Loan Mod Waivers

Paul,

Is it true that voluntary agreements the banks are sending to clients to modify their loans may have traps in giving away clients valuable legal rights to sue them after the acceptance to go after them later for TILA, GFE or other violations and infractions?

thank you

William

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Hello William,

The Supreme Court decided in Brooklyn Savings Bank v. O’Neil, 324 U.S. 697 (1945) that:

“..a statutory right conferred on a private party, but affecting the public interest, may not be waived or released if such waiver or release contravenes the statutory policy..”

And of course, as a result Forbearance & Loan Modification Waivers are Unenforceable with regards to the TILA (and RESPA, UDAP, etc.).

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.