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Predatory Lending/RESPA Violations

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paigeamj

Junior Member
What is the name of your state (only U.S. law)? Texas

I closed on my FHA loan in July 2014 and paid upfront MIP and also still pay monthly MIP. I pay my entire payment plus 20% extra to principal. My mortgage was sold to a servicer from the very beginning and the original lender is no linger in business. I found out that I do not have an FHA loan but a conventional loan, and now the servicer only wants to dicuss this in writing. I also found out that I am not the only borrower that this has happened to with this lender.

Do I have any legal recourse? If so, what kind of law practice should I look for?
 


FlyingRon

Senior Member
I'm failing to see either the "predatory" nature nor the RESPA violation here.

Loans get sold and have changes in servicers all the time.
Mortgage insurance is permitted on non-FHA mortgages.
Lenders/servicers are not required to communicate by phone.

Have you met the requirements to cancel the PMI?
 

paigeamj

Junior Member
I was charged for an FHA mortgage and I do not have one. I have been paying FHA stated and related fees and I don't have an FHA case or loan.
 

HUD-1

Member
Sounds more like incompetence than predatory lending. It sounds like they originated an FHA loan, closed, then could not get it insured by HUD/FHA. Legally, I would say you are entitled to the benefits that flow from an FHA loan, including the Loss Mitigation Programs. What do you feel your loss/injury is?
 

paigeamj

Junior Member
My loss is the amount paid, listed as upfront MIP in my HUD1, as well as the monthly FHA MIP payments.

My servicer contacted me yesterday and is fixing this error, but apparently this happened with many loans from the original lender. Would accepting refunds limit my ability to participate in a class action lawsuit IF one was/will be started?
 

FlyingRon

Senior Member
My loss is the amount paid, listed as upfront MIP in my HUD1, as well as the monthly FHA MIP payments.

My servicer contacted me yesterday and is fixing this error, but apparently this happened with many loans from the original lender. Would accepting refunds limit my ability to participate in a class action lawsuit IF one was/will be started?
Most likely. But if you get 100% of the erroneously paid funds, it's almost certainly going to be more than you get in the class action. The only people who get rich on class action are the representing attorneys.
 

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