Court Roundup: News on Several Mortgage Servicing Lawsuits

| 28 Comments | No TrackBacks
Homeowners who have endured poor treatment, abuse and neglect by their lenders have taken to the courts. Several class action suits have been filed against notorious mortgage servicers who have been accused of stringing along borrowers who sought loan modifications under the federal HAMP program

In one suit, plaintiffs' attorney Keller Rohrback filed a class action in federal court in San Diego March 17 against Chase Home Finance and JPMorgan Chase.

The complaint should sound familiar to anybody who reads this blog:

The complaint alleges that Chase engaged in bad faith with respect to mortgage loan modification negotiations by leading mortgagors to believe that Chase would permanently modify their mortgage loans upon successful completion of HAMP TPPs or other temporary payment plans. Chase allegedly instructed mortgagors to stop making mortgage payments under the false pretense that doing so would not hurt their credit scores and was necessary for them to attain a loan modification. Even after mortgagors followed Chase's instructions, however, Chase allegedly imposed artificial obstacles to obtaining a permanent modification, by, among other things, repeatedly requesting duplicative financial information and needlessly delaying the loan modification process. The complaint also alleges that Chase proceeded with the foreclosure process based on mortgagors' failure to meet impossible and shifting demands, charged unreasonable fees, and failed to properly apply payments or keep accurate records.

The Seattle-based firm is looking for borrowers who tried to modify their loans with Chase and other servicers, including American Home Mortgage Servicing, GMAC Mortgage, EMC Mortgage, Litton Loan Servicing, Nationstar Mortgage or SunTrust Mortgage. Get in touch with them at 800-776-6044 or via email at

Another class action suit, filed against EMC Mortgage, has been expanded to include EMC's new parent company, JPMorgan Chase. As I wrote last fall, the suit, which is now being heard in U.S. District Court in Orange County, Calif., alleges that the two lenders strung along borrowers for years in an "extend and pretend" strategy. Delaying loan modifications, while collecting payments and servicing fees, allowed EMC and Chase to disguise distressed loans on their balance sheets, the lawsuit says.

Borrowers who have struggled with EMC Mortgage's loan modification program in California may want to contact the class action attorneys, Lanza & Smith, at 888-244-3934.

The good guys won in a Georgia case.

On March 21, a jury awarded $20 million in punitive damages against PHH Mortgage Corp., doing business as Coldwell Banker Mortgage, to U.S. Army Sgt. David Brash.

Sgt. Brash, an active duty soldier out of Fort Benning, Ga., spent more than a year trying to get his home loan and credit rating straightened out after PHH mistakenly reported his mortgage payments late or missing. Sound familiar? (See earlier blogs about their treatment of  Todd and Kendra Parker: Dear PHH and the follow up here.)

According to the Columbus Ledger-Enquirer, "During the six-day trial, jurors heard that Coldwell Banker improperly reported Brash, 29, to credit bureaus which led to a 'serious delinquency' on his credit report, that it refused to answer his questions or correct his account and damaged him emotionally, physically and financially, his attorneys and court documents say. 'The jury was aggravated as to how he was treated,' said Charlie Gower, an attorney who represents Brash. 'I think the jury was just very mad because they were attacking David Brash the soldier and basically calling him a liar.'

This jury award speaks volumes.  The question is, just who will 'hear' it?

The jury's outrage over how PHH treated Sgt. Brash should serve as a warning to those mortgage servicing companies who treat their customers in the same manner.  As more and more victims of predatory mortgage servicing practices turn to the courts, chances are more and more jurors will view the actions (or in-actions) of the defendant with the same outrage and disgust as Sgt. Brash's jury did.

Check out these links for more info and stories on mortgage servicing and foreclosures and updates on additional lawsuits

Update Find info on another recently filed lawsuit against Citibankt: See: Fighting on two Home Fronts

Enhanced by Zemanta

No TrackBacks

TrackBack URL:


I too am a retired disabled Veteran who has been attempting to modify my home loan with EMC/Chase for more than a year but to no avail. Now I have been notified they sold my loan to JP Morgan Chase which is still the Chase family. This has been one of the most frustrating experiences I have ever been involvled. We continually received the run-a-round from these folks. NACA sent the original package and EMC reguested the same documents three time if not more. I also sent the same documents to NACA to send to EMC/Chase so it was more than three times. They never intended to modify my loan.

This same mortgage company, PHH mortgage has erroneously falsified our mortgage payments to the credit bureau and every time we have attempted, since 2006, to have them correct the errors, they create more of them! We are seeking someone that can legally assist us in straightening out this horrific mess.

I have been trying to get a loan modification from PHH Mortgage for a year. Last April I contacted them because I knew we would start having problems paying the mortgage because of unemployment and helping to take care of my mom due to extensive health issues/surgeries. They said we didn't qualify for a reduced payment. Their forbearance solution was to pay two months ahead and then back to regular payment. They told us they would be sending us additional information which we never received. In December 2010 I called and the rep said the only solution that we qualified for was a short sale. Now we have a trustee's sale date of April 22nd, 2011. I have had reps tell me not to worry, that it was very unlikely that a mod would not be approved, and that they have up until an hour before the sale to postpone. I have less than a week to decide to file bankruptcy, especially since I have no funds to pay an attorney much less court costs. No stress there...

I to am so very tired of the run arounds i am getting from EMC, CHASE whoever has our loan now..We have been getting this garbage for a very very long time..Just found a phone # here and have called..waiting for a call husband was diagnosed with kidney cancer and had his kidney removed and it put us back a long way..we want to keep our home..we love our home and are just asking for help to keep our home SOMEONE PLEASE HELP!!!!!...i have sent docs in so many times its not funny..and my precious loving dear mother just passed away...I really dont know how much i can stand..I cant even greive for her for all of this .I am begging someone please do something!!!!!!!!!!!!!

I obtained a permanent modification for my Freddie Mac loan serviced by EverHome Mortgage. During the Trial Period they reported me delinquent to credit bureaus. After loan was modified- which I never got a Truth in Lending statement or escrow statement- EverHome refused to correct my credit report retroactive back to the 1st of month following Trial Period completion. Because of their negligence and refusal to fix the 180 days delinquent and 11k past due I got a 22% interest rate on a car loan when I had to turn in my lease- 3 months after the effective date Ever Home gave me- which is also wrong. They charged me late fees and property inspection fees- also not supposed to do that. I had to write to Dept of Thrift Supervision and Dept of Banking to get my credit corrected after 18 months of Ever Home refusing in writing to correct it and stating they continued to verify it to credit bureaus. Now all of a sudden after the Office of Thrift investigation Ever Home sends me a letter they are updating my credit back to Sept 2009 to reflect good standing. In the meantime I am stuck with a high interest loan and a debt to income ratio problem. I live in NJ.

I plan to contact a lawyer once I get the final results of the Office of Thrift investigation- which they said would be mailed out shortly.
Thank you for your advice on Naca.
I feel none of this should have happened as Ever Home had all the Guidelines, updated Bulletins as well as Freddie Mac being not only my lender but the Compliance Agent for the HAMP. In one of the Bulletins it stated that the servicer should go to the compliance agent with any complaints. Clearly that did not happen.
I feel if I could find this information on the Internet in the Guidelines, then why could Ever Home not find it- even when they could contact the Compliance Agent?
Thank you again

To follow up on my previous post- I requested of Ever Home a copy of the Universal Data form they used to send to credit bureaus. I received my credit report from Experian and the information has all been corrected- for now.
I also contacted an atty from in my area and she said they will review documents free of charge and if they decide to take case they will discuss terms- if they do not take case they return my docs (again free of charge) but will not give me any advice on my case,I guess I have nothing to lose to have them review documents.

To continue to follow up with my post- I finally received a response from the Office of Thrift in response to my complaint.
They claim that Ever Home stated they had corrected my credit reporting of 180 days delinquent as well as the 11k past due and never mentioned that they continued to report me delinquent during the Trial Period and refused to correct that back to September. However I finally did get a letter from EverHome saying they were updating my credit as current back to September. That was what I was fighting for over 18 months and they refused to do. The Office of Thrift said EverHome is accurately reporting me to credit bureaus and my effective date is correct- yet it is not. This letter from Office of Thrift contradicts the letters from EverHome that first says they refuse to correct it and then they correct it back to September. I think the whole Federal Government is corrupt. The Office of Thrift states they believe the bank has now addressed my issues in its current response and past letters. and they consider this closed.
I will now get all of my letters and other documents together for a Consumer lawyer to review.

To continue to follow up on my post- I requested EverHome mortgage to send me a copy of the Universal Data form they used to update my credit and they replied saying they updated it electronically and so they can not give me a copy of the Universal Data form.
In the meantime all I get when I request a copy of my credit report is one single page saying "paid as agreed" and I can not see if the months from September to now are showing corrected. I am still waiting to hear back from the atty I sent copies of my docs to.
In that pkg I have a letter from EverHome refusing to correct the credit from September on; a letter stating they continued to verify in a negative manner the very same information they had to update after the Dept of Thrift told them to. And I have 2 letters now from EverHome saying my credit should be update from September 2009 to present as current.
I think I have connected all the dots on this one thanks to Ever Home and their admission in letters.

To follow up again after I had a consumer lawyer review my documents. I had sent this lawyer the letters from EverHome mtg stating I was not delinquent and never was 180 days past due; letter stating they would not correct the 90 days delinquent while it was in Underwriting; the letter stating they continued to verify this incorrect information they were reporting; the letter that they outright refused to fix it and the case was closed; the letter from EverHome 18 months later after the Dept of Banking investigation stating they had updated my credit report to remove the 90 days delinquent that I had fought to get corrected for 18 months. I sent the guidelines where it clearly states how my credit should have been corrected retroactive. I sent my letters to EverHome begging them to fix it and giving them copies of the Guidelines and reference in the Guidelines to how they had a representative to call and the number to call. I was quite certain I connected all the dots.
And the lawyer says to me:

We have reviewed the material you sent and have determined that, in light of the limited potential damages, and the expense that would have to be incurred to prove them in the form of expert testimony and otherwise, even assuming liability could be proven it is not a case that we would handle. We cannot say what other attorneys would do and so you should of course consult other attorneys if you wish to do so.

I never discussed any damages with them- and "expert testimony"? I thought the EverHome letters pretty much proved what they did and refused to do.

Now I am back to square one. it would be nice if there were lawyers that would help the people who need help and not everything just be about money upfront.

Where to go now?


to follow up- I am in NJ- Northern NJ to be exact.

I do not think this lawyer even looked at the papers I sent. Because I think she might have thought there was too much to look at. I wanted to make sure I connected all the dots as I only had one chance for them to be reviewed.

I provided a summary and the documents- it was all there from start to finish- and for her to make those remarks I just do not think anyone even reviewed them.
They should be ashamed of themselves for even being part of naca.

thanks for any help you can give- I am so frustrated at this point.

I am looking for an Attorney in Georgia that can help me build a case against EMC. We had our house on the market and received a contract in Jan. 2009. Finally in May the purchasers walked away because we could not get EMC to give a letter to close. And EMC was going to be paid almost the entire balance with the sale. Since then they have tacked on so many fees and kept up hanging on getting a loan modification. They are now saying we owe almost $100,000.00 more on our mortgage. We obviously can not sell as it is not worth this, but if they foreclose they can come after us for the difference, which keeps escalating. I feel they really harmed us by not acting on the contract we had (we also had a backup offer at the time) and now feel like they are increasing what we owe so that they have more to collect from us.

I felt like i was all alone when it came to issues with PHH, but after reading numerous complaints, i realize the exact opposite. PHH has been very bad to alot of people. To make a long story short....i got behind on my mortgage payments in sept 2009, contacted PHH immediately. they sent out the financial worksheet package for me to fill out as well as the loan modification application. after calling almost daily and being told that i didnt have to call everyday, that when my account was turned over to a councelor they would call me. this went on for months or me still calling and never getting any anwers to my questions. i even tried to send in payments that they wouldnt accept. in july 2010, they sent me another finanial worksheet package, when i called and told them that i had already filled one out and that i had been waiting for a loan modification, i was told that if they sent the financial worksheet to me again they must want me to fill it out, so fill it out and sent it in. still im calling every other day, still no answers. in october we recieved notice that our house was gonna be sold, called in at that time and spoke to a lady that informed me that the financial package that i filled out in July was actually the wrong paper work, that i was approved for the loan modification and that is what should have been sent to me. she assured me that the house wouldn't be sold and the loan mod paperwork would be sent to me immediately....two weeks later we DID NOT get our loan mod paperwork, but the paperwork saying that the house had sold. i called and was told that the house was sold in ERROR. talked to several people that told me it should not have sold. i was told that only TWO people could overturn the sell and they are FRED MARTIN and JENNY COCLOUGH. i called both several times a day, leaving voicemails each time, even emailed Martin. i never heard a word from either until Nov 23rd 2010, Jenny Coclough called and apologized for not calling sooner sayingn she had been out sick. she told me she would fix this error and make it right. she aked that i give her a few weeks to research everything. after not hearing from her in 3 weeks i started calling.....NEVER got any return call from her....called every day, several times a day, literally begging for return phone call. there were several names left on her voicemail recording telling people to call those people if we didn't get her...there names are LINDA HICKEY, SHELIA CARDUCCI, SAMANTHA WEBB PATTERSON. i left messages for these people also...never a return call. finally Coclough called me the end of JAN 2011, stated there was nothing she could do, cound't overturn the sell and that she was sorry. Sorry....that is what she said. she just put me off and put me off until there was nothing that could be done. you know, you do what PHH wants you to do, fill out all the paperwork and think they are looking out for your best interest, believe me, these people do not care. I need to know where to turn now, i think they did me wrong, especially after being told the house was sold in ERROR. who do i contact, does anybody know any lawyers that deal with these people already.....we have got to stop PHH. any info would be appreciated.

I filled out the chase forms over 6 times and each time they said I needed to fill out more forms or that the forms were in their old server so I needed to re fill them then i had to re write the hardship letters over and over because they said that they were too old (DUE TO THEM TAKING SO LONG TO PROCESS) I lost my job due to injury in 08. have been unemployed due to it since (no one hires you if you filed a workmens comp case in florida for a few years.. and well even if i was able to make the payments now I couldn't make that bulk payment!

Vicki, I am in same boat. Need an attorney in GA. Quick. please contact me if you find one.

I'm in Northern IL. I currently am fighting EMC / Chase/ JP Morgan Lender is Fannie Mae. We are going threw all they above. Thank GoodNess I kept all my documents and payment receipts and approved loan modification papers they said I was never on. All our payments 1st and 2nd mort. are sitting in a suspension acct. somewhere? They put us into foreclosure for non payment. They just have no clue where they put the payments. However I have all the western union receipts they received the payments.

We are using The Rogers Law Group near Chicago IL. it was hard to find anyone that covered our county.

Look up M.e.r.s and cloaded titles also.

I am having a very hard time dealing with mortgage co PHH. I recived my modification papers then 3 months later they rasied the paymeny by more then 200. a month I live in Indiana need help please. I would love to file a law suit against them. Thanks ALVIOUS

After a heart attack in July, I couldn't work. I tried to talk to Chase about my mortgage. They said I would fall under the Freddie Mac harp program. It would lower my payments. 2 months later, my mortgage is now over 2000 a month, because they wiped out my escrow money and kept it and now they want me to cover the escrow again that was already there.. I was never told of this and several other issues that this modification has caused.. I can't find a lawyer to go up against this giant firm.. Why are lawyers afraid to go after Chase for their lack of communication in these type of matters??? Any help would be greatly appreciated.., Terry a. Huskey..

chase backed loans though litton loan servicing gave me all the wrong information on a loan modification i paid 2700 on my bithday then they wanted another 3000 that was not told to me or on my loan modification this was a home i inherited from a death

I am seeking a lawyer to help my wife and me with Nationstar who bought my loan from Aurora. Both companies have held payments, returned payments and are doing or did their level best to say we are behind in payments.

Nationstar took over in July of 2012 but did not notify me until the middle of July. i had already made the July payment to Aurora who did not return it.

I have paid August through June to Nationstar. Today Nationstar sent back the May payment but not the June payment. The letter was dated May 17th but was not postmarked until June 17th.

These guys are driving me crazy. I want blood now!

My wife and I tried to purchase a commercial property back on sept only to find out GMAC mortgage totally messed up our credit by giving the credit bureaus wrong information. We have spent that last few months trying to get the credit reports straightened out. We even sent out bank records showing that GMAC was wrong. We gave list thousands of dollars because we couldn't buy the property we wanted to buy. Is there a class action lawsuit or something we could join to help us fix thus and recoup some of the money lost

Leave a comment

A memoir exposing the steep price consumers pay when facing mortgage servicing errors, inaccurate credit reporting, illegal debt collection practices, identity theft and weak consumer protection laws. THE BOOK » DENISE'S STORY »