Buried in The Helping Families Save Their Homes Act of 2009, which the President signed into law yesterday, is an amendment to the Truth in Lending Act (TILA) that calls for a notice to the consumer when a ‘mortgage loan’ is transferred or assigned. The provision appears to be effective immediately, and violations are subject to TILA liability.
The text of the provision follows:
SEC. 404. NOTIFICATION OF SALE OR TRANSFER OF MORTGAGE LOANS. (a) IN GENERAL.—Section 131 of the Truth in Lending Act (15 U.S.C. 1641) is amended by adding at the end the following: ‘‘(g) NOTICE OF NEW CREDITOR.— ‘‘(1) IN GENERAL.—In addition to other disclosures required by this title, not later than 30 days after the date on which a mortgage loan is sold or otherwise transferred or assigned to a third party, the creditor that is the new owner or assignee of the debt shall notify the borrower in writing of such transfer, including— ‘‘(A) the identity, address, telephone number of the new creditor; ‘‘(B) the date of transfer; ‘‘(C) how to reach an agent or party having authority to act on behalf of the new creditor; ‘‘(D) the location of the place where transfer of ownership of the debt is recorded; and ‘‘(E) any other relevant information regarding the new creditor. ‘‘(2) DEFINITION.—As used in this subsection, the term ‘mortgage loan’ means any consumer credit transaction that is secured by the principal dwelling of a consumer.’’. (b) PRIVATE RIGHT OF ACTION.—Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended by inserting ‘‘subsection (f) or (g) of section 131,’’ after ‘‘section 125,’’.
THIS OPENS UP A HUGE NEW AVENUE OF ATTACK AGAINST FORECLOSURE AND
“None of the named defendants have the right or authority to foreclose under (state law) or by contractual right,” he says in the lawsuit.
Published: Tuesday, May 11, 2010
By Jameson Cook, Daily Tribune Staff Writer
Lawsuits filed in maneuver to try to stop foreclosure, recover losses from alleged overpayments, improper approval.
About 90 homeowners in Oakland and Macomb counties have accused more than two dozen banks of deceptive lending and other wrongdoing by approving loans far exceeding the plaintiffs’ ability to pay and charging excessive fees, among other allegations.
The accusations are levied in two lawsuits filed in each county’s circuit court within the past two weeks through the Troy-based Michigan Loan Compliance Advisory Group Inc., created to help homeowners in trouble with their mortgages. A third lawsuit with about 10 plaintiffs is expected to be filed in Wayne County Circuit Court this week.
The lawsuits represent an emerging tactic nationwide for struggling homeowners in their attempt to fight off potential foreclosure and gain relief on stifling mortgages from some of the country’s largest banks.
Lets not act surprised. New headache to some that have to actually work and explain the package in detail. Ah those days of zooooming by… sign here, initial here are long gone.
That YSP is just a fee we can add to your mortgage…”We can roll it into the mortgage so you don’t need to bring any $$ to the table”.
WASHINGTON – April 26, 2010 – As the real estate industry makes the transition to a revised Good Faith Estimate (GFE) launched by the Department of Housing and Urban Development (HUD) earlier this year, feedback from lenders and consumers suggests that the new process may be confusing and impractical.
Closings have been dragged out as brokers and title insurers strive to understand the longer, more detailed document and explain it to home buyers; and some lenders have been forced to create their own forms in an effort to explain what is reflected in the GFE.
The GFE changes are well-intentioned, aiming to provide new transparency on costs to buyers, who have long complained of hidden fees; better allow comparison shopping between lenders; prevent kickbacks and referral fees; and make lenders more accountable for mistakes or misrepresentations.
But, says Pava Leyrer of Heritage National Mortgage in Grandville, Mich., “borrowers are looking at this form and saying, ‘This doesn’t make any sense for us, why can’t we have something that’s more simple?'”
Among the areas causing confusion are previously itemized costs that are now are lumped together; the inclusion of some seller-paid costs, like title insurance fees, that inflate the estimate by thousands over what the borrower would actually pay at settlement; and the absence of a total monthly payment estimate on the GFE, which borrowers must now calculate on their own by referring to other documents.
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