Mortgage Loan Servicing and Bankruptcy: Current Litigation Trends and the CFPB's Mortgage Servicing Amendments

摘要

Communicating with mortgage loan borrowers in bankruptcy, subject to the automatic stay, and post-discharge, subject to the discharge injunction, is tricky business. Borrowers have successfully stated claims for discharge violations based on sending routine mortgage loan servicing correspondence, such as periodic statements, default and foreclosure notices, loss mitigation solicitations, and force-placed insurance ("FPI") notices. Plaintiffs have also used alleged discharge violations to support claims under the Fair Debt Collection Practices Act ("FDCPA"). Servicers have tried to adapt servicing correspondence to avoid these issues, with mixed success.