BOSTON â€" The biggest U.S. mortgage lenders, whose first-quarter earnings were buoyed by gains on home-loan refinancings, are raking in more profits as record-low interest rates and government efforts prolong the boom. With fixed U.S. mortgage rates ... Low interest rates, refinancings a boon to US mortgage lenders
Home loan providers like Ally Financial, Bank of America, and JPMorgan Chase continue to resolve probes launched in about 50 states that are aimed at closely looking at their home repossession practices. Aside from that, the lenders are facing numerous big class action lawsuits from several of their customers. The problem about allegedly improper handling of foreclosure documents started in September.
The banks reiterated that they could effectively and successfully avoid most if not all of such huge class action lawsuits.
They asserted that in most cases, involved and complaining borrowers could not demonstrate or prove any economic harm on their part. According to lawyers, most of those complaining borrowers are actually lagging behind their responsibilities or payments. Thus, foreclosures are legal.
The home loan lenders took the spotlight when skeptics started questioning whether such banks really cut corners when going into the process of foreclosures and repossessions. The so-called ‘robo-signers' of documents have been allegedly used to speed up and justify evictions of homeowners. Federal and state watchdogs are currently conducting their respective investigations to look into the matter.
The lenders have recently disclosed several of the legal challenges they face from borrowers or homeowners. However, they emphasize that class action suits they face are still not to be put in a national scope. For instance, Bank of America defended its self from a class action in Indiana by arguing that the borrowers could not demonstrate or prove any economic harm, because they would surely have lost their properties anyway.
Observers note that the legal battle between affected borrowers and home lenders could be far from over. However, they underline the confidence that the mortgage industry exudes, citing their arguments that complainants could hardly prove the injustice they have incurred. But analysts said the positive outcome of the disarray could be that home lending practices could be revamped and made more secured. Meanwhile, the housing market is yet to see how the issue could further affect its position.
Would US mortgage lenders succeed in defending their interests? The housing market could only wait and watch. Suggest US Mortgage Lenders Manage to Avoid Foreclosure Class Lawsuits Topics
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