A foreclosure defense law firm in Miami is reportedly planning on taking on lenders that it claims are violating federal mortgage servicing rules.
Jacobs Keeley partners said they’re prepared to sue against lenders that continue to pursue foreclosure sales while clients await decisions on mortgage modifications, according to the published reports.
The rules state that mortgage lenders must confirm each applicant can afford a mortgage before issuing a loan. Lenders also must comply with new protections for struggling homeowners, including rules that could prevent foreclosure sales if borrowers take steps to modify their mortgages, the Daily Business Review reported.
Attorneys from Jacobs Keeley say that mortgage servicers are benefitting from the region’s clogged foreclosure dockets and judges’ attempts to cut down on the backlog despite the rules. [Daily Business Review] — Katherine Kallergis