| Current Claim Approach Outline | | | | request to weigh its possible potions and to take |
| Below is an example of a legal approach that | | | | steps to actually fix any alleged violations through a |
| attorneys in the field and modification companies use | | | | workout agreement. 12 U.S.C. § (e)(2)(A), (B), |
| to successfully bring a claim against a lender. | | | | and (C). |
| Action Steps | | | | 5. If the lender does not fix the violations within 60 |
| 1. The attorney or modification obtains a forensic loan | | | | days, the borrower is entitled to bring a claim for any |
| audit to determine the strength of the case. | | | | violations found in the loan. |
| - a. In the cases of a modification company if | | | | 6. Upon a successful claim of lending violations against |
| violations are found a certified opinion letter should be | | | | the lender, the borrower is entitled to damages |
| obtained in conjunction with the audit. | | | | based on the specific violations. |
| 2. The borrower's representative should then send a | | | | - a. Typically a borrower will always be entitled to |
| qualified written request to the bank requesting the | | | | actual damages, attorney fees, and statutory |
| loan. The bank must provide a written response | | | | damages in the amount of $1000 per violation. 12 |
| acknowledging receipt of the correspondence within | | | | U.S.C. § 2605(a) Reg. X, 24 C.F.R. § 3500.21. |
| 20 days. 12 U.S.C. § 2605(e)(1)(A) and (B). | | | | - b. In some cases borrowers will be entitled to three |
| 3. The borrower's representative then presents their | | | | times the amount paid for settlement services, |
| claim of violations within the loan to the lender. | | | | attorney fees, and costs.12 U.S.C. § 2607 Reg. |
| 4. The Lender has 60 days from the qualified written | | | | X, 24 C.F.R. § 3500.14(b). |