Weak oversight allowing banks, other lenders to “dual track” in West Palm Beach

The early results from the 2012 national agreement to stop the biggest banks from abusing homeowners facing foreclosure are in – and they are bad, for the homeowners. According to a survey conducted by Politico.com, the 5 banks involved in that settlement have continued to take advantage of distressed homeowners.

Over 60,000 complaints have been filed with the Consumer Financial Protection Bureau (CFPB) since the beginning of 2014 alone, according to POLITICO’s review of the CFPB’s database. Those complaints center upon lenders either mishandling mortgage and home loan modifications or hurrying the foreclosure process (often referred to as dual tracking). What’s more, reviewers believe that the number of homeowners with complaints about unfair practices is actually low because so many homeowners still do not know that the CFPB exists.

“It’s troubling to hear that some consumers continue to experience mortgage servicing problems,” a spokesperson for Attorney General Cooper’s office in North Carolina said in an emailed statement. “While the 2012 settlement brought help to many homeowners who were wronged, it’s clear there’s more work to be done to stop unfair home loans and unnecessary foreclosures.”

Read more: http://www.politico.com/story/2015/09/foreclosures-mortgage-lenders-2012-settlement-banks-213322#ixzz3w81buXLv

Unfortunately, distressed homeowners both in the West Palm Beach area, throughout Florida and around the country are still being abused despite the Dodd-Frank Act, the 2012 settlement and other laws enacted to supposedly help homeowners. Many of the banks and other loan servicers have made it clear that they put profits before their customers’ needs. And trying to make sure you dot every “I” and cross every “T” when filling out and submitting modification and other forms might still not be enough to keep your lender from trying to take your home.

Before that happens, you need to talk with a law firm knowledgeable about getting your loans modified today. Korte & Wortman, P.A. will fight for your rights against the abusive practices of a greedy loan servicer. Or, you may need to explore your rights in foreclosure defense. If you need help with any type of problems you have with your mortgage or any other home loan, contact us at Korte & Wortman now. Do not wait for the worst to happen – let us work with you on your behalf NOW so that you and your family can stay in your home.

Korte & Wortman is a law firm specializing in all aspects of foreclosure including bankruptcy, mortgage debt, short sales, loan modification, predatory lending practices and Dodd-Frank Act violation litigation. We have had excellent results working with a number of clients to help them stave off foreclosure and save their homes by getting them the mortgage modifications and/or foreclosure defense they need. Check out a few of our many success stories on our website at http://foreclosurefactor.com/results/loan-modification-results/.

Our home office is based in West Palm Beach, at 2041 Vista Parkway, Suite 102. Call us at (561) 544-7071, stop in to our office, email us at vdinapoli@kwlawfirm.com or come to our website. Our firm represents clients in West Palm Beach, Palm Beach, Ft. Lauderdale, throughout the state of Florida and across the eastern seaboard. We also have offices in Sunrise and Clearwater, Florida.

Real world effects of Dodd Frank Act on lending over the last five years

In response to the approximately 8 million homes that fell into foreclosure during the financial crisis in 2008 through 2010, the Dodd Frank Act was made into law by Congress in 2010. With it Dodd Frank brought numerous rules that were meant to safeguard consumers – and the economy in general – against a variety of “predatory” lenders and unfair lending practices.

The 5-year anniversary of the enacting of this historic financial reform legislation was recently passed. As a result several of the biggest financial news outlets including CNBC marked the occasion by looking at the effects that the Dodd Frank Act has had on financial reform in its first 5 years of existence. CNBC Real Estate Reporter Diana Olick published an article looking at both the good and bad effects that Dodd Frank has had on the United States (and Florida) housing market.

Olick’s (and many other experts in the financial industry’s) conclusion? Dodd Frank has made it significantly tougher to get a mortgage or any other type of loan instrument, particularly if you do not have the financial means or history to prove your credit worthiness. In addition, the cost to lenders has risen significantly, and on several levels, due to the extra time and effort that must be put into the additional paperwork, background checks and other compliance stipulations required by the law.

According to a recent study by the Mortgage Bankers Association cited by Olick, lenders are taking longer to process loan applications, and are able to process only about 20% of the number of applications per month today as compared to 2005. Olick concluded, “The home loans being made today are arguably the most pristine in history. New default rates are at record lows. All that, however, comes at a cost to lenders, borrowers and the overall health of the housing market itself.”

To read Diane Olick’s entire article, please go to: http://www.cnbc.com/2015/07/16/how-dodd-frank-changed-housing-for-good-and-bad.html

A perfect example of every law meant to fix a situation has both good and unintended consequences. On the bright side, the rampant predatory lending issues from 10 years ago have been curbed to a significant degree, a clear sign that the law is having positive effects, as well.

The Foreclosure and Bankruptcy Defense Attorneys at Korte & Wortman, P.A. have the knowledge and information to help you to utilize the Dodd-Frank Act if you feel that you have been exploited by a predatory lender. If you are in West Palm Beach, Ft. Lauderdale, Clearwater or anywhere else in the state of Florida and in need of a law firm knowledgeable about the Dodd-Frank Act, then contact us at Korte & Wortman, P.A. Korte & Wortman, P.A. is a law firm specializing in all aspects of real estate law, including the Dodd-Frank Act.

In addition to using this blog as a helpful resource, please contact us directly if you have any questions or current legal issues that might related to predatory lending, foreclosure, bankruptcy or credit issues. Our main office is based in West Palm Beach, at 2041 Vista Parkway, Suite 102. We also have offices in Sunrise and Clearwater, Florida.

You can call us at (561) 544-7071, stop in to our office, email us at vdinapoli@kwlawfirm.com or come to our website at http://www.foreclosurefactor.com. Our firm represents clients throughout the state of Florida and across the eastern seaboard. We also have offices in Sunrise and Clearwater, Florida.

We look forward to helping you get the legal advice that you need in all predatory lending, foreclosure, bankruptcy and credit card situations.