Another Spectacular Display of Government Collusion with Big Banks: Specialized Loan Servicing Pays $1.25 Million for Failing to Comply with RESPA on $112 Billion in Claimed "Loans"

The consent order requires SLS to pay $1.275 million in monetary relief to consumers in the form of redress and waiver of borrower deficiencies, pay a $250,000 civil money penalty, which will be paid to the Bureau and deposited into the Bureau’s Civil Penalty Fund, and implement procedures to ensure compliance with the Real Estate Settlement Procedures Act (RESPA) and its implementing regulation, Regulation X.

A copy of the consent order filed with the Bureau is available at: https://files.consumerfinance.gov/f/documents/cfpb_specialized-loan-servicing_consent-order_2020-05.pdf.

I continue to be infuriated by regulators who now know the extent of illegal collection, administration and enforcement of transactions with homeowners. The entire industry that calls itself “servicers” is mostly comprised of a fully paid, indemnified coverup of false claims leading to collection of money and forfeiture of homes that are admittedly wrongfully foreclosed but the agency refuses to require the players to undo false, illegal and fraudulent foreclosures.

The Bureau’s investigation found that since January 2014, SLS violated RESPA and Regulation X by taking prohibited foreclosure actions against mortgage borrowers who were entitled to protection from foreclosure, and by failing to send or to timely send evaluation notices to mortgage borrowers who were entitled to them.  These violations also constitute violations of the Consumer Financial Protection Act of 2010. In some cases, SLS’s violations of Regulation X short-circuited the protections against foreclosure for consumers whose homes were ultimately foreclosed upon. [e.s.]

So if you want to know why this is happening, look in the mirror. You are a voter. So if you don’t vote for people who are likely to require enforcement of our laws to protect consumers and homeowners, you are part of the problem.

And if you are not interested in being part of a homeowners association that defends and lobbies for laws that strengthen protection for homeowners, you are allowing this to continue. One way or the other, it will visit your doorstep. It will be either in the form of your own home or the effects of someone else’s problem that reduces the valuation of your home.

Think I’m overstating? Google “mortgage meltdown” or “2008 financial crisis.” Or better yet Google history of “TARP” where the definition went into constant change mode. Get the facts. Then decide for yourself based upon facts.

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