Another Spectacular Display of Government Collusion with Big Banks: Specialized Loan Servicing Pays $1.25 Million for Failing to Comply with RESPA on $112 Billion in Claimed “Loans”

The consent order requires SLS to pay $1.275 million in monetary relief to consumers in the form of redress and waiver of borrower deficiencies, pay a $250,000 civil money penalty, which will be paid to the Bureau and deposited into the Bureau’s Civil Penalty Fund, and implement procedures to ensure compliance with the Real Estate Settlement Procedures Act (RESPA) and its implementing regulation, Regulation X.

A copy of the consent order filed with the Bureau is available at:

I continue to be infuriated by regulators who now know the extent of illegal collection, administration and enforcement of transactions with homeowners. The entire industry that calls itself “servicers” is mostly comprised of a fully paid, indemnified coverup of false claims leading to collection of money and forfeiture of homes that are admittedly wrongfully foreclosed but the agency refuses to require the players to undo false, illegal and fraudulent foreclosures.

The Bureau’s investigation found that since January 2014, SLS violated RESPA and Regulation X by taking prohibited foreclosure actions against mortgage borrowers who were entitled to protection from foreclosure, and by failing to send or to timely send evaluation notices to mortgage borrowers who were entitled to them.  These violations also constitute violations of the Consumer Financial Protection Act of 2010. In some cases, SLS’s violations of Regulation X short-circuited the protections against foreclosure for consumers whose homes were ultimately foreclosed upon. [e.s.]

So if you want to know why this is happening, look in the mirror. You are a voter. So if you don’t vote for people who are likely to require enforcement of our laws to protect consumers and homeowners, you are part of the problem.

And if you are not interested in being part of a homeowners association that defends and lobbies for laws that strengthen protection for homeowners, you are allowing this to continue. One way or the other, it will visit your doorstep. It will be either in the form of your own home or the effects of someone else’s problem that reduces the valuation of your home.

Think I’m overstating? Google “mortgage meltdown” or “2008 financial crisis.” Or better yet Google history of “TARP” where the definition went into constant change mode. Get the facts. Then decide for yourself based upon facts.

5 Responses

  1. Specialized Loan Servicing. Foreign owned criminals. They are currebtl The fraudulent Plaintiff in my Fraudclosure complaint That I’m defending pro Se. They own nothing. They lent nothing. Their statements change the balances and back dated the old balances too. They are Standing in place of Freddie Mac to lie and steal houses in courts across America.

    Anyone need any proof of SLS fraudulent documents. Just give me a holla back.

  2. And is there any accounting of just when, where and to who all these alleged fines, the entire illegal, immoral, fraught with fraud and forgery Banking/Lending Industry has been “required to pay” actually… I don’t mean allegedly… I mean actually… gets paid? Or are “we the People” relying on the Banks/Lender’s collusionist partners “our own Govt.!) to be honest with us in saying they’re receiving it?

  3. Vote for who? The whole financial crisis was “approached” by the Dems — they did nothing. They allowed a few big settlements with the banks – with nothing for borrowers. This administration cannot undo what the Dems did. Perhaps, Dems are are better at attacking banks, but they cannot undo what they already did. That is why we only get a slap on the wrist. We need far more than a RESPA violation.

    And, I have tried to join the effort for homeowners new group. I am not in foreclosure – I just want to help. They just stopped emailing me. They do not respond when I ask why.

  4. Shapiro & Ingle – bunch of crooks – part of Gerald Shapiro’s thugs “LOGS” Law Offices of Gerald Shapiro – is as corrupt as they come – as usual the CFPB is absolutely useless – both administrations under Bush-Obama-Trump have done nothing to protect the rights of US Citizen Consumers – maybe this ‘plague’ will become a plague on their own houses . . . karma can be a bitch, let’s hope.

  5. One more gentle tap on the wrist. Absolutely sickening.
    As stated in a prior post. Their shenanigans with the cooperation of Shapiro & Ingle as well as numerous RESPA / CFPB violations ultimately forced us into a financially punitive Chpt. 13 filing and again the crooks are gently asked to not do it again ? ! ? !
    Neil, I wholeheartedly agree with the voter approach but aren’t
    the heads of the various agencies appointed by the administration
    in place at the time ?

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