MORTGAGE SERVICING ABUSES
other default events that
will trigger late charges,
property inspections and
broker price opinions.
30. Charging their own
attorneys fees for the
documents needed to file a
motion for relief from stay
and then adding these fees
back to the mortgage loan.
31. The failure to give the
debtor credit for payments
received from the trustee
for court approved legal
fees to be paid pursuant to
the plan.
32. Charging the debtor for
legal fees substantially
greater than the actual fee
approved by the court.
33. Seeking to charge debtors
enhanced fees for loss
mitigation services required
of them in any event under
their servicing agreement.
34. The raiding of escrow
accounts strictly reserved
for the payment of property
taxes and insurance for
the purpose of funding and
paying down corporate
advance accounts.
35. The systematic filing of
false affidavits with the
court.
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CONSUMER BANKRUPTCY JOURNAL
36. The systematic filing
of documents with the
court that are purportedly
prepared by the mortgage
servicer but that in fact are
prepared by some thirdparty provider of out-source
services.
37. The systematic failure
to properly reconstruct a
mortgage payment history
so as to verify the accuracy
of all post-petition credits
before instructing an
attorney of file a motion for
relief from stay.
38. The failure of attorneys
for mortgage servicers to
review, sign and verify court
pleadings before filing them
with CM-ECF system.
39. The inclusion of bogus
“foreclosure fees” and
charges in sworn proofs of
claim.
40. The failure to provide for
proper credits and refunds
on various foreclosure
advances before including
the full amount allegedly
advanced in the proof of
claim.
41. The inclusion of bankruptcy
related attorney fees
in proofs of claim by
designating the same
Winter 2015
as “foreclosure fees”
or “foreclosure related”
expenses.
42. The inclusion of vague
and obscure disclaimer
language in proofs of claim
regarding their practices
of charging or of tracking
post-petition legal fees and
oth er charges.
43. The inclusion of pre-petition
taxes in proofs of claim and
then increasing the monthly
mortgage payments to
recover the taxes as an
escrow advance.
44. The rating of attorney
performance by
benchmarks related to
how fast they perform
designated functions as
opposed to the quality
and accuracy of the work
product.
45. The offering of quarterly
bonus plans to attorneys
who rank high in their
attorney performance
reviews.
46. The benchmarking of time
rather than integrity.
47. The preparation of “payoff” statements during the
course of a bankruptcy
case that do not disclose
National Association of Consumer Bankruptcy Attorneys