Friday, October 28, 2011

Loan Servicers To Think Twice About Filing Faulty Foreclosure Docs In Nevada As Potential Felony Charges Could Loom Under New State Law Now In Effect

Housing Wire reports:

  • Many mortgage servicers stopped initiating foreclosures in Nevada because of a new law, which carried threats of criminal penalties for faulty filings.

  • Assembly Bill 284 took effect Oct. 1, making it a felony if a mortgage servicer or trustee made false representations concerning a title. There also will be a $5,000 fine assessed if fraud, such as robo-signing, is detected. The new law requires servicers to provide a new affidavit that provides the amount due on the mortgage, who is in possession of the note and who has the authority to foreclose.

For more, see Potential felony charges make servicers pause Nevada foreclosures.

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