Opinion: Court Decision Redefines Covered Errors in Mortgage Servicer Loss Mit

National Mortgage News, Feb. 11, 2022–Dayna Chucta, Adam Swanson (subscription)
A Second Circuit decision, Naimoli v. Ocwen Loan Servicing, issued in January, now provides that a loan servicer’s errors in handling a loss mitigation application are covered errors relating to the servicing of the mortgage — an important distinction under the Real Estate Settlement Procedures Act. The ruling could have a chilling effect on loss mitigation and may open the door to new damages claims by borrowers.
https://www.nationalmortgagenews.com/opinion/court-decision-redefines-covered-errors-in-mortgage-servicer-loss-mit