“State Supreme Court Chief Justice Stuart Rabner made a splash in December when he ordered six of the nation's biggest mortgage lenders into court to show why their foreclosure operations shouldn't be suspended over reports of widespread irregularities.
“State attorneys general around the country have increased pressure on lenders over the past year, but New Jersey is believed to be the first state whose Supreme Court has stepped into the fray so boldly.
“Too boldly, according to the banks' court filings. With the court hearing looming next month, the banks say they'd already begun remedial action months before New Jersey's court order and that suspending their operations would damage already shaky housing markets and lead to further deterioration of hard-hit neighborhoods.”The legal argument centers on constitutional issues. Mainly, “the order violates due process and equal protection clauses because it targets six lenders while omitting others and doesn't arise from any specific complaints, according to the filings.”
The court is trying to "remedy what it perceives as a public policy issue," attorneys for Ally Financial's GMAC Mortgage unit wrote. "Such powers are the province of legislators and regulators."
The lenders targeted by the court’s order are GMAC Mortgage, OneWest Bank, formerly IndyMac Federal Bank; BAC Home Loan Servicing, a subsidiary of Bank of America; JP Morgan Chase's Chase Home Finance; Wells Fargo Financial New Jersey and CitiResidential Living, a subsidiary of Citibank. The companies process almost half of New Jersey’s foreclosure actions.
This may seem as good news for borrowers in foreclosure, but all it does is delay the inevitable.
Read the full story.
For your next title order or
if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Vested Title Inc.
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
Tel 973-808-6130 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com
Sphere: Related Content
Posts
No comments:
Post a Comment