Ohio Woman Sues Chase For Alleged Mortgage Law Violation

(Adam Fagen)

When you don’t follow the rules, you’re likely to get into a bit of trouble. In this case, JPMorgan Chase found itself party to a lawsuit alleging the company violated a law aimed to protect homeowners.

An Ohio woman filed suit in a U.S. District Court in Cleveland against Chase alleging that the company violated a provision of the Dodd-Frank law that requires lenders to work in good faith with consumers who have applied for a home loan modification, The Plain Dealer reports.

According to the complaint, Chase filed a foreclosure against the woman despite the fact that she had a pending loan modification request with the lender.

The woman’s attorney contends that Chase’s actions were in violation of the Home Affordable Modification Program law that helps consumers who are dealing with home loans they can no longer afford.

Under the law, a servicer cannot file for foreclosure when a modification application has been filed. Instead, the servicer is required to review the request promptly and then consider the homeowner for all options.

The woman’s troubles began back in 2007 when she took out an adjustable-rate mortgage serviced by Chase. Two years later, she was having difficulty making payments and requested a loan modification.

According to the complaint, the woman remained current on her loan until she was instructed by a Chase representative to stop making payments in order to be considered for the modification.

The woman says she set aside money for the payments over the last five years, but that Chase refuses to take it.

While the foreclosure has been dismissed for now, the woman’s lawyer says there has been no discussion between his client and Chase regarding the loan modification.

A spokesman for Chase declined to provide The Plain Dealer with comment on the case, but said the company’s website has a section dedicated to homeowners facing financial difficulties.

Chase bank being sued by Ohio woman claiming violation of mortgage law [The Plain Dealer]

by Ashlee Kieler via Consumerist