FTC Consent Judgment and Order against BAC Home Loans Servicing

FTC Consent Judgment and Order against BAC Home Loans Servicing

By Daniel Edstrom
DTC Systems, Inc.

Am I the only one who missed this Consent Judgment and Order against BAC Home Loans Servicing, LP (hereinafter “BAC”) and Countrywide Home Loans, Inc. (hereinafter “Countrywide”) from the Federal Trade Commission?  They seem to have put quite a damper in what they can and cannot do.  Has BAC complied with the following since this order dated June 15, 2010:

IT IS FURTHER ORDERED that, within one-hundred fifty (150) days from the date of entry of this Order, Defendants, their officers, employees, agents, representatives, and all other Persons or entities in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, directly or through any corporation, subsidiary, division, or other device, are hereby permanently restrained and enjoined, in connection with the Servicing of any Loan, from failing to disclose Clearly and Prominently the following information:

A. At Loan origination or upon acquiring the Servicing rights to the consumer’s Loan, Defendants shall disclose any use of Affiliates for Default-Related Services and if Fees are assessed for those services;

B. If the consumer’s Loan goes into default and prior to assessing any Fees for Default-Related Services, Defendants’ notice of default shall disclose (1) any use of Affiliates for Default-Related Services; (2) if Fees are assessed for those services; and (3) a link to a schedule of Fees for those services (“Fee Schedule”) on Defendants’ website(s). This Fee Schedule shall include a description of the Fees that may be charged, the amount or, where applicable, the range of each Fee, and, if the Fee will or may be paid to an Affiliate, a disclosure of that fact and the names of the affiliated service providers; and

C. The Fee Schedule shall be posted and available on the Defendants’ website{s) and a copy of the Fee Schedule shall be mailed or delivered to the consumer upon request, at no cost to the consumer.

Or how about this gem:

IT IS FURTHER ORDERED that, for eight (8) years after the date of entry of this Order, Defendants, their officers, employees, agents, representatives, and all other Persons or entities in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, directly or through any corporation, subsidiary, division, or other device, are hereby permanently restrained and enjoined, in connection with the Servicing of any Loan, from (l) initiating a foreclosure action, or assessing Fees in connection with an actual or threatened foreclosure action, until the Defendants have reviewed Competent and Reliable Evidence that substantiates that the consumer is in default under the terms of the Loan Instruments; and (2) consummating a foreclosure sale until Defendants have investigated any non-frivolous disputes by the consumer and informed the consumer of the results of the investigation.

I wonder why everyone is getting their loans transferred from BAC to Bank of America?

Download Consent Judgment and Order here: http://dtc-systems.net/wp-content/uploads/2011/08/BAC-Home.Countrywide.pdf

Download complaint here: http://dtc-systems.net/wp-content/uploads/2011/08/BAC-Home.Country.COMPLAINT-FTC.pdf

View the press release from the FTC here: http://www.ftc.gov/opa/2011/07/countrywide.shtm

Author: dmedstrom

Reverse Engineering and Failure Analysis - Reverse Engineering Wall Street

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