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
Ohio
Typically servicers are exempt from FDCPA regulation...we've had that discussion here before BUT one little wrinkle that still exists are servicers/lender who are assigned the note AFTER default are NOT exempt from FDCPA.

It only makes sense that if a foreclosure complaint is filed there exists a default....when an assignment follows the filing the new holder of the note is AUTOMATICALLY a debt collector and all their federal protections and state exemptions are worthless to them.

ALSO the immunity of debt collection attorneys has been repealed in the FDCPA.

Is this a silver bullet? No but ANY bullet will wound and enough wounds will eventually kill or permanently cripple and mame.

Most would never reach trial and that's okay!.......I see a lot more servicers being a bit more accommodating at the settlement table as a result.
Quote 0 0
H. Gosh

Not only if they received the note after default.  If they treat the note as if it was in default when they received it.  In other words, many notes were transferred that were viable functioning accounts, however, the servicer treated the note as if it was in default, or placed it into default within 30 days because the hello/goodbye letters were not sent, and payment went to the old servicer.

Quote 0 0
Ohio

EXCELLENT POINT!!!!!!!!!!!!!!!!!!!!!! Thanks for adding that H. 

Quote 0 0
ABC
Ohio-

     Can you please explain what you mean when you say the immunity of debt collection attorneys is repealed by FDCPA? This might be interesting!

Thanks

ABC
Quote 0 0
Ohio
To get a better understanding of it please read the case I posted. The Judge discusses this point in his decision.

Even if the entity that is owed money is the true creditor and exempt from FDCPA the attorney litigating the collection for that creditor used to be able to share that same immunity....this is no longer the case. 

The FDCPA used to protect attorney's....it no longer does that
Quote 0 0
TommyD

If you state typically servicers are exempt from FDCPA regulation, what about them reporting to credit reporting agencies they are not a collection agency nor original creditor. I'm I understanding this correct?

Quote 0 0
Ohio
The servicer collecting on behalf of the original creditor through assignment by the original creditor stands in the same shoes as the original creditor in regard to FDCPA. IF the assignment to the servicer occurred prior to any default.

Technically they are still a 3rd party and this causes a lot confusion. I personally feel that as third parties they should automatically be deemed debt collectors but that isn't the way it works.

Once the note is in default and the servicing changes hands - the new servicer is then considered a debt collector.
Quote 0 0
How does all of this fit into the equation when a servicer is owned by a bank?


Quote 0 0
Ohio

Servicers owned by banks? doesn't matter. 

Quote 0 0
Oh, bit IT DOES MATTER.


Quote 0 0
Kevin
Ann-

     In my case, nearly every document I receive has a standard "blurb" at the bottom that it is a communication from a debt collector, and any information collected will be used for that purpose, etc. My servicer is owned by a bank; but remember, as in the case we've been discussing, the credit card company was likewise owned by a bank... While they will likely wish some wiggle room around this language, if it looks like a duck, quacks like a duck, it must be a duck...

     Check your correspondence to see if there is similar language. It is not a slam dunk, but I think if they call themselves a debt collector, and otherwise ACT like a debt collector, it become challenging for a judge to rule that they are not.

     I hope I helped!

Kevin
Quote 0 0
Ohio
I don't care if the servicer is owned by GOD himself....if that servicer....irregardless of who owns them is assigned a debt after default   then that servicer IS a debt collector by definition outlined in the FDCPA.

Don't confuse state law being pre-empted by federal law for national banks...this pre-emption protection has no bearing in a FDCPA claim.

Whoever disagrees...fine, but I would hope someone would at least read it before disputing.

Show me the language within the Act that disputes it.
Quote 0 0
I agree with you Ohio.

http://www.paed.uscourts.gov/documents/opinions/06D0003P.pdf


Quote 0 0
Wolf Firm

Danger from the
Fair Debt Collection Practices Act

 

Roland P. Reynolds, Esq. of The Wolf Firm
    (CTA Newsletter, Summer 1995)


The Fair Debt Collection Practices Act (FDCPA) has long been ignored by the mortgage servicing and foreclosure industry, which have thought of the law as designed to arrest the abusive behavior of bill collectors, such as the late night phone calls and the harassing letters to the debtor's place of business. In fact, it is a law whose impact is beginning to be felt throughout the mortgage industry. The FDCPA is a federal law, first enacted in 1977. For years, the FDCPA was enforced through litigation by consumers that was outside the context of the mortgage foreclosure. However, the FDCPA's expansive language, as well as recent court decisions have led more industries, such as lawyers and mortgage services, to examine whether they are subject to the provisions of the FDCPA. The answer is that they often are. This article will discuss who is subject to the provisions of the FDCPA, and if subject thereto, what the compliance requirements are, and finally, what the penalty provisions for violation of the FDCPA are.

More info here
http://www.wolffirm.com/publications/41.htm
Quote 0 0
Ohio
Beautiful....now we are getting somewhere.

Anyone with FDCPA questions..please post them here. I have studied the Act since 2001...I know...I'm wierd.....anyway, If I can help someone identify an FDCPA issue I am more than happy to do it.

Those that have not yet been able to connect the dots between FDCPA and foreclosure...they are there.

Thanks Ann for posting that case...the reasoning in the decisions is what is important...not who wins in the end. This Judge went to great lengths in interpreting the language within the FDCPA. This is definately one to tuck away for future reference.


Quote 0 0

Our Proven System Makes Members Money While They Are Able To Keep Their Home, Fight Off Debt Collectors, Credit Card Companies, And In Just About Any Situation, They Get Paid! Monthly Membership.

 

http://efb6cwqg2glo5n7lu23fjd3fpi.hop.clickbank.net/

Quote 0 0
Write a reply...