Unfortunately, yet another mortgage servicing company appears to be completely inept at complying with MANDATORY deferment protections for deployed military.
Our firm has had to file yet another lawsuit to force compliance with California Military and Veterans’ Code § 800. A copy of the Complaint can be viewed HERE.
In this case, the lawsuit alleges that NewRez, LLC took over the mortgage servicing rights from United Wholesale Mortgage.
Although United Wholesale Mortgage initially sent a letter to the borrowers informing them that the deferment protections would be honored, it appears that United created a lump sum amount in excess of $12,000.00 to claim that the borrowers owed that full amount in one lump sum instead of having it spread out over regular monthly payments, which appears to have then resulted in NewRez, LLC falsely claiming after they took over the account that the borrowers were in default on that full amount in excess of $12,000.00.
The lawsuit further alleges that, when the borrowers called in to NewRez, LLC, the customer service agents would claim that the borrowers were entitled to the deferment protections, but NewRez, LLC thereafter failed to actually take any steps to fix the problem.
And subsequently, as alleged in the lawsuit, when the collections department started to initiate collection efforts on this alleged default, NewRez, LLC then falsely insisted to the borrowers that they are not obligated to comply with the deferment protections and falsely claimed that the deferment protections was simply “an agreement with the previous servicer”.
Was this was a trick by NewRez, LLC in an attempt to deceive and manipulate the borrowers into believing that they do not have mandatory protections by law so that they would then pay the entire amount that was alleged to be in default (again, in excess of $12,000.00)? Either way, such a claim is absolutely and unequivocally false!!
What NewRez, LLC either fails to understand or refuses to acknowledge is that Calif. Military and Veterans’ Code 800 is a mandatory law that applies to every mortgage servicer (so long as certain preliminary requirements are met, which is the case here), and compliance with these laws is not merely “an agreement” for voluntary compliance.
In this lawsuit, the borrowers are seeking punitive damages as a way of not only punishing NewRez, LLC for their egregious and indisputably illegal conduct, but to also teach them (and other mortgage servicers) that these laws are mandatory and must be complied with.
As we have stated before, it should go without saying that the stress and worry of being deployed is troubling enough on its own. Add to that stress the concerns over mortgage loans, vehicle loans, credit cards, student loans, and leaving property in storage for several months.
During a time that is hard enough for the non-deployed spouse to be left home addressing all the family financial responsibilities alone, deployed military families who are victimized by violations of these laws are forced to endure more stress that they should have been able to trust would not have arisen.
Fortunately, California law provides mandatory protections to military families that our firm is proud to enforce.
If you or a loved one are experiencing similar problems, please do not hesitate to contact us to discuss your rights and whether our firm can help protect you as well.