Major Victory by Boot Camp Attorneys in Arkansas

At the  NACBA convention we received word that the Arkansas Supreme Court had ruled in our favor that EVERY summons issued by a debt collection mill law firm, Hosto and Buchan, from 2003 to 2011 was defective, in that it did not tell the defendants how much time they had to answer, and thus the trial courts never obtained personal …

New FCC Ruling Expected to Have Major Legal Impact on Financial Services Industry

FCC Chairman Tom Wheeler’s TCPA “Fact Sheet” on forthcoming declaratory rulings issues should scare the heck out of any business using any telephone to reach potential, current or former customers. I believe the rulings will have a substantial impact on customer operations in the financial services industry. I expect the Declaratory Rulings to touch a number of crucial issues driving TCPA litigation. Businesses …

CFPB Goes After RPM Mortgage for Illegal Bonuses and Commission in Mortgage Originations

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) filed a complaint in federal district court against RPM Mortgage, Inc. and its CEO, Erwin Robert Hirt, for illegally paying bonuses and higher commissions to loan originators to incentivize them to steer consumers into costlier mortgages. The CFPB also filed a proposed order that, if entered by the court, would require …

First Live Contact of Borrower by Servicer After Default–Loss Mitigation Rules

Under § 1024.39(a) of Regulation X, a servicer must establish or make good faith efforts to establish live contact with a delinquent borrower not later than the 36th day of the borrower’s delinquency and, promptly after establishing live contact, inform such borrower about the availability of loss mitigation options “if appropriate.” The Bureau has added comment 39(a)-3.i to clarify that …

Unscheduled Bankruptcy Debt and Actual Knowledge of Bankruptcy by Creditor

11 U.S.C.S. § 523(a)(3)(B) contains an exception to discharge in bankruptcy for debts specified in § 523(a)(2), (4), or (6) that are neither listed nor scheduled in time to permit timely filing of a proof of claim and timely request for a determination of dischargeability of such debt under one of such paragraphs, unless such creditor had notice or actual …

Service of a Request for Information or Notice of Error Under Regulation X

Section 1024.36 of Regulation requires a borrower or the representative of the borrower to serve a Request for Information or a Notice of Error on any special address that has been designated by the mortgage servicer.  Section 1024.36(b) provides that if a servicer establishes such an address as provided for by the Regulations then the “borrower must use” that address …

Loan Modification Seminar – New York / New Jersey

We are happy to announce our next seminar, a loan modification session focusing on the national programs. It will be presented by Boot Camp speaker Bobby Rivera and include special guest speakers, Bruce Levitt and Marc Dan and it will be held in Fort Lee, New Jersey. Please click here for more details and to register.

Loan Modification Quiz Question 3

Q. A borrower has a loan that was originated by Bank of America and guaranteed by FHA and is now over 4 years in arrears. If the borrower is over 30% in arrears of unpaid principal balance, does the borrower have a chance for modification? For FHA HAMP, the maximum partial claim allowed is 30% of the unpaid principal balance. …

Loan Modification Quiz Question 2

Q. A borrower has a formerly World Savings Bank, option ARM loan and the current servicer is Wells Fargo. What is the most common type of modification granted for this type of loan? A. Most of these loans are being serviced by ASC/Wells Fargo. The modification program that these loans are considered for is MAP. We will discussing this scenario …

Loan Modification Quiz Question 1

Q. A borrower has a debt-to-income ratio (DTI) of 80% and a current housing ratio of 60% (ratio of housing payment to income). If the borrower is eligible for a Chapter 7 bankruptcy, would filing the Chapter 7 help in getting a modification? A. If you had been tried this before the 2008 crisis, your answer would have been unquestionably …