It isn’t easy to talk about filing for bankruptcy or losing your home, but as Montana’s Legislature moves to make it more difficult for homeowners to sue the mortgage industry for deceptive practices, tongues are loosening up.
Montana Senate lawmakers have passed two bills to undo a landmark court ruling that benefited homeowners who sued big banks for mishandling mortgages. Such lawsuits often involve big banks making multiple fraudulent statements that lead distressed borrowers to assume their homes are being saved, while they’re actually sliding into foreclosure.
One of the bills would let banks off the hook for fraudulent statements. The other would limit the damages borrowers can collect.