Mortgage litigation to rise in year ahead

A mortgage lender who serves as an expert witness has predicted mortgage litigation will continue to increase.

Joffrey Long, president of Southwest Bancorp, a mortgage broker, lender and loan servicer, provides expert testimony on mortgages and loan servicing. He has predicted that Dodd Frank will see an increase in litigation over mortgages and loan servicing.

Long said areas that are particularly likely to see give rise to litigation are:

• periodic loan payments made by borrowers, crediting of the payments, and required periodic statements
• the handling of escrow (impound) accounts for property taxes and insurance, and the handling of "forced-place" insurance
• requirements to contact borrowers upon delinquency, and advise them of the availability of workout solutions
• "single point of contact" issues, and "live contact" requirements, for borrowers to obtain information
• information requests from borrowers, and the handling of the requests
• foreclosure practices, new timetables, and limitations on when foreclosure can be filed
• definitions of many new terms, or phrases referenced by the Consumer Financial Protection Bureau, that have now become part of the laws and/or regulations

"Under Dodd-Frank, an understanding of the many new requirements, and the ability to clearly express to
others the borrower's and loan servicer's responsibilities, will be essential," Long said.