Mortgage Lenders Cringe at Substantial Foreclosure Litigation Costs Under QM

Mortgage lenders cringe at substantial litigation costs under QM

Mortgage bankers cringed at the latest litigation cost estimates they could face should the Consumer Financial Protection Bureau craft the Qualified Mortgage rule without a safe harbor.

According to a memo from financial law firm Ballard Spahr to the Mortgage Bankers Association, more challenges would make it to trial under the alternative rebuttal presumption clause.

Based on 76 cases in which the firm represented lenders in similar situations, the average attorney fee for when a case is dismissed totaled $26,000. This goes up to $84,000 under a summary judgment. If it goes to a trial, fees can climb as high as $155,000, Ballard Spahr said.

Rest here…

Copy of the letter to the MBA below…



MBA Letter

One Response to “Mortgage Lenders Cringe at Substantial Foreclosure Litigation Costs Under QM”
  1. Nancy says:

    Hello, do any of you know how the REMIC Report written by Neil Garfield is upheld in the State of Maine?

    Our mortgage was with IndyMac Bank FSB, however quite sometime before our foreclosure IndyMac ceased to be a bank and went to OneWest Bank FSB. IndyMac at that point became a servicer. However, the bank that foreclosed on us was IndyMac Bank FSB (Illegal). Shortly after that Deutsche Bank managed to get their name as the bank that foreclosed. My retirement home was foreclosed and sold last September by Deutsche Bank while in litigation with us disbuting Deutsche Bank never had the right to foreclose either. This our attorney found out the day he went to court to argue my casethat my home had been sold.

    the Judge did not vacate the foreclosure and we have requestd an appeal, but understand it is unlikely the Judge with over turn his own ruling.

    My Mortgage was written up into Certificates before our closing. As soon as we closed our Mortgage was securitizied, and went directly MERS our Servicer is IndyMac Mortgage Servicer. Our Master Servicer is Deutsche Bank, who claims they have my original Mortgage. This I strongly disbelieve and have since day one. I understand from the REMIC report , my mortgage/note can be either stock or a mortgagee/note not not either….and can never go back to a mortgage after being made into stock.

    I thought perhaps a few of you may have gone through this in Maine and would know how much of the REMIC report will apply to my case.

    Thanks for listening,


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