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Suing Banks and Loan Servicers to Enforce Borrowers’ Rights Under RESPA and TILA

In addition to defending foreclosure in state court, and guiding clients through federal bankruptcy court, recent changes to federal law have created high standards of conduct and behavior for banks who service mortgage loans. These laws created powerful legal weapons to hold the banks accountable when they fail to meet those high standards.

The Law Office of Darren Aronow, PC will file federal lawsuit on behalf of borrowers who have been wronged by their mortgage lender, using Regulation X of the Real Estate Settlement Protection Act and Regulation Z of the Truth in Lending Act.

Many people who have a dispute with their mortgage lender, fall behind on their mortgage, are in bankruptcy, or are in a state court foreclosure action have actionable claims against their mortgage loan servicers.

Some of the following issues could trigger liability under Regulations X and Z for statutory damages of $1,000 to $4,000, compensatory damages (including emotional distress, legal fees, credit diminution and other pecuniary loss), actual damages and the attorney’s fees are even paid by the same banks.

  • Failure to timely process loss mitigation applications, including loan modifications, deed-in-lieu of foreclosure applications and short sale requests: A decision must be made within 30 business days of receipt of a complete loss mitigation package and a servicer must request additional documents from an applicant within five business days.
  • Dual Tracking: A loss mitigation application triggers a 120-day stay on any activity to advance a foreclosure, such as commencing a foreclosure action, scheduling a foreclosure sale or moving forward in a judicial foreclosure with a motion for summary judgment, presenting evidence at trial or other effort to advance judgment or sale.
  • Failure to provide information as properly requested about ownership of note and mortgage under TILA within 10 business days.
  • Failure to provide information as properly requested about loan payments, loan history and other loan information within 30 business days.
  • Failure to apply mortgage payments on the day they are received and to principal, interest and escrow payments before late fees and other charges.
  • Failure to transfer all the loss mitigation documents when the bank transfers to a new servicer
  • Failure to approve a trial modification in 3 months
  • Failure for a lender to recognize a loan modification if transferred to a new lender
  • Failure to calculate paymentsand fees properly

These are only some of the many weapons in our arsenal to keep your home and family safe from the lenders’ improprieties.