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Modifications Lawsuits – Third-Quarter 2011 Mortgage Litigation Index Third-Quarter 2011 Mortgage Litigation Index

 

Modifications Lawsuits
Third-Quarter 2011 Mortgage Litigation Index
Actions tied to loan modifications and modification firms.

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Link to Story
Bank of America United States Treasury Department n/a $24,000,000 The Treasury Department censured Bank of America for not implementing HAMP well enough and withheld fees due to Bank of America as punishment. n/a n/a n/a www.mortgagedaily.com/MctBoa072311.asp
Community One Law Center; National Law Partners State of Indiana n/a n/a The State filed suit alleging fraudulent scheme to charge upfront fees to homeowners in exchange for bogus loan modification services. n/a n/a 8/24/2011 www.mortgagedaily.com/litigationforeclosurefirms092711.asp
Legal Home Loan Solutions; Federal Home Loan Solutions; Matevia Law Firm; Thomas C. Matevia State of Indiana n/a n/a The State filed suit alleging fraudulent scheme to charge upfront fees to homeowners in exchange for bogus loan modification services. n/a n/a 8/10/2011 www.mortgagedaily.com/litigationforeclosurefirms092711.asp
Saxon Mortgage Services, Inc. Deborah A. Pandit; Ranujoy D. Pandit, as lead Plaintiffs U.S. District Court for the Eastern District of New York n/a Ranujoy and Debora Pundit, on behalf of a class of complainants, allege that the Defendant home-loan servicing company intentionally misused the federal loan modification process by routinely and systematically misleading homeowners in making monthly ‘trial’ payments … and into repeatedly sending and resending documents in doomed attempts to qualify for lower monthly payments. Pandit, et al. v. Saxon Mortgage Services, Inc. 2:2011cv03935 8/15/2011 www.mortgagedaily.com/MctLawsuitSaxon082011.asp
Golden West Financial Corp;, World Savings Bank, FSB; World Savings and Loan Association; World Mortgage Company;  World Savings Bank SSB; World Loan Company, Home Loan Experts; Wachovia Corp.; AmNet Mortgage, LLC; American Mortgage Network, LLC; Wachovia Mortgage, FSB; Wachovia Bank, FSB; Wachovia Bank, N.A. The State of Connecticut, by and through Connecticut Attorney General George Jepsen n/a $741,465 Connecticut AG has reached a settlement with Wells Fargo over payment-option adjustable-rate mortgages that it inherited with its acquisition of Wachovia Corp.  The agreement resolves allegations of deceptive marketing on option ARMs.   n/a n/a 8/17/2011 (settlement signed) www.mortgagedaily.com/SettlementWellsCT081711.asp� 
Ocwen Financial Corp.; Goldman Sachs Bank USA; Litton Loan Servicing, LP New York Department of Financial Services and Banking Department New York Department of Financial Services and Banking Department n/a The Superintendant of Financial Services announced that the Department of Financial Services and Banking Department has entered into an agreement with Ocwen, Goldman Sachs, and Litton Loan Servicing, requiring Goldman Sachs to write down principal on NY mortgages as a condition of selling its mortgage servicing subsidiary.  Goldman acquired Litton in 2007 now seeks to sell Litton to Ocwen in a $264 million all-cash transaction.  As part of the transactions, all three firms will adhere to “new mortgage servicing practices.” Agreement on Mortgage Servicing Practices n/a 9/1/2011 www.mortgagedaily.com/SettlementNY090111.asp 
Christopher Dixon City of San Diego San Diego Superior Court $7,500 Owner of Nations Mortgage Solutions, Christopher Dixon, pleaded guilty to acting as a real estate agent without a license in connection with loan modifications.  n/a n/a n/a www.mortgagedaily.com/litigationcriminal072511.asp
Christopher S. Godfrey; Dennis Fischer; Vernell Burris Jr.; Brian M. Kelly United States U.S. District Court for the District of Massachusetts $3,000,000 An indictment against former employees of Home Owners Protection Economics Inc. alleges that defendants collected over $3 million from borrowers whom they misled in connection with the Home Affordable Modification Program. United States v. Godfrey, et al. 11-CR-10279 8/9/2011 www.mortgagedaily.com/LitigationCriminal082411.asp�  
Joseph Yorkus; James Bartczak Nevada Attorney General  Eighth Judicial District Court of Clark County Nevada $383,176 Yorkus was sentenced to 48 months that will be served concurrently with another conviction. Allegedly sent fake transfer-of-servicing notices to some of Bank of America’s Nevada borrowers so that they could collect payments themselves through a sham company. Defendants also accused of charging for modification services through several businesses but not providing services.   n/a n/a n/a www.mortgagedaily.com/LitigationCriminal082411.asp�  
Ronald Rodriguez; Zoar Rodriguez; Berta M. Cabrera; Kelly Rodriguez Florida Attorney General Pam Bondi n/a $750,000 Defendants were arrested for allegedly collecting modification fees through their company Best Value Homes Inc., but not delivering promised loan modification services.  Their 500 victims reportedly lost $750,000 in the scam. n/a n/a 8/17/11 www.mortgagedaily.com/LitigationCriminal082411.asp�  
AH Mortgage Acquisition Co. d/b/a American Home Mortgage Servicing Inc.; Block Financial Corp., H&R Block Mortgage Corp.; H& Block, Inc.; Option One Mortgage Corp. Commonwealth of Massachusetts U.S. District Court of Massachusetts $124,800,000 A $125 million settlement was reached by Option One Mortgage Corp. resolving claims of unfair and discriminatory lending practices.  Commonwealth of Massachusetts v. H&R Block, Inc. et al. 1:2008cv11225 7/18/2008 www.mortgagedaily.com/MctSettlementSandCanyon080911.asp
Avatar Realty Group; Arthur Monroe; Monroe Realty Corp. State of Illinois Cook County Circuit Court  $37,000 The State of Illinois filed suit alleging fraudulent scheme to charge upfront fees to homeowners in exchange for bogus loan modification services. State of Illinois v. Avatar Realty Group, Inc.  n/a 7/27/2011 www.mortgagedaily.com/litigationforeclosurefirms092711.asp
Christopher Mallett Federal Trade Commission U.S. District Court for the District of Columbia n/a Complaint filed alleging Mallett operated misleading website offering foreclosure relief services. FTC v. Mallett  No. 11-civ-80155 n/a www.mortgagedaily.com/litigationforeclosurefirms092711.asp
Diversified Real Estate Consultants, LLC; Dream Management USA, LLC; Precision Processing Solutions Int’l. LLC; Daniel Depasquale State of Ohio Cuyahoga Court of Common Pleas $36,000 The State filed suit alleging fraudulent scheme to charge upfront fees to homeowners in exchange for bogus loan modification services. State of Ohio ex rel. Attorney General Michael Dewine v. Diversified Real Estate Consultants, LLC et al. No. cv11 759351 7/12/2011 www.mortgagedaily.com/litigationforeclosurefirms092711.asp
Homesafe America,United Legal Solutions na Nassau County Supreme Court – New York na Temporary restraining order issued. na na na www.mortgagedaily.com/litigationforeclosurefirms092711.asp
Save My Home Corp.; Save My Home Now Inc.; Express Home Solutions; Home Preserve Law Group Ayana Rush; Gul Magsood; Angel Osmanzai; Rahim Maqsood; Mohammed Shukran; Rita Idavoy; Rebecca Verna; Brian Verna; Ariel Cross-Edwards Nassau County Supreme Court – New York $3,000,000 Deceptive Trade Practices Act claim filed against foreclosure relief industry defendants; temporary restraining order in place precluding defendants from further operations. Rush v. Save My Home Corp. n/a 7/5/11 www.mortgagedaily.com/litigationforeclosurefirms092711.asp
Skyline Capital, Inc.; Rahul Shah  State of Illinois Cook County Circuit Court  $23,000 The State of Illinois filed suit alleging fraudulent scheme to charge upfront fees to homeowners in exchange for bogus loan modification services. State of Illinois v. Skyline Capital, Inc.  n/a 7/27/2011 www.mortgagedaily.com/litigationforeclosurefirms092711.asp
U.S. Mortgage Funding, Louis Gendason  Federal Trade Commission U.S. District Court for the Southern District of Florida na Gendason added as a defendant Federal Trade Commission, Plaintiff v. U.S. Mortgage Funding, Inc., Debt Remedy Partners, Inc., Lower my Debts.com, LLC, David Mahler, individually and as an officer of Debt Remedy Partners, Inc. and a former officer of U.S. Mortgage Funding, Inc., and John Incandela, Jr., aka Jonathan Incandela, Jr., individually and as a former officer of U.S. Mortgage Funding, Inc. and a manager of Lower My Debts.com, LLC, and Jamen Lachs, individually and as an officer of U.S. Mortgage Funding, Inc., Defendants. Case No. 11-Civ-80155, FTC File No. 102 3146  www.mortgagedaily.com/litigationforeclosurefirms092711.asp
National Relief Group State of West Virginia Kanawha County Circuit Court n/a The State filed suit alleging fraudulent scheme to charge upfront fees to homeowners in exchange for bogus loan modification services. n/a n/a 7/14/2011 www.mortgagedaily.com/litigationforeclosurefirms092711.asp
Premier Legal Advocates; Brian Pascal State of Indiana Shelby County Court  n/a The State filed suit alleging fraudulent scheme to charge upfront fees to homeowners in exchange for bogus loan modification services. n/a n/a 7/27/2011 www.mortgagedaily.com/litigationforeclosurefirms092711.asp


Q2 2011 modification lawsuits

Q1 2011 modification lawsuits

Q4 2010 modification lawsuits

Q3 2010 modification lawsuits

Q2 2010 modification lawsuits

Q1 2010 modification lawsuits


Q4 2009 modification lawsuits


Q3 2009 modification lawsuits


Q2 2009 modification lawsuits

 

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