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Modifications Lawsuits – Fourth-Quarter 2011 Mortgage Litigation Index

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

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Date of Activity Link to Story
Ryan Visda na First District Court in Hempstead $11,000 Arrest of woman who operated National Recovery Processing. na na na Dec. 2011 www.mortgagedaily.com/LitigationForeclosureFirms011612.aspwww.mortgagedaily.com/LitigationForeclosureFirms011612.asp
Saxon Mortgage Services Inc. and/or Ocwen Loan Servicing LLC Florida borrowers na na Complaint filed. Vanselous, et al v. Saxon Mortgage Services Inc. and Ocwen Loan Servicing LLC 8:11-cv-02464 10/28/2011 n www.mortgagedaily.com/LitigationModification010912.asp
State of Ohio American Home Mortgage Servicing Inc. Court of Common Pleas Franklin County, Ohio na Settlement announced. American Home Mortgage Servicing Inc., Plaintiff/Counterclaim-Defendant, v. State of Ohio, et al., Defendants/Counterclaim-Plaintiffs. 09CVH-11-16491 2009 12/12/2011 www.mortgagedaily.com/LitigationModification010912.asp
Michael Kwasnik, The Law Firm of Kwasnik, Rodio, Kanowitz & Buckley P.C., Hope Now Modifications Federal Trade Commission U.S. District Court for the District of New Jersey $137,656 Agreed to settlement. The operation and its two principals were charged with falsely claiming to be part of the HOPE NOW Alliance, a non-profit, government-endorsed network. Federal Trade Commission v. Hope Now Modifications, LLC, Hope Now Financial Services Corp., also dba Hope Now Modifications, Nick Puglia, and Salvatore Puglia 1:09-cv-01204-JBS-JS, FTC File No. 092 3079 3/17/2009 Nov. 2011 www.mortgagedaily.com/LitigationForeclosureFirms112111.asp
Residential Relief Foundation and Silver Lining Services and owners James Holderness, Bryan Melanson, Michael Valenti and Jillian Melanson, Mitigation America LLC and principal Dennis Strzegowski Federal Trade Commission U.S. District Court for the District of Maryland $11,009,306 2 settlements ban defendants from participating in mortgage assistance relief and debt relief industries. Most of judgment amount suspended. Federal Trade Commission, Plaintiff, v. Residential Relief Foundation Inc., Silver Lining Services LLC, Mitigation America LLC, James W. Holderness, Michael Valenti, Bryan J. Melanson, Jillian N. Melanson, and Dennis Strzegowski, Defendants 1:10-cv-3124-JFM, FTC File No. 1023234 Nov. 2010 9/28/2011 www.mortgagedaily.com/LitigationForeclosureFirms112111.asp
Law Offices of Perry and Associates LLC, Virginia attorney Michael A. Perry and Anthony Dolphus by the Maryland Department of Labor Maryland Department of Labor na $489,000 A civil money penalty was issued. The state also issued a proposed cease-and-desist order and required restitution. Defendants are accused of collecting up-front loan modification fees in violation of Maryland law. na na na 11/15/2011 www.mortgagedaily.com/LitigationForeclosureFirms112111.asp
Bank of America American Asset Corp. na na Plaintiff alleges defendant breached loan agreement, stopped funding loans and reneged on promises to do modifications. na na na na www.mortgagedaily.com/MctLawsuitBoa101811.asp
1st American Law Center, Gary Michael Bobel, Scott Thomas Spencer, Mark Andrew Spencer, Roger Trent Jones and Travis Corey Iverson na na $11,000,000 High-pressure sales tactics and “outright lies” were used to convince clients to fork over between $1,995 and $4,495 each. The defendants falsely claimed they had a team of attorneys who pre-screened clients and that they had a 98 percent success rate in obtaining modifications. Defendants pleaded guilty. na na na 12/16/2011 www.mortgagedaily.com/LitigationCriminal122011.asp
William Jeffrey Hutching na Court of Appeals of California, Fourth District, Division One $500,000 Defendant was convicted in connection with alleged deceitful practices related to foreclosure consulting and he was sentenced to 46 years prison. Defendant’s appeal was denied. THE PEOPLE, Plaintiff and Respondent, v. WILLIAM JEFFREY HUTCHINGS, Defendant and Appellant D057451 10/18/2011 na www.mortgagedaily.com/LitigationForeclosureFirms112111.asp
Stephen Andrew Easterly and Emanuel Percival na na na Defendants arraigned for collecting between $3,500 and $7,000 from borrowers seeking to avoid foreclosures or modify their loans na na na Aug. 2011 www.mortgagedaily.com/LitigationCriminal103111.asp
Alan David Tikal na Alameda County Superior Court na Owner of KATN Trust pleaded no contest and was found guilty of filing false documents and accepting advance fees on loan modifications. He was sentenced to 16 months prison plus restitution. People v. Alan David Tikal 165379A na 10/31/2011 www.mortgagedaily.com/LitigationForeclosureFirms112111.aspwww.mortgagedaily.com/LitigationForeclosureFirms011612.asp
Bank of America Corp.; Citibank, N.A., and CitiMortgage Inc.; GMAC Mortgage LLC; JPMorgan Chase Bank, N.A.; MERS and parent MERSCORP Inc.; and Wells Fargo Bank, N.A. Commonwealth of Massachusetts Superior Court Department of the Trial Court, Suffolk County na Complaint filed. Defendant accused of using fraudulent documents in the foreclosure process, filing foreclosures without having title to the loans and skirting state recording requirements and fees by utilizing MERS. Also at issue is their handling of loan modifications. Commonwealth of Massachusetts, Plaintiff, V. BANK OF AMERICA, NA., BAC HOME LOANS SERVICING, LP, BAC GP, LLC, JPMORGAN CHASE BANK, N.A:, CITIBANK, NA., CITIMORTGAGE, INC., GMAC MORTGAGE, LLC, WELLS FARGO BANK, N.A., MORTGAGE ELECTRONIC REGISTRATION SYSTEK INC and MERSCORP INC., Defendants Civ. A No. 11-4363 12/1/2011 na www.mortgagedaily.com/LawsuitMassForeclosures120111.asp
Community One Law Center and National Law Partners State of Indiana na na The two Florida firms allegedly charged as much as $2,500 in up-front fees but did nothing to help the borrowers. The two companies allegedly shared employees and files. na na 10/27/2011 na www.mortgagedaily.com/LitigationForeclosureFirms112111.asp
East Coast Fidelity LLC and Janice McCarthy Rhode Island Attorney General Peter F. Kilmartin  na na The state was alerted to the firm after receiving complaints from borrowers in Kentucky, New York and North Carolina about paying required up-front fees then hearing nothing back. na na 10/20/2011 na www.mortgagedaily.com/LitigationForeclosureFirms112111.asp
American Home Mortgage Servicing Inc. State of Ohio Cuyahoga County Common Pleas Court na Settlement in case alleging servicing abuses. State of Ohio, ex rel. Richard Cordray Attorney General of Ohio 615 W. Superior Ave., 11th Floor Cleveland, Ohio 44113-1899 Plaintiff, v. American Home Mortgage Servicing Inc. c/o Statutory Agent CT Corporation System 1300 E. 9th St. Cleveland, OH 44114.
CV 09 708888 11/5/2009 12/12/2011 www.mortgagedaily.com/SettlementAmericanHome121311.asp
Bank of America Corp. Joseph and Jennifer Woodruff  Franklin County Common Pleas Court, Ohio na Class action complaint filed. na na 12/17/2011 n www.mortgagedaily.com/LitigationModification010912.asp
Bank of America Corp. na U.S. District Court for the District of Massachusetts na BoA filed answer to complaint. In Re: Bank of America 1:10-md-02193-RWZ, MDL No. 2193 10/12/2010 12/12/2011 www.mortgagedaily.com/LitigationModification010912.asp
Bank of America Corp. State of Nevada U.S. District Court for the District of Nevada na BofA asked court to force state to prove that it and Countrywide in violation of original consent degree before amended lawsuit proceeds. State of Nevada v. Bank of America Corporation, et al. 3:11-cv-00135-RCJ (RAM) 8/30/2011 Oct. 2011 www.mortgagedaily.com/LitigationModification010912.asp
Chase Home Finance LLC Miriam Lord na na Defendant foreclosed on plaintiff in error, but sent notice to the address plaintiff already moved out of, leaving her unaware she should keep making payments, leading to another foreclosure and prompting plaintiff to sue. na na na na www.mortgagedaily.com/LitigationForeclosures110911.asp
Deutsche Bank National Trust Co. Mike Austin Court of Appeals of Arkansas $40,732 Appeals court ruled in favor of defendant because  plaintiff failed to timely plead a claim for unjust enrichment and it had a superior interest and it wasn’t unjustly enriched because of the repairs. na na na na www.mortgagedaily.com/LitigationTitle100911.asp
RBS Financial Products Inc. Commonwealth of Massachusetts Suffolk Superior Court $52,000,000 Assurance of discontinuance filed in settlement. Defendant was accused of financing, purchasing and securitizing residential loans that were presumptively unfair under Massachusetts’ Consumer Protection Act. na na na 11/28/2011 www.mortgagedaily.com/SetllementRbsMass112911.asp


Q3 2011 modification lawsuits

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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