COVID 19 mortgage forbearance

Stop the Fraud! Mortgage Servicers and Lending May Be Ripping Off Homeowners (Again) – CARES Act COVID 19 Mortgage Forbearance Ripoff Investigation

Important Information for Veterans and Other Homeowners Seeking Hardship Forbearance

The mortgage fraud lawyers at Mahany Law are investigating reports that Dovenmuhele Mortgage and Royal Pacific Funding have been illegally charging veterans hundreds of dollars for appraisals. Under the federal CARES Act, veterans seeking a COVID 19 mortgage forbearance shouldn’t be charged fees for appraisals.

According to a report we received, Dovenmuhele, as loan servicer for Royal Pacific Funding has been charging veterans seeking a COVID forbearance up to $500 in appraisal fees. If true, this could be serious violation of federal law.

CARES Act and COVID 19 Mortgage Forbearance

If you are experiencing difficulty making on-time mortgage payments due to the national coronavirus emergency, forbearance may be an option for you. Congress passed the CARES Act to help Americans who may be struggling to pay their mortgage and other government backed debts such as certain student loans.

Forbearance can help homeowners get back on their feet during short-term financial difficulty.

Forbearance is when your mortgage servicer – that’s the company that sends your mortgage statement and manages your loan – or lender allows you to pause or reduce your payments for a limited period of time.

Forbearance does not erase what you owe. You’ll have to repay any missed or reduced payments in the future. If you have a mortgage backed by the VA, FHA, Fannie Mae, Freddie Mac or the USDA, you should be eligible for relief if you are experiencing financial difficulty due to the impact of COVID 19 on your finances.

Assuming you have one of these mortgages – most mortgages are backed by one of the above agencies – you had a right to request forbearance for up to one hundred eighty days. You also have the right to request an extension for up to an additional one hundred eighty days.

Under the CARES Act, the lender or servicer should not add any additional fees, penalties or interest added to your account. This includes appraisal fees. (Your regular interest still accrues during the forbearance.)

Other than telling your servicer that you have a pandemic-related financial hardship, you won’t need to submit additional documentation to qualify for this forbearance. Normally, a servicer may seek to charge processing fees or obtain a pricey appraisal but that shouldn’t happen for COVID hardships.

According to information we received, Dovenmuhele Mortgage and Royal Pacific Funding are breaking the law by charging vets with VA mortgages appraisal fees.

Dovenmuhele Mortgage and Royal Pacific Funding

Dovenmuhele Mortgage Inc claims to be one of the oldest mortgage servicers in the nation. It is also one of the largest. Take a look at some of the reviews, however, and it’s clear that simply because they are big or have been around for a long time doesn’t mean they are doing a good job. BBB says their customer reviews average just one out of five stars. Read the reviews yourself, they are shocking.

Royal Pacific Funding has somewhat better reviews but they are still no one we want to do business with. One of the most recent reviews says, “This company single handedly ruined my home buying experience.”

We aren’t sure who is responsible for charging vets for appraisal fees but it’s wrong and illegal. And we don’t know if it’s happening with respect to other fees and on other government backed mortgages (VA, FHA, Fannie Mae, Freddie Mac, HUD, USDA).

That is where you can help. We are seeking veterans and any other holders of government backed mortgages who may have been charged for appraisals or other fees after seeking a COVID 19 mortgage forbearance. Our team of mortgage fraud lawyers have collected millions of dollars from mortgage companies. If you were wrongfully charged a fee or are aware of other CARES Act violations, we want to hear from you.  

Contact us online or by email at brian@mahanylaw.com. We are considering a class action and cannot accept telephone calls at this time nor can we provide individual representation. (We know that finding a lawyer to take a $500 case is difficult. That is why we are investigating Dovenmuhele and Royal Pacific as a possible class action case.

Dovenmuhele Sued Last Year for Cares Act Violation!

In 2020, Linda Fisher sued Dovenmuhele Mortgage for violating the CARES Act. Linda is a resident of Fair Oaks, California and a senior citizen. As noted above, the Act requires mortgage servicers to offer those seeking a COVID hardship forbearance a 180 day forbearance. Upon application by the homeowner, that forbearance can be extended another 180 days.

Ms. Fisher says that Dovenmuhele ignored the law and instead only offered her a 90 day “forbearance plan.” Although it was none of Dovenmuhele’s business, Ms. Fisher’s work as a work at home bookkeeper dried up during the pandemic forcing her to seek the forbearance.

Under the law, Dovenmuhele doesn’t have the right to ask questions or make their own determination of need. Ms. Fisher’s loan was federally insured. The law says,

“Upon receiving a request for forbearance from a borrower under subsection (b), the servicer shall with no additional documentation required other than the borrower’s attestation to a financial hardship caused by the COVID–19 emergency and with no fees, penalties, or interest (beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract) charged to the borrower in connection with the forbearance, provide the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower, provided that, the borrower’s request for an extension is made during the covered period, and, at the borrower’s request, either the initial or extended period of forbearance may be shortened.”

Shortly after the case was filed, the case was dismissed. Banks typically settle cases with a confidentiality order meaning we have no information as to why the case was dismissed. We strongly suspect Dovenmuhele bought silence by paying Ms. Fisher off.

Seeking Information about CARES Act Violations

We need your help!

Once again, we are investigating Dovenmuhele Mortgage and Royal Pacific Funding for fraud. We are also interested in any other mortgage servicer that might be violating the CARES Act and charging illegal fees. The Mahany Law team of mortgage fraud lawyers have already collected millions of dollars from mortgage companies. If you were wrongfully charged a fee or are aware of other CARES Act violations, we want to hear from you.

Contact us online or by email at brian@mahanylaw.com. We are considering a class action and cannot accept telephone calls at this time nor can we provide individual representation. (We know that finding a lawyer to take a $500 case is difficult. That is why we are investigating Dovenmuhele and Royal Pacific as a possible class action case.

Are you an insider working for a lender or servicer? Please contact us, all information will be kept confidential.

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