Foreclosure Prevention and Equity Preservation Project

Banks and the companies that service mortgages have historically engaged in conduct harmful to homeowners which has included failing to provide eligible borrowers with required loss mitigation such as affordable modifications of their mortgages, as well as commencing wrongful foreclosures. The recent national settlement reached by State attorney generals with the five largest lenders/servicers for the first time established national standards for the mortgage servicing industry. In order to monitor the mortgage servicing industry, file complaints when appropriate, and/or develop litigation strategies, this project seeks to develop systemic data and case examples showing violations of existing servicing standards and guidelines. Specific activities can include: reviewing existing standards and regulations and developing a questionnaire for clients; seeking information from mortgage/housing counselors and clients; assisting with filing complaints with the New York State Office of the Attorney General, the New York State Department of Financial Services and other relevant agencies; and conducting legal research.