Mortgage Fraud

The Consumer Financial Protection Board(CFPB) recently announced that it has ordered mortgage lender Amerisave Mortgage Corp., to pay $19.3 million for engaging in a bait and switch fraud affecting borrowers who made applications for mortgage loans from this lender.

The fraud occurred at numerous points in the borrower’s interaction with this lender. It started when the borrower first visited the company’s website and requested a quote, the quote which they received was based on an 800 FICO score. Additionally inaccurate rates and terms were posted on the company’s Website. At closing additional and unexpected fees were added to the borrower’s charges.

Ocwen is back in the news again. The New York Department of Financial Services recently reported that when has been collecting fees from distressed homeowners for force-placed Insurance through an affiliated company which practice is forbidden in New York State.

If you are considering the purchase of a home or a refinance of a home mortgage please make certain to consult with and review the documents with an attorney.

Should you require assistance with the attorneys in our office have substantial experience reviewing mortgage documents and would be pleased to assist you.

We can be reached at 732-752-8834.

CONSUMER FINANCIAL PROTECTION BUREAU UNDER ATTACK

You may or may not remember that a significant part of the Dodd-Frank Financial reform legislation which came out of the financial crisis was the creation of a Consumer Financial Protection Bureau.   The mission of this new agency was to review the financial products offered to consumer, for example, credit cards and mortgage loans and to make certain that the disclosures about these products were fair and easy for the consumer to understand.  The Bureau was also authorized to bring legal action against those institutions whose products were deceptive or which harmed consumers.  The President’s first choice to lead this new Bureau was Professor Elizabeth Warren of Harvard.  The Republicans in the Senate announces that her nomination would be dead on arrival.  She was never nominated.   Currently the new Bureau has no director and the Republicans in the Senate have announced that they intend to block any nominee and plan to introduce legislation to reduce the powers of the new Bureau.

If  left unregulated, the wizards of Wall Street and the executives of the “too big to fail banks” will come up with more dangerous and harmful products to be foisted onto the American public.

The financial industry has proven by their actions, time and time again, they they do require adult supervision or they will cause additional unmeasurable harm to individuals, families and the economy.

This is an important issue for all American Consumers.  Contact your representatives in Washington and tell them what you think about the efforts to reduce the powers of this new Bureau and the needless delays in getting this new Bureau functional.