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Mortgage Servicing Lawsuits 2007 Mortgage Litigation Report

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Freddie Mac
U.S. District Court, Texas
.
Complaint alleging that servicer stopped making payments on borrowers’ insurance premiums or periodic real property tax liabilities, and refused to turn over loan files
.
Credit Suisse First Boston Mortgage Capital
Bankruptcy Court
.
Creditors seek transfer to them of certain servicing files, servicing rights, and custodial and escrow account funds on the grounds of breaches of contracts and agreements
.
Morgan Stanley Mortgage Capital Holdings
Bankruptcy Court
.
Creditors seek transfer to them of certain servicing files, servicing rights, and custodial and escrow account funds on the grounds of breaches of contracts and agreements
.
Jacalyn S. Nosek
U.S. Bankruptcy Court, District of Massachusetts
$750,000 for punitive and emotional distress damages, $1 for RESPA violations (on appeal)
Federal judge rules against lender for improper posting of debtor’s payments to only the oldest outstanding pre-petition delinquencies, despite the fact that debtor was current
.
U.S. Trustee
U.S. Bankruptcy Court for Western Pennsylvania
.
Investigation by a U.S. trustee, in ten cases consolidated into one, to determine, among other things, whether Countrywide inflated the amount it is owed on bankruptcy claims
.
Countrywide Home Loan, Inc. Sharon Diane Hill U.S. Bankruptcy Court, Pennsylvania . Countrywide accused of fabricating escrow letters to show that a borrower who was facing foreclosure and had filed bankruptcy owed nearly $5,000 in payments. .
Countrywide Home Loans Servicing LLP Timothy J. and Jessica Kay Lauricella U.S. District Court in Sherman, Texas . Servicer accused of overcharging interest on mortgage loans after they were paid in full .
EMC Mortgage Corp., Bear Stearns . U.S. District Court, Connecticut . Bear Stearns Companies and its servicing subsidiary accused of charging frivolous fees, losing payments and mismanaging escrow accounts on loans with nonprime minority borrowers in violation of the Fair Housing Act and Civil Rights laws .
NetBank

another article

DLJ Mortgage Capital . $4 million DLJ sues subservicer NetBank for $4 million over the failure to forward borrower payments, neglecting to pay mortgage insurance on loans and refusing to comply with requests for information regarding the payments and proof of mortgage insurance .
Option One Mortgage Corp. . . . Borrowers spent over a year to stop delinquency notices and correct erroneous credit reporting from a new servicer even though the loan had been refinanced and paid off by a new lender Islam v. Option One Mortgage Corp
Personal Financial Management and Image Masters Inc. (aka OPFM Inc.), IndyMac Financial Services Corp., National City Mortgage Inc., Provident Funding Group Inc., SunTrust Mortgage Inc., Wachovia Mortgage Corp., Washington Mutual, Wells Fargo Home Mortgage Inc. . U.S. District Court, Eastern District of Pennsylvania . Borrowers were promised that by obtaining home equity loans and giving the proceeds to OPFM to invest, their loan balances would pay down faster but when OPFM declared bankruptcy borrowers learned they would probably have to make significantly higher mortgage payments than what they had been making in the past Jones v. ABN AMRO Mortgage Group, Inc., et al.
Provident Bank of Maryland Andrew Bednar . . Bank’s collection of any charge conditioned on prepayment was a prohibited prepayment charge Bednar v. Provident Bank of Maryland
Temple-Inland Joey F. Soriano and Michael L. Bean Superior Court for the State of California, Los Angeles County . Lender faces class action lawsuit from as many as 40,000 California borrowers who say the lender failed to clear the title to their homes when they paid off their loans or refinanced .
Wells Fargo . . . Debtor, who was a certified public accountant, nor Wells Fargo’s own representative could fully understand or explain the accounting offered because Wells’ documentation was so confusing Jones v. Wells Fargo Home Mortgage

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