Mortgage Events This Week

[Caroline Gerardo]

Couple things in mortgage news:

NPR ran a story this week about #veterans not getting the forbearance promises made and they are in foreclosure.

Eight days later the VA halted, stopped foreclosures for #VA loans until May 2024 to get this fixed.

https://cgbarbeau.blogspot.com/2023/11/va-stops-foreclosures...

Mr Cooper now seeing class action lawsuits from not having adequate security measures.

Mr. Cooper, a mortgage loan servicer with over four million customers, was the victim of a cyberattack on October 31, 2023. The attack compromised customer data and caused service disruptions. Hackers were able to access certain systems, which Mr. Cooper shut down. The company is sending notices to affected customers and offering free credit monitoring. Customers have filed class-action lawsuits against Mr. Cooper, accusing the company of negligence and breach of contract. The full impact of the attack will depend on the length of the disruptions, the magnitude of the breach, and potential reputational damage.

[Caroline Gerardo]

re the VA @Carlos Ptriawan

When our government announced that forbearance on mortgages should be available there were no laws no standards no rules as to who gets what terms.

It's not the "lender" it's the servicer and trustee of the note who is financially harmed. Nothing collected, the investment worthless temporarily. Many servicers merged or closed their doors in past two years.

Servicers made a huge variety of promises to borrowers, as there was no law in place to follow. I know of three veterans who sent me email trail of promises which they ended up reversing - "We will add three years of payments to the back end of your loan." BUT in reality the called the whole amount due as a balloon in 2023 and veteran had no means to come up with $90000.

I expect anyone who did a subject to or wrap around with a veteran is at risk of losing the property, being sued for treble damages, and the veteran gets the house back. I warned many on BP to make certain they got the veteran to sign all the disclosures and less than .001% bothered to dot their i's and cross the t's. 

A nice attorney can look up the public records and start contacting harmed veterans and make millions.

This mess is a shame.