Asked by: Peipei Jahnsmuller
business and finance bankruptcy

Can I sue my mortgage servicer?

21
As mentioned above, if your mortgage lendercommits negligence, you may sue your mortgage lender.Examples of this can include where they negligently fail toinclude terms in the loan agreement that were agreed to by bothparties, or if they breach their fiduciary duties.


Subsequently, one may also ask, can I sue a mortgage lender?

If you're like many homeowners fighting foreclosure, youmay have wondered if you can sue your mortgagelender. It's happened with loan origination, servicing, and inthe foreclosure process. If you can't sue for that,then what in the world can you sue for? Technicallyspeaking, you can sue.

Similarly, how do I file a complaint against a mortgage lender?
  1. Complain to the Better Business Bureau. The Better BusinessBureau, or BBB, is a nonprofit company that offers accreditationfor businesses.
  2. Talk to the State Regulatory Board.
  3. Ask the Attorney General to Investigate Violations.
  4. Report Problems to HUD.
  5. File a Complaint With the Federal Reserve.
  6. Report Fraud to the FBI.

Considering this, can I sue my mortgage company for predatory lending?

Sue the Lender If your predatory loan was a mortgage,you can collect up to twice the sum of financecharges your mortgage company levied against you. Althoughthe TILA is federal law, your state's laws also comeinto play when filing a civil suit.

Who regulates mortgage servicers?

The Federal Reserve's power to regulate thebanking industry also extends to the mortgage lendingindustry. The U.S. Department of Housing and Urban Development(HUD), through the Federal Housing Administration (FHA),regulates FHA lending practices.

Related Question Answers

Regine Areu

Professional

What is a notice of error?

A qualified written request that asserts an errorrelating to the servicing of a mortgage loan is a notice oferror for purposes of this section, and a servicer must complywith all requirements applicable to a notice of error withrespect to such qualified written request.

Valdir Gerhard

Professional

What is a predatory mortgage loan?

Predatory lending is any lending practicethat imposes unfair or abusive loan terms on a borrower. Itis also any practice that convinces a borrower to accept unfairterms through deceptive, coercive, exploitative or unscrupulousactions for a loan that a borrower doesn't need, doesn'twant or can't afford.

Massinissa Martin Peñasco

Professional

Why would you be denied a loan modification?

The most common reason that loan modificationrequests are denied are incomplete applications. Ifyou leave out a single signature or loan number, thelender will deem your entire applicationincomplete.

Dimitrinka Johannesmann

Explainer

How much is a mortgage attorney?

In most states, it's up to you whether to hire your ownlawyer. Real estate attorney fees vary. Some chargeby the hour with rates ranging from $150 to $350 per hour, whileothers offer a fixed rate to conduct a real estate closing. Expectto pay $500 to as much as $1,500 if you hire anattorney.

Mushegh Harries

Explainer

Can you sue a bank for stress?

If you have a dispute with a bank, youcan't file a lawsuit in court in most situations under US law.However, for some minor disputes you may be able tosue in small claims court. You can also file acomplaint against the bank with state or federal regulatoryagencies.

Anastasi Lupachev

Explainer

Can you sue a lender for negligence?

Can You Sue a Mortgage Lender for Negligence? Asmentioned above, if your mortgage lender commitsnegligence, you may sue your mortgagelender. Examples of this can include where theynegligently fail to include terms in the loan agreement thatwere agreed to by both parties, or if they breach their fiduciaryduties.

Abdeljabbar

Pundit

Can a mortgage lender back out after closing?

Lender Commitments When your lendercommits to fund a mortgage or refinance, that approvalusually comes with several conditions. After ClosingAlthough it's rare, it is even possible for your lender topull a refinance loan after closing.

Ebonie Rotteken

Pundit

Does a lender have a fiduciary responsibility?

As a general rule, in most states banks do notowe a fiduciary duty to customers. There are exceptions,however. There is a popular misconception that lenders owe afiduciary duty to their customers.

Mari Weiszgerber

Pundit

What is an example of predatory lending?

Predatory lending is a term typically used todescribe unconscionable lending practices where a borroweris provided with an unfair loan. Some common examples ofpredatory loans are negative amortization loans,adjustable rate mortgages, high interest mortgages, and balloonpayment loans.

Seema Jungle

Pundit

What interest rate is predatory lending?

Predatory lending is the practice of overcharginga borrower for rates and fees, average fee should be 1%,these lenders were charging borrowers over 5%. Consumerswithout challenged credit loans should be underwritten withprime lenders.

Josepa Benoit

Pundit

What is an illegal interest rate?

A legal rate of interest is the highestrate of interest that can be legally charged on anytype of debt, for which a lender must adhere to. The limit is setto prevent lenders from charging borrowers excessive interestrates.

Farooq Curras

Teacher

How can I get out of a predatory mortgage?

How to Get Out of a Predatory Mortgage
  1. Confirm that your mortgage is, in fact, predatory.
  2. Invoke your three-day right of recision if your loan is veryrecent.
  3. Check your papers.
  4. Consult an attorney and file a lawsuit, if you think yourlender has violated TILA.
  5. Refinance to favorable terms as soon as you can.

Edelweiss Loevsky

Teacher

Is there a statute of limitations on predatory lending?

If you signed the loan more than a few years ago,there is a good chance that the statute oflimitations—the time limit to bring a lawsuit—hasexpired. This is not always the case, but most of the lawsuits forpredatory lending must be brought within 1 to 4 years,depending on the law violated.

Josphine Nell

Teacher

Can mortgage insurance be Cancelled?

To remove PMI, or private mortgage insurance, youmust have at least 20% equity in the home. You may ask the lenderto cancel PMI when you have paid down the mortgagebalance to 80% of the home's original appraised value. When thebalance drops to 78%, the mortgage servicer is required toeliminate PMI.

Jamaal Corigo

Teacher

What is the difference between a mortgage banker and a mortgage broker?

A mortgage banker works for a bank or similarlending institution which actually provides you the money for theloan. A mortgage broker doesn't represent one institution,but works with many to shop for a loan for a specific individual.The broker is a middleman between you and thelender.

Eztizen Nacenta

Reviewer

What is risk based financing?

Risk-Based Financing. Risk-basedfinancing determines what interest rate you will pay,based on your credit score. "Risk-based"financing says you pay higher rates if your risk ofnot doing what you say is higher.

Josilene Guthoff

Reviewer

When you apply for a mortgage the law protects you from discrimination on the basis of what?

Federal law protects every homebuyer looking fora mortgage loan against discrimination on the basisof race, color, national origin, religion, sex, marital status,age, receipt of public assistance funds, familial status (havingchildren under the age of 18), handicap, or exercising your rightsunder other consumer

Pamelia Hasparren

Reviewer

Who do I file a complaint with against a bank?

The Federal Reserve urges you to file a complaintif you think a bank has been unfair or misleading,discriminated against you in lending, or violated a federalconsumer protection law or regulation. You can file acomplaint online through the Federal Reserve's ConsumerComplaint Form.

Wm Kneihsl

Reviewer

What governmental consumer protection agency or agencies can you turn to for help?

Government Agencies That Can Help You with ConsumerComplaints
  • The Federal Trade Commission. The Federal Trade Commission, orFTC, was established in 1914 to promote consumer protection andcompetition among businesses.
  • The Federal Communications Commission.
  • The Consumer Financial Protection Bureau.
  • State-level agencies.

Co-Authored By:

EveryThingWhat Staff Editor

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27th May, 2020

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