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While there are no specific laws against predatory mortgage servicing abuses, there are local, state, and federal laws against many of the specific practices commonly identified as predatory mortgage servicing abuses, and various state and federal agencies use the term as a catch-all term for many
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transactions, the mortgage servicer forwards the borrower's payment of principal and interest to the certificate holders (investors) of the special securitized trust that owns and holds the promissory notes secured by the mortgages and deeds of trust. The
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that are being serviced by special or default servicers or servicers and lenders that are financially in trouble. There are many motives for predatory servicing practices and a report titled
Misbehavior and Mistake in Bankruptcy Mortgage Claim by
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This provides an incentive to unscrupulous servicers who aggressively interpret mortgage documents to add additional fees to a borrower's mortgage account. Many times, the additional fees added on create an event of default allowing the
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during the mortgage servicing process. There is no legal definition in the United States for predatory mortgage servicing. However, the term is widely used and accepted by state and federal regulatory agencies such as the
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which is used to describe the unfair, deceptive, or fraudulent practices of mortgage brokers and lenders during the mortgage loan origination process.
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specific illegal activities in the mortgage servicing industry. Predatory mortgage servicing is not to be confused with
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to foreclose on the property. This practice is commonly referred to as manufacturing a default or manufactured default.
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85:) details the effects and damages caused by servicing abuses.
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https://www.scribd.com/doc/14459600/Turning-a-Blind-Eye
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and
Government Sponsored Enterprises (GSEs) such as
60:Predatory mortgage servicing typically occurs on
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19:is abusive, unfair, deceptive, or fraudulent
229:"Promoting Responsible Servicing Practices"
128:Causes of the United States housing bubble
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38:Office of the Comptroller of the Currency
275:"Predatory servicing deserves a cleanup"
331:Mortgage industry of the United States
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202:: CS1 maint: archived copy as title (
83:United States House of Representatives
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30:Federal Deposit Insurance Corporation
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297:"Apps - Access My Library - Gale"
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234:. Freddie Mac. Archived from
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346:United States housing bubble
153:United States housing bubble
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143:Mortgage-backed securities
77:, professor of law at the
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42:Federal Trade Commission
301:www.accessmylibrary.com
138:Mortgage discrimination
90:mortgage securitization
273:(January 13, 2007).
81:(now member of the
79:University of Iowa
56:Relevant practices
25:mortgage servicers
23:practices of some
21:mortgage servicing
279:The Seattle Times
116:predatory lending
103:mortgage servicer
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75:Katie Porter
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50:Freddie Mac
325:Categories
189:2009-09-18
159:References
46:Fannie Mae
356:Deception
198:cite web
122:See also
109:Legality
62:subprime
361:Usury
351:Abuse
239:(PDF)
232:(PDF)
183:(PDF)
176:(PDF)
66:Alt-A
204:link
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