Maryland Lawyer Blog

The federal Consumer Financial Protection Bureau was established as part of the Dodd-Frank Wallstreet Reform and Consumer Protection Act of 2010.  According to the bureau, part of its mission is to enforce consumer protection laws.  But, does the bureau have any real power to enforce the laws and bring justice to consumers? A recent Huffington Post article suggests that the …
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In a follow-up to our previous post, Maryland, through Attorney General Douglas Gansler, officially agreed to the robo-signing foreclosure fraud settlement today with Citigroup, J.P. Morgan Chase, Bank of America, Ally Financial/GMAC, and Wells Fargo. The settlement secures an estimated $959,114,825.45 for Marylanders who were victims of the robo-signing, according to Mr. Gansler.  As explained by the Maryland judiciary at http://www.courts.state.md.us/rules/docs/166threport.pdf, …
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Yesterday, over 40 states entered into a settlement with the five major U.S. banks over fraudulent foreclosures based on robo-signing.  The banks involved were Wells Fargo, Bank of America, JP Morgan Chase, Citigroup, and Ally Financial (formerly GMAC).  Importantly, as confirmed by Michigan’s Attorney General, Bill Schuette, in his statement yesterday, the settlement “does not preclude … individual homeowners from pursuing their own …
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The Honorable Stuart R. Berger was appointed to the Maryland Court of Special Appeals by Governor O’Malley on December 22, 2011, and has actively served in that capacity since January 25, 2012.  This is good news for Maryland. Prior to the appointment, Judge Berger served as an Associate Judge in the Circuit Court for Baltimore City from December 21, 1998 …
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In a rare move last month by the most conservative U.S. Court of Appeals, the Fourth Circuit reversed a federal district court and issued a decision in favor of consumers.  The published opinion, Warren v. Sessoms & Rogers, P.A., No. 10-2105, 2012 WL 76053 (4th Cir. Jan. 11, 2012), analyzes the materiality and knowledge requirements under the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. …
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Banks continue to disregard the law and deny relief to 90% of homeowners who are legally entitled to Home Affordable Modification Program (HAMP) modifications, as shown by the U.S. Treasury’s latest HAMP Reports. Specifically, page 9 of the report shows that, as of October 2011, banks who participate in HAMP collectively service loans for a total of 891,542 homeowners who …
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With the continued economic crisis, it is important for lawyers to know how to represent a homeowner in foreclosure.  While much discussion has been devoted to deeds in lieu of foreclosure, short sales, and other ways to help a homeowner exit their home, not much discussion has been devoted to how to challenge a wrongful foreclosure.  This article covers the basics.  First, …
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The Law Office of Jason Ostendorf filed a lawsuit against Wells Fargo Bank, N.A. last week for $4,000,000 on behalf of a Maryland married couple.  The lawsuit charges Wells Fargo with “using unfair and deceptive trade practices by making false statements of material fact in connection with a loan modification application.”  The lawsuit further  alleges that “Wells Fargo has failed to honor its …
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It has been common knowledge for years that banks make money when they illegally deny a home loan modification.  Media sources such as the New York Times have reported on the issue since as early as July 2009. There are three parties to a mortgage: the homeowner, the investor, and the bank.  The bank is the party who collects monthly …
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