Daily Archives: January 19, 2013

APPEALS COURT RULES FORECLOSURES ARE “DEBT COLLECTION” UNDER FDCPA

The U.S. Court of Appeals for the Sixth Circuit Monday handed down an opinion that defined mortgageforeclosure actions as “debt collection” under the Fair Debt Collection Practices Act (FDCPA), reversing a lower court decision.

In Glazer v. Chase Home Finance, LLC, et. al., the appellate panel said that third parties initiatingforeclosure actions must comply with the provisions of the FDCPA.

The case was brought by plaintiff Glazer after he inherited a home that still had an outstanding and active mortgage serviced by Chase. After six missed payments, Chase engaged with law firm Reimer, Arnovitz, Chernek & Jeffrey Co., LPA (RACJ) to begin foreclosure proceedings.

In a complicated twist indicative of the time, Chase did not own the mortgage in question. In fact, the bank had not even originated it. The loan was owned by Fannie Mae and Chase had been assigned as the servicer from the originator. When RACJ moved to foreclose, it represented as owner of the loan Chase.

More here…

Link

HSBC to pay $249 million to end foreclosure probes

HSBC to pay $249 million to end foreclosure probes

International bank HSBC ($55.30 -0.06%) signed onto an agreement that effectively ends the companies’ review of questionable foreclosure practices.

Rather than using an independent review process already in place, the bank will address the issue through a one-time settlement with impacted homeowners.