According to New Jersey law firm Denbeaux and Denbeaux, Congress buckling to pressure from industry lobbyists when recently passing H.R. 3192 the “Homebuyers Assistance Act” to give lenders immunity from loan origination abuses for several months, signals consumer’s rights at risk in the future.
WESTWOOD, NEW JERSEY (PRWEB) OCTOBER 13, 2015
On Oct. 7, the House of Representatives passed bipartisan bill H.R.3192 which could provide the mortgage origination industry with a four-month window (through Feb 1, 2016) in which it will be immune from liability in civil actions by aggrieved consumers and regulatory actions by governmental agencies including the Consumer Finance Protection Bureau for failures to comply with new standards governing the disclosure of accurate information to consumers in the mortgage origination process.
“Consumer victims of lending abuses have failed to assert their rights in large numbers under the new statutes enacted in connection with the Dodd Frank Wall Street and Mortgage Reform Act. Now those rights are at risk, ” says NJ foreclosure defense attorney, Adam Deutsch Esq.
This is especially the case in New Jersey where only a small number of foreclosure cases are contested. “Nearly 95 percent of those cases are uncontested, despite evidence in the flaws in the foreclosure process,” said New Jersey Chief Justice Stuart Rabner in the February 4th, 2015 story in NJ Spotlight, “New Foreclosure Procedures Put to Test as Number of Cases Climbs in New Jersey.”
“Buckling to pressure from industry lobbyists, Congress recently voted to give lenders immunity from loan origination abuses for several months. Industry efforts to roll back consumer rights and the enforcement powers of the CFPB demonstrate just how potent the protection statutes are and emphasize that if consumers don’t use it, they may lose it,” Mr. Deutch continued.
“Homeowners may not be contesting their foreclosure for a number of reasons,” said Denbeaux & Denbeaux Senior Associate Attorney Adam Deutsch. “Fear is certainly at the top of the list, as is how overwhelming and confusing the entire situation can be. Homeowner trust in their loan servicing companies is another cause. Homeowners report that they continue to work with their loan servicing company in the belief that their loan will be modified and their home saved without the foreclosure being completed. By the time the homeowner finds out the loan servicer will not modify their home, the foreclosure is complete and the homeowner has effectively waived their right to contest the judicial process. The earlier into the process a homeowner knows their rights and the loan servicers and lenders obligations under the law, the better the outcomes,” Mr. Deutsch went on to say.
“Time is on the side of the homeowners, but only if they take action. There are numerous situations in which a homeowner has rights that a lender, bank or loan servicing company must follow. However, there is a much larger issue at stake which the lender, the homeowner, and the loan servicing company are often unaware of involving consumer protection laws enacted by Congress. These federal laws can have major impacts on a homeowner’s case, from issues relating to loan origination, misapplication of interest rates and escrow charges in loan servicing, and improper debt collection efforts. This is why it is so important to keep good records and speak to a knowledgeable attorney who can see the violations in the paperwork,” Mr. Deutsch concluded.
Briefly, these are six of the most obvious situations that homeowners may find themselves in where their rights have been violated and are in need of an attorney’s understanding of federal and NJ state laws.
- Payments are not being accepted by a loan servicing company
- Payments are not being recorded correctly by a servicing company or lender
- Homeowner instructed to go into default in order to get a refinance.
- Denial of a loan modification without proper explanation
- Inaccurate charges of interest, penalties, and escrow fees
- The bank falsely repeats claims that the homeowner has not provided all documents requested as part of the loan modification application process.
Read the whitepaper provided by the law firm of Denbeaux and Denbeaux,“The Six Warning Signs of a Possible Consumer Protection Law Violation”, for greater insight on how consumer protection laws enacted by Congress can help you.
