Consumers Financial Protection Bureau Cracking Down on Dual Processing

Delinquent Mortgagees Entitled to Protection

Mortgage companies engage in the common practice of starting or continuing the legal mortgage foreclosure process during the time the company is negotiating with the homeowner for relief.

The Consumer Financial Protection Bureau has recently allowed homeowners to sue mortgage companies who continue the foreclosure process during these negotiations, such as review of a request of loan modification. Many foreclosure proceedings are processed through the courts without notice of the federal regulations of the Consumer Financial Protection Bureau prohibition.

Homeowners now have a right to save their home and protect themselves from reckless mortgage companies who do not comply with these Federal Regulations.  The correct procedure is for the courts to hold up the process while the outcome of the mortgage modification is determined by the mortgage company.  Many mortgage companies will still attempt to push the foreclosure through without notifying the court of the pending mortgage modification request.

Mortgage companies are now on notice that they will be subject to liability if they continue this course of action.  There are at present cases pending before various state and federal courts in various states to correct the violation of the Consumer Financial Protection Bureau Federal Regulations.

Posternock Apell, PC is here to help with real estate transactions, as well as consumers facing with financial distress.  Please contact us with additional questions.