Understanding The Borrower’s Bill Of Rights
Due to foreclosure scams and recent concerns over mortgage servicer “pyramid” late fees, state attorney generals have proposed a national settlement with the 14 biggest banks and servicers. It calls for billions of dollars in penalties from the banks and additional billions in principal reductions for homeowners struggling with mortgage debt. The agreement contains a new mortgage servicing bill of rights for borrowers, which outlined minimum standards and procedures that would govern how homeowners are treated in the future.
Below is an overview of the new borrower’s bill of rights:
- Servicers would be required to employ and train loss-mitigation staff to manage borrower inquiries and requests for loan modifications.
- Servicers would be required to identify the legal owner of the mortgage (bank or other party).
- Servicers would be required to provide mortgage customers with a one point of contact for their loan modification requests.
- The plan calls for a ban on dual-tracking of modifications and foreclosures
- Servicers would not be allowed to advise homeowners to default on their mortgages, or discourage borrowers from seeking help from nonprofit counseling organizations.
- Forced insurance practices would be severely cut.
The borrower’s bill of rights could give all homeowners and borrowers significant new protections.
Contact Our Bankruptcy Attorneys To Learn More
To learn more about your rights as a homeowner in Florida and for advice from an experienced attorney, contact our office online or by phone at 305-285-9100. At Kingcade Garcia McMaken, our lawyers offer free initial consultations to every potential client.
