE ABOUT JP MORGAN'S ADMINISTRATIVE ERRORS
Special Servicers More Motivated to Mitigate Housing Losses
MERS: Myths, Misconceptions, and Realities
[View:http://eplayer.clipsyndicate.com/cs_api/get_swf/2/&wpid=99&va_id=1729523&cpt=8]
