By now, most of our readers and many in the mortgage industry know that we have the largest federal false claims action in the U.S., HUD’s $2.4 billion case against Allied Home Mortgage and CEO Jim Hodge. We have proudly represented former Allied employees who didn’t get paid and the American taxpayers who the government says were fleeced for hundreds of millions of dollars. Naturally, we try to stay atop of all things Allied.  The latest news comes from London. Lloyds of London, to be exact. Several days ago the underwriters at Lloyds filed suit seeking to get out of paying claims on behalf of Allied.

According to the complaint, Lloyds is not obligated to defend Allied in our case because the policy excludes “deceptive trade practices” and because our fraud suit does not arise from Allied’s performance of professional services.

Since we are involved in the underlying lawsuit against Allied, we are unable to comment specifically on Lloyd’s suit. We can say, however, that insurance policies typically exclude claims of fraud from coverage. This is exactly what Lloyds claims in its suit.

The complaint brought by the government against Allied and Hodge claims that Allied “originated loans out of hundreds of branches never disclosed to HUD, submitted knowingly false statements to HUD concerning its branch operations and accumulating sanctions, and lied to conceal its dysfunctional operations from HUD.”

Lloyds says it has no duty to defend Hodge nor to pay any claims arising out of the lawsuit based on the language in its policy. The complaint says they not only want to get released from defending the case they also want the defendants to pay back any money spent by the insurer for Allied’s legal bills to date.

The noose continues to tighten around Allied, Hodge and his henchmen. Although Hodge has apparently started another mortgage company, its remains extremely unlikely that he could ever earn enough to pay all the claims against him and his companies.

A copy of the complaint is available from the United States District Court for the Southern District of New York’s PACER system. If you don’t have access, drop us a line and we will gladly send it to you.

The law firm of Mahany & Ertl represents whistleblowers in suits against banks, mortgage servicers, health care companies and government contractors. If you know of fraud in which taxpayers were harmed, give us a call. Whistleblowers are entitled to up to 30% of what is collected on behalf of the government. We also represent bank mortgage company employees with claims for unpaid commissions.

For more information, contact attorney Anthony Dietz at adietz@mahanyertl.com. For immediate help, contact attorney Brian Mahany at brian@mahanyertl.com or by direct dial at (414) 704-6731. All communications are covered by the attorney - client privilege and are kept in confidence.

Mahany & Ertl - America’s Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota. Services available in may jurisdictions.

For those wondering who Scott Anderson is, join the club. We have been asking that question too. He has “signed” hundreds of mortgage documents (if not tens of thousands) as a Vice President of MERS, the infamous Mortgage Electronic Registrations Systems, Inc. Several people, potential clients and readers of this blog have documents “signed” by Mr. Anderson. One astute person, however, realized that Mr. Anderson’s signature varies greatly. Same with the notary’s signature. (We have not compared the signatures but have absolutely no reason to disbelieve the information we have received.)

Last year, the rage was “robo-signing” by MERS and others, including some well known lenders. Robosigning occurs when a person signes hundreds or thousands of documents a day attesting that he has read each and is familiar with the transaction. That one person can be familiar with tens of thousands of mortgage files and can attest that each is accurate is a farce.

If robo-signing is bad, forgery is worse. We have been seeing and hearing of many cases where critical mortgage documents were not signed by the people who said they signed them. In other words, they are forgeries.  That a banker would forge a mortgage document is terrible. But notaries too? Apparently.

We have even seen mortgage documents signed by lawyers for the bank.  The forgeries and improperly signed documents are just starting to surface as more people become aware of the problem and more foreclosures proceed through court.

Forgery is a crime.  The banks and their lawyers might argue that it was done for “convenience” but it is still against the law. If bankers, lawyers and even notaries can freely forge documents there can be no integrity in the system.  If you are aware of forged documents that were used against you, let us know.  We are currently investigating several cases against several large lenders and foreclosure mills (law firms that represent lenders) including Bank of New York, Bank of America, Wells Fargo and Blommer Peterman. [An investigation does not mean that we have concluded any wrong doing by any party named in this post.]

And if anyone knows Scott Anderson, let him know we would love to meet him (or them).

–

Mahany & Ertl is a full service law firm. As a general rule, we do not handle foreclosure defense work. Instead, we sue lenders and loan servicers in state and federal court for their wrongful and illegal conduct.  Presently we have the largest federal false claims act case in the United States against a lender - HUD’s $2.4 billion fraud case against Allied Home Mortgage.

If you think you have a case that meets our criteria and feel that you have been denied justice, give us a call.  For a confidential consultation, contact attorney Anthony Dietz at adietz@mahanyertl.com. For immediate assistance, contact attorney Brian Mahany at brian@mahanyertl.com or by telephone at (414) 704-6731 (direct).

Mahany & Ertl - Giving Homeowners a Voice. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota.  Services available in many states.

Forged mortgage documents are nothing new. Even making that statement pains me greatly. Once upon a time, no one would dream of a bank, mortgage lender or lawyer routinely forging documents. Today, its common place. A case pending before the Florida Supreme Court is set to determine if a bank that gets caught with forged documents gets a 2nd bite at that apple. We hope the justices in Florida send a clear message to Wall Street and big lenders and answer that case with a resounding “NO”!

According to published reports, Roman Pino went through a foreclosure of his home in 2008. During the case it was discovered that critical bank documents were signed by a “robo-signer” and were improperly notarized. A deposition of the bank’s lawyers apparently revealed widespread robosigning, forgeries and back dated documents. Instead of facing trial, Bank of New York dismissed the case. Sounds like a proper ending, right?

It might be if the story ended there but it doesn’t. Bank of New York filed another suit, this time claiming they had located the “real” paperwork. In the words of writer Charles Seavey, these were the “ta da” documents, or as I call them, the “sorry judge, we lied about the original foreclosure documents but this time we are really really telling the truth so believe us.”  If this sounds far fetched, its not. We are getting ready to sue Bank of New York and their lawyers here in Wisconsin for a case with remarkably similar facts.

The question being considered by the Florida court is whether a lender can dismiss a foreclosure, only to come back and refile based on the same facts. The case was argued last week - a YouTube video of the oral argument is available here from firedoglake.com - but may take months before its decided. After listening to the entire 43 minute court proceedings it isn’t clear which way the court is leaning.

This case is significant because it is being heard by the Florida Supreme Court. Any decision would be binding on all the trial courts with that state.

Forged documents, papers that aren’t properly notarized and back dated assignments and mortgages are a huge problem. If you believe your lender foreclosed on you using forged paperwork you may have a claim against the bank, loan servicer or law firm representing the bank.

If you think you have a case and would like to confidentially discuss it with us, contact attorney Anthony Dietz at adietz@mahanyertl.com. For immediate assistance, contact attorney Brian Mahany at brian@mahanyertl.com or by telephone at (414) 704-6731 (direct).

Mahany & Ertl is a full service law firm. As a general rule, we do not handle foreclosure defense work. Instead, we sue lenders and servicers in state and federal court for their wrongful and illegal conduct including forgery. If you think you have a case that meets our criteria and feel that you have been denied justice, give us a call. Presently we have the largest federal false claims fraud case in the United States against a mortgage lender, HUD’s $2.4 billion case against Allied Home Mortgage. Large or small, we help homeowners pursue fraud cases against lenders.

Mahany & Ertl - America’s Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota.  Services available in many states.

Most of our readers know that we sue banks and mortgage lenders on behalf of homeowners victimized by predatory foreclosure practices. Lately, we have been gathering information against Wells Fargo, Bank of America, Bank of New York and others after hearing horror stories of robo-signing, forged documents and even foreclosing against a couple who never missed a payment.  The other part of our business, however, is suing banks on behalf of taxpayers. This post discusses Swiss bank UBS’ attempt to dismiss a suit against it by the Federal Housing Finance Authority.

The UBS case is much like our landmark $2.4 billion claim brought on behalf of taxpayers against Allied Home Mortgage. Many lenders misled Fannie Mae and Freddie Mac into purchasing risky or toxic mortgage debt. Most residential mortgages today are sold. That means that the bank who loans you the money to purchase your home usually doesn’t hold the paper. Once the mortgage is written, the note is sold to investors.

To insure that there is liquidity and money available for homebuyers when needed, Freddie Mac and Fannie Mae guaranteed many of those loans.  Although technically not government entities, the two agencies are backed by the government. That means when the agencies ran out of money, the government stepped in. In 2008, after running low on funds to pay the mortgage guarantees, the government took over both agencies.

Last year, the government sued UBS bank saying that it misrepresented the mortgages being sold to investors. Specifically, they say that loans sold by UBS did not meet underwriting guidelines resulting in billions of losses to taxpayers.

UBS denied the allegations and argued that the government waited too long to bring the claims. The latter point has become an issue as the housing crisis dates back to 2007 and state and federal laws say that most complaints must be brought within a few years of being discovered.

In this case, the court ruled that the Housing and Economic Recovery Act of 2008 (HERA) supercedes the normal time limits and gave the government more time to file suits - 3 years from the date it took over Freddie Mac and Fannie Mae.  HERA was rushed through the Senate during a special weekend session. It authorized the government to take over both agencies.  The judge noted that the 2008 law specifically charged the government with taking such actions as necessary to “preserve and conserve” their assets. From that language, she gathered it was Congress’ clear intent to give the government more time to bring claims.

In addition to UBS, the government filed 16 other cases against large mortgage lenders including Bank of America, Chase, Citigroup and Ally. Although its now been more than 3 years since the government took over both agencies, there is still $100 billion in claims pending. Last week’s decision should make those banks nervous.

We like the case because it reaffirms that banks can be held liable for the actions of third parties. U.S. District Court Judge Denise Cote ruled that a “defendant cannot simply claim that she blindly reported information given to her by third parties and thereby avoid liability for inaccuracies that made their way into the offering materials.”

To date the government has lost $150 billion on Freddie Mac and Fannie Mae.

Many of the largest fraud cases against lenders were started by whistleblowers - concerned workers who don’t like seeing taxpayers getting ripped off.  If you work or previously worked for a bank and know of illegal conduct resulting in losses to the government, give us a call. For more information, contact attorney Anthony Dietz at adietz@mahanyertl.com. For immediate assistance, contact attorney Brian Mahany at brian@mahanyertl.com or by telephone at (414) 704-6731 (direct). All calls are protected by the attorney client privilege and kept in strict confidence.

Mahany & Ertl is a full service law firm. As a general rule, we do not handle foreclosure defense work. Instead, we sue lenders and servicers in state and federal court for their wrongful and illegal conduct including fraud and forgery. If you think you have a case that meets our criteria and feel that you have been denied justice or know of losses to taxpayers, give us a call.

Mahany & Ertl - America’s Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota.  Services available in many states.

In order to foreclose on a home, a bank must prove that the homeowner has defaulted on the loan and that the bank owns the mortgage. Because mortgages today are routinely sold to investors, banks usually hold an assignment of the mortgage showing they are the rightful owner. As we learned in the “robo-signing” scandal, the banks often can’t prove they own the paper.

While properties were increasingly weekly, no one really worried to much about a default. The buyer could simply sell the property and every one would be made whole. Obviously, the bottom dropped out of the market several years ago. The banks dirty secrets like Robo signings and forgeries probably would have gone on forever if the market had not crashed.

During the robo-signing scandal, it became clear that the banks were using low level employees to sign affidavits attesting that the borrower was in default and that the bank held the mortgage. Often, these employees had no personal knowledge of the loan whatsoever. They simply signed hundreds of affidavits per day. These affidavits clearly were fraudulent.

More recently, we have begun to encounter loan documents that were forged!  The signatures of the borrowers or lenders were not genuine. Because most mortgage documents are notarized and forgery is a crime, the banks’ conduct has become criminal.

Notary publics are the people entrusted to witness and endorse signatures. A notary’s seal means that the notary has witnessed the signing of the document and personally knows the signers or has obtained some time of identification to verify their identity. Courts routinely accept notarized documents as authentic.

For hundreds of years, we have relied on notarized documents. As a disinterested party, all sides could generally rely on a notarized document being real. Once the banks started employing the notaries, that notion ended. In the name of “business convenience,” bankers have subverted the rule of law and the integrity of the judicial process.

Back in 1984, our U.S. Supreme Court recognized the importance of notaries and the weight their signature and seal carries. In a case challenging Texas prohibition on allowing non U.S. citizens to be notaries. The court had this to say about the importance of notaries:

“With the power to acknowledge instruments such as wills and deeds and leases and mortgages; to take out-of-court depositions; to administer oaths; and the discretion to refuse to perform any of the foregoing acts, notaries public in Texas are involved in countless matters of importance to the day-to-day functioning of state government. The Texas political community depends upon the notary public to insure that those persons executing documents are accurately identified, to refuse to certify any identification that is false or uncertain, and to insist that oaths are properly and accurately administered. Land titles and property succession depend upon the care and integrity of the notary public, as well as the familiarity of the notary with the community, to verify the authenticity of the execution of the documents…

To be sure, considerable damage could result from the negligent or dishonest performance of a notary’s duties.”

We hear that one register of deeds in North Carolina has brought suit to clean up the mess caused by fraudulent land records. Hopefully the banks that employed these dishonest notaries will be held accountable for the thousands of questionable documents recorded in foreclosure cases across the nation.

If you were the victim of a foreclosure using forged documents, you may be entitled to relief.  Courts are beginning to take notice and question banks. Although a notarized document still caries a great deal of weight, it is possible to challenge those documents. Chances are good that if properly questioned, many bank notaries will admit they never witnessed anyone sign the documents they notarized.  We are aware of one bank that apparently had the notary forge the signature of a bank officer and then notarize her own forged signature!

If you would like to confidentially discuss your case with us, contact attorney Anthony Dietz at adietz@mahanyertl.com. For immediate assistance, contact attorney Brian Mahany at brian@mahanyertl.com or by telephone at (414) 704-6731 (direct).

Mahany & Ertl is a full service law firm. As a general rule, we do not handle foreclosure defense work. Instead, we sue lenders and servicers in state and federal court for their wrongful and illegal conduct including forgery. If you think you have a case that meets our criteria and feel that you have been denied justice, give us a call. Presently we have the largest federal false claims fraud case in the United States against a mortgage lender, HUD’s $2.4 billion case against Allied Home Mortgage. Large or small, we help homeowners pursue fraud cases against lenders.

Mahany & Ertl - Giving Homeowners a Voice. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota.  Services available in many states.

More and more homeowners are securing victories within the court system. Unfortunately, only a tiny fraction of struggling borrowers can afford competent legal counsel. Many homeowners are behind on their payments because of illness, disability or lack of employment. Obviously if they had funds they could pay their mortgage and wouldn’t need a lawyer. This post is dedicated to Ana Casas Wilson, a 49 year old woman suffering from cerebral palsy ( and the misfortune to have a loan with Wells Fargo).

When Wilson was denied a HAMP mortgage modification, she decided to take her battle to the streets. In her case, from a wheelchair in the driveway of a Wells Fargo senior executive’s home. For her efforts, Wilson was arrested. But the publicity she created by exposing Wells Fargo is priceless.

Wilson says that she fell behind but qualified for the federally funded HAMP program and can make the payments. That didn’t stop Wells Fargo from foreclosing on her childhood home, however.

HAMP stands for the Home Affordable Modification Program. It was created and funded through the federal TARP program, the same program that gave billions to bail out Wall Street and big banks.  Whereas the big banks got billions, HAMP was designed to use a small portion of the bail out money to help struggling homeowners. The program is available to help those that need a little financial help through lowered payments and those that are disabled.

The HAMP program requires banks and mortgage servicers to offer relief to delinquent homeowners. Wilson says that she was improperly denied a modification and continued to face foreclosure even though she was able to make payments. According to published reports, a Wells Fargo spokesperson said that the bank is committed to helping people stay in their homes. We say Bull Shit! The spokesperson also said that once a person is serious delinquent, it is often impossible to catch up.

We have been seeing several of the major banks (Wells Fargo and Bank of America to name two) simply refuse to take the payments. It’s a vicious cycle that spells doom for homeowners.

Recently we have begun a lawsuit against Bank of America on behalf of a homeowner much like Wilson. Despite receiving the first two of three HAMP trial payments, with no reason given, the bank simply refused the third and continued with foreclosure.

In Wilson’s case, she took her battle to the pavement. Wilson and approximately 80 other protestors showed up outside the home of Wells Fargo’s CFO, Tim Sloan.  Wilson was arrested after going up Sloan’s driveway in her wheelchair to deliver her check that the bank had already refused to accept. A video is available from the website of the San Gabriel Valley Times.

If you have been the victim of forged documents, improperly denied modifications or other forms of predatory foreclosure practices, we’d like to hear your story. Currently we are seeking clients for possible class actions against Bank of America, Bank of New York and Wells Fargo.

The only things big banks fear are disabled homeowners in wheelchairs on national TV and multimillion dollar judgments. We can’t help with the former but we can and do sue America’s lending elite. Presently we have the nation’s largest federal false claims act case in the nation against a lender, HUD’s $2.4 billion suit against Allied Home Mortgage.

If you would like to confidentially discuss your case with us, contact attorney Anthony Dietz at adietz@mahanyertl.com. For immediate assistance, contact attorney Brian Mahany at brian@mahanyertl.com or by telephone at (414) 704-6731 (direct).

Mahany & Ertl is a full service law firm. As a general rule, we do not handle foreclosure defense work. Instead, we sue lenders and servicers in state and federal court for their wrongful and illegal conduct. If you think you have a case that meets our criteria and feel that you have been denied justice, give us a call.

Mahany & Ertl - Giving Homeowners a Voice. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota.  Services available in many states.

Big banks have not been getting good press these days and this post is no exception. Earlier this year, TD Bank suffered a startling setback when it was found to have “aided and abetted” fraud. A civil jury then sanctioned the bank with a $67 million dollar judgment. Do you think they learned a lesson? Apparently not.

Now, according to published reports, the bank recanted statements it had made about a key piece of evidence that the bank said didn’t exist. Lawyers for the opposing party say the document produced had been altered.

The case involves a civil suit brought by a victim of the $1.2 billion Ponzi scheme involving Florida attorney Scott Rothstein. Investors and creditors will likely never see any money from Rothstein who was recently sentenced to 50 years in prison. Some investors claimed, however, that TD Bank knew of Rothstein’s problems but didn’t want to lose the millions of dollars he kept in their bank. Instead, they claim the bank turned a blind eye and did not warn anyone. Evidently the jury agreed.

The judge hearing the case is reportedly considering sanctions against both the bank and their lawyers.

Although the case against TD Bank is not a mortgage fraud case, we have been seeing a dramatic rise in foreclosure cases in which the homeowner alleges the mortgage documents were forged!  Unfortunately, many of the forged documents cases we see involve big banks. (TD Bank operates in 16 states and employs over 26,000 people.)

If you have a case involving forged loan, assignment or mortgage documents, we want to hear your story. Currently we are getting ready to file a major complaint against Bank of America for similar behavior.  Bankers and lawyers that forge documents and lie to courts must be held accountable.

The fraud lawyers at Mahany & Ertl have helped many victims of predatory lending, foreclosure abuse and bank fraud. In most situations, fraud cases can be handled on a contingent fee basis meaning no legal fees unless we win and collect. For more information, contact attorney Brian Mahany (bank fraud cases) at (414) 704-6731 (direct) or by email brian@mahanyertl.com. For mortgage fraud cases, contact attorney Anthony Dietz at adietz@mahanyertl.com.

Mahany & Ertl - America’s Fraud Lawyers. We are proud to give homeowners a voice from our offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota. Foreclosure defense  services available in many locations.

Democrats in the California Assembly’s Banking and Finance Committee derailed two important pro-homeowner bills aimed at curbing foreclosure abuse.  In a surprise move, the democratic legislators sided with the pro business Chamber of Commerce moments before Attorney General Kamala Harris was to testify in support of the measures.

Democrats siding with the Chamber is a bit odd. That the chamber would side would big banks is unfortunately not surprising.

One measure would prevent lenders from foreclosing while at the same time negotiating a mortgage modification. We have seen several instances where one bank employee is telling a homeowner that they must leave the property while someone else in the same bank is actively negotiating a loan modification. It sounds crazy but we have seen Bank of America and several other lenders that just don’t seem to have a clue what is going. It’s like a ship with no captain and no one on the bridge to give instructions.

The second bill was aimed at robo signing. Often we see foreclosure paperwork but no telephone number to contact the person signing the affidavit or foreclosure papers. The bill would require lenders to offer a single point of contact for homeowners in foreclosure or restructuring. We are aware of one one woman in Massachusetts who was asked to provide virtually the same documentation for her HAMP loan modification 42 times. For months, someone different would call almost everyday from a call center claiming that some piece of documentation was missing even though it had already been sent.

Unfortunately, the $25 billion mortgage industry settlement has not seemed to curb the abuses by the large lenders. Not a week goes by that we don’t hear many stories of foreclosure abuses including homeowners promised a modification only to have it mysteriously pulled and homeowners foreclosed upon even though they timely made all of their payments!

If you have suffered from predatory lending or foreclosure abuses, please contact us. We are not a foreclosure defense firm - the cases we take are lawsuits against banks and lenders for illegal lending, loan modification and foreclosure practices. If you suffered a particularly bad experience, we certainly want to listen.

Our mortgage fraud team is currently co-counsel in the largest federal false claims act case in the nation, the $2.4 billion action on behalf of HUD against Allied Home Mortgage. Large or small, every case is important to us.

For more information, email attorney Anthony Dietz at adietz@mahanyertl.com or attorney Brian Mahany at brian@mahanyertl.com. For immediate assistance, contact Brian by phone at (414) 704-6731 (direct). All inquiries are held in strict confidence.

Mahany & Ertl, America’s Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota. Services available in many jurisdictions.

We have been saying for several months that the tide is beginning to turn against big banks and mortgage lenders. Many courts are beginning to get fed up with the abusive practices of lenders. Recently several state supreme courts have been weighing in on a wide variety issues including missing paperwork, forged affidavits, questionable title and abusive foreclosure or loan modification practices.

When a state supreme court decides a case, the decision takes on considerable weight. As the highest court in the land, a state supreme court decision is generally binding on all trial courts in that state. We were happy to learn that the Oklahoma Supreme Court decided 7 cases this month in favor of homeowners.

The facts in each of the cases were similar.  In each case, the court ruled that in order to bring a foreclosure action, the plaintiff must prove that it has the right to enforce the promissory note. No note means no standing to bring the complaint.

It’s in the details that the Oklahoma cases become important.

Many lenders have problems producing the note and mortgage.  In recent years, most lenders sell the mortgage shortly after the closing. Banks rarely hold their own paper any more. The mortgages are often packaged, securitized and sold several times. In that process, paperworks frequently is lost. The lost or incomplete paperwork issue was addressed by the court.

The Oklahoma Supreme Court opinion is helpful to homeowners in several ways.

First, the court reaffirmed that the plaintiff must prove it has the right to enforce the note. Courts shouldn’t simply rely on an affidavit from a lawyer saying the bank or servicer has the right to enforce the note. They must prove it.

Next, the court said that the foreclosing party needs to have the note. Just having an assignment of mortgage is not enough.  (Often the servicing bank will draft an assignment of mortgage. That requires the lender’s signature. The note, obviously, contains the borrowers signature. If documents are missing it is much easier for a lender to forge a mortgage assignment than to forge a homeowners signature.)

FInally, the court said that the lack of standing (missing note) can be raised at any time. That can be extremely important in foreclosure cases. Often borrowers seek legal counsel after a judgment of foreclosure has issued. Many folks don’t seek legal help until well into the foreclosure process. By the time a lawyer gets the case, discovery periods have elapsed and often there is already a judgment of foreclosure. The Oklahoma court said as long as the case isn’t closed, its not too late to challenge jurisdiction.

Postscript- There are tens of millions of homeowners under water. Many are facing foreclosure. Unfortunately, there are few lawyers that truly understand how to fight big lenders and even fewer actually willing to do so. If you are facing foreclosure, seek professional assistance as soon as possible. Don’t settle for a bankruptcy lawyer or a fly by night foreclosure “rescue” consultant. Foreclosures can be won but it’s not easy.

The average cost for a lawyer to file an answer and defend a foreclosure action is between $2500 and $5000. While there are some highly qualified lawyers that do this work, we think the only thing big banks understand is a counterclaim and aggressive lawyer.

Everyday we receive calls from homeowners across the U.S. Although we write about foreclosure defense, we rarely take such cases. Our primary purpose in writing is to provide general information and offer hope. The cases we do take are lawsuits against banks and lenders for illegal lending, loan modification and foreclosure practices. If you sufered a particularly bad experience, we certainly want to listen.

Our mortgage fraud team is currently co-counsel in the largest federal false claims act case in the nation, the $2.4 billion action on behalf of HUD against Allied Home Mortgage. Large or small, suing banks and getting justice for victims of predatory lending and foreclosure practices is what we enjoy.

For more information, email attorney Anthony Dietz at adietz@mahanyertl.com or attorney Brian Mahany at brian@mahanyertl.com. For immediate assistance, contact Brian by phone at (414) 704-6731 (direct). All inquiries are held in strict confidence.

Mahany & Ertl, America’s Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota. Services available in many jurisdictions.

Because we represent homeowners, mortgage company employees and sometimes the interests of taxpayers (federal false claims act cases), we see new frauds and shady deals in the lending industry just about everyday. Some, like forged documents and phony appraisals, are pretty obvious. Others such as sham “marketing services agreements” are tougher to spot.

To understand the scam, one needs to first understand the law. The Real Estate Settlement Procedures Act (”RESPA”) and HUD rules say that mortgage lenders can’t pay kickbacks or referral fees. The reason for the law is simple. HUD wants to insure that potential borrowers are steered to quality lenders, not to the the lenders who are making illegal kickbacks. As we all learned in 2008, shady loans are the first to default. Because so many home mortgages are insured or backed by the government, taxpayers are often left holding the bag when a loan defaults.

Federal law does allow lenders to help defray legitimate marketing costs, however. These payments usually come in the form of a marketing services agreement or “MSA”. Because some payments are allowed while others are not, the lines between legitimate and illegal payments can get pretty fuzzy.

Lately HUD has been cracking down on lenders who try to disguise referral fees as some other legitimate payment. HUD looks at the reasonable value of the service performed and compares it to the payments made by the lender. The regulations say that there must be a reasonable basis for the amount of the payment.

The penalties for an improper marketing payment include audit, fines and even revocation of the ability to offer loans backed by the government.

This probably sounds quite dry but improper marketing services agreements have cost taxpayers millions of dollars. Ultimately, these kickbacks were part of the reason the entire lending industry teetered on collapse and the housing market crashed. That means that not only do taxpayers lose but so does everyone who is “underwater” on their mortgage.

If you have nonpublic information about lenders using improper marketing services agreement, you may be entitled to a cash award under the federal false claims act. That law empowers whistleblowers to file an action in the name of the government and keep a percentage of any monies recovered.

Recently, many of the largest fraud cases against U.S. lenders were started by whistleblowers. They are the new American heroes.

If you have inside information about improper MSA’s or any type of illegal lending, underwriting, loan modification or foreclosure practices, give us a call. Our mortgage fraud lawyers currently have the largest false claims act case in the U.S., HUD’s $2.4 billion case against Allied Home Mortgage. We certainly understand the industry and enjoy helping whistleblowers collect their fair share of awards while also putting a stop to fraud.

For more information, contact attorney Anthony Dietz by email at adietz@mahanyertl.com or attorney Brian Mahany at brian@mahanyertl.com. For immediate attention, contact attorney Brian by telephone at (414) 704-6731 (direct). All inquiries are protected by the attorney client privilege and kept in complete confidence. We can help you determine if you are entitled to an award.

Mahany & Ertl - America’s Fraud Lawyers. We proudly give a voice to whistleblowers throughout the United States. Our offices are in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota.  Services available in many jurisdictions.