OAKLAND, Calif., Oct. 13, 2016 /PRNewswire/ -- A class action lawsuit filed on October 7, 2016 alleges Specialized Loan Servicing (SLS) improperly processed loan modification applications for customers in California that often led to overpayments on the loan and unjust foreclosures of the borrower's home.
To stem the tide of defaults and foreclosures after the Great Recession of 2007 and 2008, the U.S. Consumer Financial Protection Bureau (CFPB) implemented a series of guidelines designed to force banks and mortgage servicers to process loan modification requests quickly, accurately, and transparently. The guidelines went into effect in January 2014 and give homeowners the right to sue mortgage servicers who violate them.
This class action lawsuit alleges that SLS violated the U.S. Consumer Financial Protection Bureau's new guidelines and failed to bring its system for processing loan modification applications into compliance. Specifically, the lawsuit alleges that SLS, among other things:
(1) Failed to timely respond to loan modification applications;
(2) Failed to inform borrowers what information was missing in order to process their loan modification application;
(3) Falsely told borrowers their application was missing information that had already been provided on numerous occasions;
(4) Denied borrowers' loan modification requests without an appropriate explanation; and
(5) Wrongfully threated foreclosure while a borrower's application was still under review.
Margarette Smith, an 88-year old homeowner and the named plaintiff in the lawsuit, experienced all of the above behavior as she attempted to comply with the requirements set forth by SLS in numerous letters each month. Despite providing SLS with all the paperwork requested, often several times, Ms. Smith was still denied a proper loan modification. Consequently, the inability to modify her mortgage means Ms. Smith may lose her home.
We are interested in hearing from consumers nationwide. Homeowners who have applied for a home loan modification with SLS since January 2014 and were denied a modification, or believe their application was processed improperly, may contact Tycko & Zavareei for a free consultation by calling Kristen Sagafi at 510-254-6810 or Lorenzo Cellini at 202-417-3660 or by using this link.
Tycko & Zavareei LLP is a bicoastal law firm with offices in Washington, D.C. and Oakland, CA, and has a long, successful record of litigating complex cases. The firm routinely handles large and complex matters throughout the country, advocating on behalf of individuals fighting for their civil rights, employees asking for their rightful wages, consumers seeking redress for unfair business practices, whistleblowers exposing fraud and corruption, and non-profit entities and businesses facing difficult litigation. www.tzlegal.com.
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SOURCE Tycko & Zavareei LLP