Successfully Bring a Claim Against Your Lender – A Legal Approach Used by Attorneys

Successfully Bring a Claim Against Your Lender – A Legal Approach Used by Attorneys




Current Claim Approach Outline

Below is an example of a legal approach that attorneys in the field and alteration companies use to successfully bring a claim against a lender.

Action Steps

1. The attorney or alteration obtains a forensic loan audit to determine the strength of the case.

  • a. In the situations of a alteration company if violations are found a certified opinion letter should be obtained in conjunction with the audit.

2. The borrower’s representative should then send a qualified written request to the bank requesting the loan. The bank must provide a written response acknowledging receipt of the harmonies within 20 days. 12 U.S.C. § 2605(e)(1)(A) and (B).

3. The borrower’s representative then presents their claim of violations within the loan to the lender.

4. The Lender has 60 days from the qualified written request to weigh its possible potions and to take steps to truly fix any alleged violations by a workout agreement. 12 U.S.C. § (e)(2)(A), (B), and (C).

5. If the lender does not fix the violations within 60 days, the borrower is entitled to bring a claim for any violations found in the loan.

6. Upon a successful claim of lending violations against the lender, the borrower is entitled to damages based on the specific violations.

  • a. Typically a borrower will always be entitled to actual damages, attorney fees, and statutory damages in the amount of $1000 per violation. 12 U.S.C. § 2605(a) Reg. X, 24 C.F.R. § 3500.21.
  • b. In some situations borrowers will be entitled to three times the amount paid for settlement sets, attorney fees, and costs.12 U.S.C. § 2607 Reg. X, 24 C.F.R. § 3500.14(b).



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