A lawsuit filed in federal court alleges that a third-party mortgage servicer acted illegally when it foreclosed on multiple properties in Rhode Island.

The suit, filed in U.S. District Court on behalf of 11 plaintiffs who owned homes across the state, claims that defendant Caliber Home Loans “failed to obtain a third party servicing license” and was not permitted by law to “act on behalf of Defendant U.S. Bank in order to notice, publish, and invoke the statutory power of sale” on the plaintiff’s properties.

Attorney Todd Dion, who filed the suit, maintains that Caliber was “not permitted by applicable law and the mortgage contracts to execute all affidavits and foreclosure deeds on behalf of U.S. Bank.”

U.S. Bank is also named as a defendant in the suit.

According to national data, lenders repossessed 3,938 U.S. properties through completed foreclosures in August 2022, up 28% from last month and up 59% from 2021.

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