First, Bank of America extended a loan modification offer to a woman who inherited her son’s home. Then, the bank didn’t confirm the modification. The bank accepted payments under the modification agreement anyway, but later rejected them, saying the homeowner was “not in the system.” The homeowner continued to make her payments on time, but the bank rejected them, saying they were not certified. The bank initiated foreclosure proceedings, but repeatedly stayed and rescheduled them. In a case where the plaintiff seemed to do everything right, a court ultimately denied in part and affirmed in part her RESPA claims — and the difference seemed to be new obligations promulgated by Regulation X. Read on to find out how new regulations ultimately swayed the outcome of this complex case.
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