Lender Complaints and Avoiding Scams

HOMEOWNER'S CAN FIGHT BACK AGAINST THEIR LENDER: It is important to know that homeowners and authorized third parties are able to file complaints with the bank regulators or another option if reviewed under one of the Making Home Affordable programs like HAFA, then it is possible to open an escalation with the HAMP Solution Center who handles complaints about lenders and servicing companies who do not follow the program guidelines under the Making Home Affordable program which includes the HAFA Short Sale Program. It is not at all uncommon for the lenders to not be following the guidelines. The HAMP Solution Center is a great resource I am using now for clients and they are wonderful to work with. Also, Fannie Mae now has a short sale assistance desk available to real estate professionals like myself for post-offer issues with short sales. Use the Fannie Mae Loan Lookup tool to see if they are the investor.

Escalation Process Contacts
Fannie Mae Owned Loans	Phone: 1-800-7FANNIE resource_center@fanniemae.com
Freddie Mac Owned Loans	Phone: 1-800-FREDDIE borrower_outreach@freddiemac.com
Non-GSE Owned Loans	HAMP Solution Center Phone: 1-866-939-4469 Fax: 1-240-699-3883 escalations@hmpadmin.com

The HAMP Escalation process start page is a great tool for consumers to see if they have a valid complaint against their lender or servicer. Keep in mind that the HAMP Solution Center will only handle escalations for borrowers in the U.S. Treasury sponsored programs like Making Home Affordable or the HAFA Short Sale program.

To start, first, work through your normal contacts and channels with the servicer. If that does not resolve the issue, elevate your concern to a senior manager within the servicer's organization.

Here are examples of cases that represent valid reasons for escalation:

Servicer refuses to stop a scheduled foreclosure sale on a borrower's house while the borrower is being evaluated for HAMP.
Servicer charges up-front fees for the modification.
Servicer instructs the borrower to miss a payment.
Servicer claims that they are waiting for information or guidance from Treasury (i.e. Treasury is causing the delay).
Servicer advises the borrower to intentionally misrepresent their personal or financial information.
Servicer says they are not participating in HAMP, but the loan's investor is a GSE.
Servicer says borrower doesn't qualify, but counselor has reason to believe that the borrower is eligible.

Contact information for the Escalation or Complaint Process is below:

If escalating to senior management does not resolve the issue, escalate the issue using the following contact table:

Gather the necessary case information and borrower consent.

The inquiry information that a counselor will need to supply for a status includes the following:

Homeowner's Name
Property Address
Servicer Name
Servicer Loan Number
Foreclosure Date (if applicable)
Counselor Name & Organization
Counselor Email
Counselor Phone
Counselor Relationship to Homeowner

An escalation specialist will work with the servicer regarding the case and seek to provide you with an initial status within four business days of receipt of the requested inquiry information and borrower authorization. If the servicer is unwilling to comply with program guidance or the escalation team identifies systemic non-compliance, the escalation team may report the servicer to the Making Home Affordable Compliance team.

Homeowner Resources for Complaints & Victims of Scams

Office of the Comptroller of the Currency -- The U.S. Department of the Treasury’s Office of the Comptroller of the Currency provides tips and materials to help homeowners avoid mortgage modification and foreclosure rescue scams. Find them here. Also at www.helpwithmybank.gov. This is the regulator for most banks and can handle customer complaints filed as well.
Consumer Financial Protection Bureau -- This new agency was created to span across Federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times. Complaints can be filed on their website at http://www.consumerfinance.gov/.
Financial Fraud Enforcement Task Force -- The Financial Fraud Enforcement Task Force maintains a wide list of resources and information dedicated to helping find and report suspected cases of financial fraud. Visit www.StopFraud.gov.
If you think you were a victim of fraud, you can contact the Department of Consumer Affairs--Fraud Division at 213-974-1450 or 800-973-3370.
If your complaint is against an attorney, visit the State Bar of California website or call 800-843-9053.

Great news for homeowners to have had foreclosures filed between Jan 1, 2009 and December 31, 2010!!!

[November 1, 2011 from the Office of the Comptroller of the Currency (banks regulator)] the 14 mortgage servicers covered by the enforcement actions began mailing letters to eligible borrowers that explain how to request a review of their case if they believe they suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings related to their primary residence between January 1, 2009 and December 31, 2010.

Borrowers may also visit www.IndependentForeclosureReview.com for more information about the review and claim process. Assistance with requesting a review and answers to questions about the process are available at 1-888-952-9105, Monday through Friday from 8 a.m. to 10 p.m. (ET) and Saturday from 8 a.m. to 5 p.m. (ET).

Has anyone received this mailing from their lender? Has anyone requested a review yet? Please note that requests for review must be received by April 30, 2012.

Independentforeclosurereview.com

Phone 1-888-952-9105

Monday through Friday from 8 a.m. to 10 p.m. (ET)

Saturday from 8 a.m. to 5 p.m. (ET).

Jason Hector, CA Dept of Real Estate License #01481898
11630 Seminole Cir • Northridge, CA 91326
Office: (818) 626-6469 • Cell: (818) 357-9658
Fax: (866) 791-3290