The Real Estate Settlement Practices Act (RESPA) and Regulation X are meant to help consumers with the servicing and settlement of their real estate transactions. They were intended to require mortgage servicers and other to provide them with adequate and timely information and to protect them from high charges and abusive practices. The complaint for this class action alleges that PHH Mortgage Corporation, which does business as PHH Mortgage Service, violated the law because it did not provide the name of the owner of a mortgage loan in response to an inquiry.
The class for this action is all borrowers in the US (1) who have loans for which owner the owner or investor is a securitized trust or pool, (2) where the loans are serviced by PHH, (3) who sent PHH an inquiry asking for information about the owner or assignee of the loan, (4) in response to which PHH did not identify the securitized trust or pool that was the owner.
RESPA requires that servicers “take timely action to respond to a borrower’s requests to correct errors relating to allocation of payments, final balances for purposes of paying off the loan, or avoiding foreclosures, or other standard servicer’s duties.”
Reg X cites two new types of correspondence from borrowers: requests for information (RFI) and Notices of Errors (NOE). Among the information that servicers must provide are the identity of and contact information for the owner or assignee of the consumer’s mortgage loan. This information must be provided within ten business days. Servicers must also answer NOEs within ten business days.
Barbara Lovreta had a mortgage loan which was held or owned by a securitized trust. PHH was the servicer. Lovreta sent PHH an inquiry, dated May 6, 2020, asking for the “identity, address, and other relevant contact information about the owner or assignee of the loan.”
PHH sent a response on or around May 15, 2020, providing the “investor details,” including the name of the Bank of NY Mellon, CT MBS Group, at a Pennsylvania address with an 800 telephone number.
According to the complaint, BONY is not the owner of or investor in Lovreta’s mortgage; instead, the complaint alleges, it is “merely the trustee that collects payment on behalf of the actual owner or investor” which the complaint identifies as ABFS Mortgage Loan Trust 2000-4.
Lovreta then sent an NOE to PHH via certified mail and received an answer which, among other things, did at last name the actual owner.
The complaint claims, “Because many homeowners sending Inquiries are involved in defending against foreclosure or are seeking information related to available loss mitigation options, this conduct is extremely detrimental as it deprives these homeowners [of] having full knowledge of what entity their obligations are ultimately owed [to] or what loss mitigation options” they might be eligible to pursue.
Article Type: LawsuitTopic: Real Estate
Most Recent Case Event
PHH Mortgage Naming of Owner of Mortgage RESPA, Reg X Complaint
December 21, 2020
The Real Estate Settlement Practices Act (RESPA) and Regulation X are meant to help consumers with the servicing and settlement of their real estate transactions. They were intended to require mortgage servicers and other to provide them with adequate and timely information and to protect them from high charges and abusive practices. The complaint for this class action alleges that PHH Mortgage Corporation, which does business as PHH Mortgage Service, violated the law because it did not provide the name of the owner of a mortgage loan in response to an inquiry.
PHH Mortgage Naming of Owner of Mortgage RESPA, Reg X ComplaintCase Event History
PHH Mortgage Naming of Owner of Mortgage RESPA, Reg X Complaint
December 21, 2020
The Real Estate Settlement Practices Act (RESPA) and Regulation X are meant to help consumers with the servicing and settlement of their real estate transactions. They were intended to require mortgage servicers and other to provide them with adequate and timely information and to protect them from high charges and abusive practices. The complaint for this class action alleges that PHH Mortgage Corporation, which does business as PHH Mortgage Service, violated the law because it did not provide the name of the owner of a mortgage loan in response to an inquiry.
PHH Mortgage Naming of Owner of Mortgage RESPA, Reg X Complaint