New Class Action Lawsuit Alleges Specialized Loan Servicing (SLS) Improperly Processes Loan Modifications
A class action lawsuit filed on October 7, 2016 alleges Specialized Loan Servicing (SLS) improperly processed loan modification applications for customers in California that often led to overpayments on the loan and unjust foreclosures of the borrower’s home.
To stem the tide of defaults and foreclosures after the Great Recession of 2007 and 2008, the U.S. Consumer Financial Protection Bureau (CFPB) implemented a series of guidelines designed to force banks and mortgage servicers to process loan modification requests quickly, accurately, and transparently. The guidelines went into effect in January 2014 and give homeowners the right to sue mortgage servicers who violate them.
This class action lawsuit alleges that SLS violated the U.S. Consumer Financial Protection Bureau’s new guidelines and failed to bring its system for processing loan modification applications into compliance. Specifically, the lawsuit alleges that SLS, among other things:
(1) Failed to timely respond to loan modification applications;
(2) Failed to inform borrowers what information was missing in order to process their loan modification application;
(3) Falsely told borrowers their application was missing information that had already been provided on numerous occasions;
(4) Denied borrowers’ loan modification requests without an appropriate explanation; and
(5) Wrongfully threated foreclosure while a borrower’s application was still under review.
Margarette Smith, an 88-year old homeowner and the named plaintiff in the lawsuit, experienced all of the above behavior as she attempted to comply with the requirements set forth by SLS in numerous letters each month. Despite providing SLS with all the paperwork requested, often several times, Ms. Smith was still denied a proper loan modification. Consequently, the inability to modify her mortgage means Ms. Smith may lose her home.
We are interested in hearing from consumers nationwide. Homeowners who have applied for a home loan modification with SLS since January 2014 and were denied a modification, or believe their application was processed improperly, may contact Tycko & Zavareei for a free consultation by calling Kristen Sagafi at 510-254-6810 or Lorenzo Cellini at 202-417-3660 or by using this link.
Tycko & Zavareei LLP is a bicoastal law firm with offices in Washington, D.C. and Oakland, CA, and has a long, successful record of litigating complex cases. The firm routinely handles large and complex matters throughout the country, advocating on behalf of individuals fighting for their civil rights, employees asking for their rightful wages, consumers seeking redress for unfair business practices, whistleblowers exposing fraud and corruption, and non-profit entities and businesses facing difficult litigation. www.tzlegal.com.
SOURCE Tycko & Zavareei LLP
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Eastern savings Bank talked to me about it. However, I was told I was being foreclosed. I never found out who held my mortgage until after foreclosure. Then found out Credit Suisse put it in a trust with Freemont. Then Fremont told me to look for another mortgage company as my interest rate was going up. Later I found out they were going out of budiness. No filing of Credit Suisse at clerks office.
Promises broken. Like Chief Joseph said many moons ago. “They made many promises, they promised to take our land–They did”.
There was no help anywhere!! They lied about everything.
how do i join this law suit
i also can forward to my lawyer
If you want to save your home don’t waste time filing for a loan modification with Citimortgage they give false hope. They request documents after document and it is never enough while you are falling farther behind. I have been denied four times. They later sent out an letter offering to buy my home. I’ll
I also have been poorly treated by these people
now in 4 closure
I need a someone to help me go after these crooks
They would never tell us who owns my loan until the closure papers came
Why can we get together to fight these people
Please help
Thank you
I am a loan officer with Midwest Equity Mortgage in Oakbrook Illinois. I have a client that has tried numerous times to refinance their loan, and have been given the run-around by SLS about not being able to subordinate their 2nd mortgage. My processing department has been experiencing the same run-around. How can we find out sho owns this loan, and how do we contact them in order to get proper documentation?
I have experienced all 5 of these issues listed. It is an excessively long process intended to get you to give up so that they will sell your home.