A loan servicing expert witness may sometimes be required when disputes arise in the loan servicing process. Loan servicers, borrowers, and in some cases, other parties to loan servicing may find themselves in disputes over one or more aspects of real estate loan servicing.
Expert witness testimony may be helpful to the triers of fact in clarifying many of the various practices, standards, and interactions that occur between the parties mentioned.
The loan servicing expert witness may provide information during the consulting phase of the engagement as well as at deposition that may assist the parties in reaching a settlement. Where no settlement is reached, information provided may still assist both the parties and the triers of fact by clearing up confusion that may exist about certain aspects of loan servicing.
Mortgage loan servicing expert witness testimony may related to different sets of circumstances than those found in typical mortgage litigation. Loan servicing expert witness testimony may relate to loan modification, foreclosure, application of payments, non-payment of insurance or property taxes, loan servicing-related aspects of repurchase requests, and the standard of care for loan servicers and the loan servicer’s duties, among other topics. In California, the Homeowner’s Bill of Rights, and on a Federal level, requirements under Dodd-Frank Legislation, as well as regulatory requirements imposed by the CFPB (Consumer Financial Protection Bureau) add additional layers of complexity and the potential for disputes in the servicing of real estate loans or mortgages.
The servicing of consumer loans, particularly loans where borrowers occupy the collateral as their primary residence, are more likely to be the subject of loan servicing litigation.
“Loan servicer,” as used here, applies to either third party loan servicers, who service loans on behalf of others, or lenders acting as servicers in servicing their own loans.