Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
Title VI: Mortgage Servicing - (Sec. 601) Requires a creditor, in connection with the formation or consummation of a consumer credit transaction secured by a first lien on the consumer's principal dwelling (other than a reverse mortgage or a credit card transaction), to establish in a federally insured depository institution, at the time of consummation, an escrow or impound account for the payment of taxes and hazard insurance, and, if applicable, flood insurance, mortgage insurance, ground rents, and other required periodic payments or premiums.

(Sec. 602) Requires the creditor or servicer of a mortgage loan to advise a consumer in writing of the consumer's responsibilities and the implications for the consumer in the absence of an escrow or impound account, if one is not established or the consumer chooses to close one.

(Sec. 603) Amends RESPA to prohibit certain practices by federally related mortgage loan servicers, including: (1) obtaining force-placed hazard insurance unless it is reasonable to believe the borrower has failed to comply with the loan contract's requirements to maintain property insurance; (2) charging fees for responding to valid qualified written requests; (3) failing to respond timely to borrower's requests to correct errors relating to standard servicer duties; and (4) failing to respond within 10 business days to a borrower's request to provide relevant contact information about the owner assignee of the loan.

Prescribes requirements for a federally related mortgage loan servicer to meet when obtaining force-placed insurance (hazard insurance coverage obtained by a servicer when the borrower has failed to maintain or renew hazard insurance on a property as required under the mortage terms).

Requires prompt crediting of a borrower's payments on the business day received by a home loan lender or servicer.

Increases the maximum additional damages for RESPA violations: (1) from $1,000 to $2,000 for an individual action; and (2) from $500,000 to $1 million for a class action.

Reduces the maximum length of time for a loan servicer to respond to borrower inquiries: (1) from 20 to 10 days to acknowledge receipt of an inquiry; and (2) from 60 to 30 days to take certain actions in response to an inquiry.

Requires: (1) a creditor or servicer to send a payoff balance within seven business days of receipt of a borrower's written request; and (2) prompt refund of escrow accounts upon payoff.

(Sec. 604) Requires the Secretary to study and report to Congress on: (1) mortgage servicing practices and their potential for fraud and abuse; and (2) mortgage servicing improvements.

Quote 0 0
O -

Every time I'm looking for something, it pops up in this forum.

Thank's Mike
Quote 0 0
Fed Up
O- this appears to be a bill that was introduced, go to the link that was provided above. 

Latest Major Action: 12/3/2007 Referred to Senate committee. Status: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. 
The current RESPA should be able to be found from going to the home page of this website, not sure eactly where it is. 

Good Luck!
Quote 0 0

Thanks for letting me know.

Quote 0 0
One of the strongest features of the bill is elimination of Yield Spread Premium.  This is the extra kickback a broker gets from the lender for putting you into a higher rate loan than your qualified for.  This is Chris Dodd's and Chuck Schumer's baby.

Ya gotta hand it to these guys for the quick action and hard work they've put into this crisis.
Quote 0 0
O -
That's for sure.

H.R. 3915 has been added to the Legislative page on

Quote 0 0
Write a reply...