CA HAMP Rights

West v JP Morgan Chase, West Appeal wins CA HAMP right to sue for breach of contract, misrepresentation, unfair practice, etc.; trial mod becomes permanent mod; Trial/Appeal work by Richard Rydstrom, Esq. 1877Win4You
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HAMP violations Support State Causes of Action

9-2012 Rich Rydstrom, Esq. upholds Complaint for Los Angeles Entertainment Photographer in OC Superior Court for Violations of HAMP, Fraud-Mod, Unfair Business Practices, HAMP NEGLIGENCE (Biakanja and Ansanelli), RFDCPA, Promissory Estoppel, etc. Click Here

CA New Homeowner's Bill of Rights 2013

2013 New California Homeowner’s Bill of Rights May Trigger New Borrower Rights & Lawsuits with Damages!

2013. In California, we may have finally reached a turning point and entered into a (short) period of enhanced borrower rights. With the advent of the recent legislative and regulatory enactments, case law, standards, compliance duties, and best practices, mortgage servicers, foreclosure trustees, lender’s and its agents are now duty bound to conduct its businesses according to uniform and objective standards.

Recent impetus to change came from or include: HAMP (Supplemental Directives), National Mortgage Settlement (NMS), The California Commitment (and the new Homeowner Bill of Rights), California Foreclosure Reduction Act, Consumer Financial Protection Bureau, Dodd-Frank Wall Street Reform, Consumer Protection Act, FHFA, OCC and the GSE national servicing guidelines including FannieMae Announcement SVC-2011-08R (9/2/2011).

Note that California Trustees will start to use different Due Diligence forms for trustees who have foreclosures with less than 175 pursuant to California Civil Code 2923.55 (b), 2923.5(a)(2), 2923.5(e), 2924.15(a) or more than 175 foreclosures pursuant to California Civil Code 2923.55 (c), 2923.55 (b)(2), 2923.55 (f), 2924.15(a).

Dual tracking is banned for all mortgage servicers; and can no longer record a NOD while borrower has an application for a modification pending. First the servicer must make a written determination that the borrower is ineligible.

New Violations / New Private Right of Action / New Damages:

Any servicer who “engages in multiple and repeated uncorrected violations” of this provision is liable for a civil penalty of up to $7,500 per mortgage or deed of trust in an action by the government. If the borrower requests a foreclosure prevention alternative, the servicer “shall promptly establish a single point of contact and provide to the borrower one or more direct means of communication with the single point of contact.”

If Trustee’s Deed Upon Sale is Not Recorded, then a borrower may sue to enjoin material violations of the law.

If Trustee’s Deed Upon Sale is Recorded, then a borrower may sue for “actual economic damages” caused by the violation – if not corrected or remedied before the trustee’s deed was recorded. If the court finds the material violation was intentional, reckless, or resulted from willful misconduct, the court may award the borrower treble the actual damages or statutory damages of $50,000. A prevailing BORROWER may also be awarded reasonable attorney fees and costs.

Provisions of HOBR sunset on January 1, 2018, and other provisions then become effective.

It is clear from our view of these examples, that numerous and onerous requirements are being imposed upon the industry regarding mortgage servicing, modifications and foreclosure procedures. New best practices must be developed in harmony with the various new requirements, and create compliance evidence in the ordinary course of business. New best practices can be an operational, compliance and risk mitigation tool, if the industry embraces it.

Richard Rydstrom, Esq.          
Southern California Attorney 
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Articles by Attorney Rydstrom

2013 News Article: New California Bill of Rights may Trigger Homeowner Lawsuits with Statutory Damages of $50,000 or Treble Actual Damages!

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