Earlier this week, Mandelman Matters posted an interview with Mark Zanides and Kenneth Gertz, announcing the pair’s plans to sue mortgage servicers on behalf of California homeowners they say were defrauded.
These two attorneys, both of whom attended Operation Strike Back in Vegas earlier this year, have impressive backgrounds, and they’ve spent months researching the claims they plan to raise against mortgage servicers who haven’t played fair in the modification process. In the interview, Mark Zanides aptly calls mortgage fraud “the biggest financial swindle in the history of the world.” As a former federal prosecutor, he calls it “stunning” that the government has done nothing to prosecute the guys responsible.
The issue isn’t simply that qualified borrowers aren’t getting loan modifications: Gertz points out that virtually every bank claims on its website that they’re willing to work with borrowers, inviting them to enter the modification process and giving them false hope. And, of course, we all know that these servicers string borrowers along with trial modifications and requests for additional documents (and claims that submitted documents haven’t been received), racking up fees along the way such that when the modification is ultimately denied, the homeowner is further in arrears than ever–often further than he has any hope of curing.
Mandelman’s note on the cases:
If you’re a homeowner who applied for a loan modification and you went through a process that felt like it should be illegal… well, it probably was and I recommend that you call Mark or Ken and talk to them about what they’re doing.
Maybe there’s going to be some justice in the world after all.
We certainly hope so. We also hope that this is only the beginning, and that other highly-qualified consumer lawyers take up this fight in other states.