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The Top 8 Bank Violations - Look Out For These!

Posted by: Jeffrey Greenberg on 6/17/2011

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Bank Violations

When people think about breaking the law or criminal activity, rarely do they consider banks to be one of the main offenders. However, as you’ll see in the following list, bank violations are rampant and were some of the main causes of the “Great Recession.” The rush to find loan modifications, the mass foreclosures, and the bank class action and mass joinders began with bank violations.

The Top 8 Bank Violations:

RESPA – The Real Estate Settlement Procedures Act is a list of guidelines banks have to follow to provide homeowners. Your lender may have run afoul of this law in many ways.
HMDA Errors: This could include loan purpose, loan amount, GMI, income and rate spread. Banks and lenders like Countrywide allowed all sorts of financial data to fall through the cracks, and many times this was done on purpose.
Falsely Inflating the Housing Market – If a house is worth more, then your mortgage will be higher. So, it benefits the banks if a home that is ACTUALLY worth $100,000 gets sold for $150,000. That means the mortgage, plus the interest, will be more burdensome for the buyer, but more lucrative for the bank and/or lender.
Predatory Lending – Banks rarely explain how their complicated system of checks and balances works. Because mortgage contracts are complex, and because most homebuyers simply want a house with the least amount of hassle possible, banks can target people who are not as educated about financial matters as they could be. Banks routinely went after low-income or minority buyers, selling them exotic mortgages and then foreclosing on them when they couldn’t pay.
Robo-signing – Bank executives were signing countless foreclosure documents without even reading them. There are laws which dictate a certain level of oversight for these loans, and any mistakes in the paper work should be held against the lender and not against the borrower.
Truth in Lending Violations – Banks and lenders are governed by the government to make sure they are being completely honest with what they are selling consumers. For example, if you got a “interest-only” loan, then you should have understood that you are paying more in interest than you would otherwise.
Patriot Act Violations – Yes, even the Patriot Act governs banks like Bank of America, Citi and Wells Fargo. A mass tort could help rectify the situation by examining whether the lenders abided by every law they are supposed to.
State and Local Mortgage Violations – Each state has a different set of rules, and if the banks didn’t abide by them, you may be eligible to join a mass tort in your area.

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If you need mortgage relief, if you need real assistance, if you want to keep your home and get a lower payment, then you NEED to contact us today. We can examine your mortgage, look for potential fraud, see if a loan modification is possible or if your current loan modification is appropriate and help you keep your home. Call us today at 1-800-555-5555 and see if you are eligible for our mass tort litigation.