In Foreclosure? Read and Understand Dodd Frank!dodd frank act | foreclosure

If you are in foreclosure, or are about to be, you need to understand the important protections found in The Act.

We will be using these protections, but for both existing foreclosure clients, and all other consumers


Contact your servicer, request information, keep detailed records of their responses (and lack thereof)….

In January 2013, the Consumer Financial Protection Bureau issued several final rules concerning mortgage markets in the United States (2013 Title XIV Final Rules), pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Public Law No. 111-203, 124 Stat. 1376 (2010)

The rules contain specific requirements, discussed in this guide. The rules also require servicers to adopt policies and procedures reasonably designed to achieve objectives relating to, among The rules contain specific requirements, discussed in this guide. The rules also require servicers to adopt policies and procedures reasonably designed to achieve objectives relating to, among other things: accessing and providing timely and accurate information,3 properly evaluating loss mitigation applications,4 facilitating oversight of and ensuring compliance with the rules by service providers,5 facilitating transfer of information when servicing is transferred to a different servicer,6 and informing borrowers of error resolution and information request procedures.7 The rules also set forth requirements on record retention and the contents of a servicing file.
These new rules become effective on January 10, 2014. Any borrower who is more than 37 days from a foreclosure sale on January 10, 2014 and files a complete loss mitigation application before 37 days before a foreclosure sale is entitled to an evaluation of the complete loss mitigation application for all available loss mitigation options under 12 C.F.R. 1024.41, as described more fully in section 1.5 of this guide.

Between the day the borrower’s mortgage payment is due and not paid in full and 36 days later the servicer must make a good faith effort to reach the borrower, or an authorized agent of the borrower, by telephone (not just leave a message) or talk to the borrower in an in-person meeting to discuss the circumstances of the borrower’s delinquency.

Promptly after the servicer makes live contact with the borrower the servicer must tell the borrower, or an authorized agent of the borrower, about the availability of loss mitigation options if appropriate.

An inquiry about loss mitigation, in which the borrower provides no information to the servicer, is not an application.86
But if the borrower does provide any information that would be evaluated as part of a loss mitigation application, the provision of the information IS an application.87
 The commentary gives examples of communications from the borrower to the servicer that would be considered an application, and says that “a loss mitigation application is considered expansively.” 88
If servicing on a mortgage account is transferred to a new servicer, documents and information transferred from the old servicer to the new servicer may count as an application for loss mitigation, triggering all of the responsibilities of section 1024.41.89

See the book. Comply with the requirements.

Help For Struggling Borrowers – A guide to the mortgage servicing rules


  • Brett says:

    So, how does this Dodd Frank Act benefit me if Nationstar, who “dual tracked” tricked us into a loan modification for missing one payment 3 years ago, then filed foreclosure on us after making six payments on time, and we litigated and are now awaiting for a final trial date, ( where we know the paid off judge will side with the crooks and we will lose anyway) ? Nationstar put us here in the first place and now they are stealing our home, and the courts are letting them.
    WTF is wrong with this country!?!?!?!?
    Sooner or later, there will be a Revolution of The People of America.
    Can you say…..Dr. Zhivago….?

  • Anonymous Poster says:

    I’m so tired of people saying they were tricked and playing victim. YOU stopped paying. YOU missed a payment. You just admitted so. Even ONE missed payment can warrant acceleration under the docs YOU signed. Who are you mad at exactly?

    What happens when you miss your car payment? The bank comes and repos your car! Common sense answer.

    Now, should the bank have forgiven the missed payment and let you pay it and move on, yes. But the bank was under NO DUTY to do so as many of you seem to think. You willingly, by choice, missed at least 1 payment and admit to such.

    No one “tricked” you. You CHOSE to believe what the bank told you and FAILED to seek legal advice or otherwise before blindly following what the bank said. Whose fault is that?

    They say a man who represents himself has a fool for a client.

    • Tricked Victim says:

      I understand what your saying, I used to feel the same way.” You stopped making payments, then you lose your house”, but I have come to find out by personal experience, not all people in foreclosure missed payments.

      I was never late before I asked my bank about a loan modification. I asked because I became disabled and wanted to lower my payments. I continued to make all payments on time got trial mod and then permanent modification was approved. I signed all the papers, sent them back and didn’t hear from them for 7 months and all along still making payments. Then I get a letter from the bank saying they will no longer be accepting my payments and that they referring my loan for foreclosure. If you were in my shoes would you think the bank is trying to steal your home? I can see if I missed payments but I never did, I have the paperwork saying the modification was approved. Why are the trying to foreclose on me now? The paralegal I was working with at local law firm told me basically I was going to lose my house because no one wins against the banks. So YES I was TRICKED and YES I am a VICTIM.

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