Despite their national application, servicing regulations regarding FHA loans are not applied consistently among all State jurisdictions. Notably, in the event of a mortgagor’s payment default, HUD regulations require mortgagees of HUD-insured mortgages to “have a face-to-face interview the mortgagor or make a reasonable effort to arrange such a meeting, before three full monthly installments […]
A circuit court judge in Kane County, Illinois dismissed Freedom Mortgage Corporation’s (Freedom) foreclosure based on Freedom’s failure to comply with federal HUD regulations codified at 24 C.F.R. § 203.604(b)-(d). Freedom Mortgage Corp. v. Olivera, et al., 2021 Il. App. (2d) 190462, Case No. 2-19-0462 (Ill.App.2 Dist. August 5, 2021). In pertinent part, § 203.604 […]
The Second District Appellate Court of Illinois affirmed the lower court’s dismissal of Freedom Mortgage Corporation’s (Freedom) foreclosure based on Freedom’s failure to comply with federal HUD regulations codified at 24 C.F.R. § 203.604(b)-(d). Freedom Mortgage Corp. v. Olivera, et al., 2021 Il. App. (2d) 190462, Case No. 2-19-0462 (Ill.App.2 Dist. August 5, 2021). Section […]
In 2013 the Chicago City Council enacted the Keep Chicago Renting Ordinance (KCRO or Ordinance) to “preserve, protect, maintain and improve rental property and prevent occupied buildings from becoming vacant after foreclosures.” Pursuant to that Ordinance, Rivera, a tenant of a foreclosed property purchased by Bank of New York Mellon (the Bank), filed a lawsuit […]
In 2013, the Chicago City Council enacted the Keep Chicago Renting Ordinance (KCRO or Ordinance) to “preserve, protect, maintain and improve rental property and prevent occupied buildings from becoming vacant after foreclosures.”i. The Ordinance required the “owner of a foreclosed property to offer qualified tenants either a $10,600 relocation fee or extend the tenant’s lease […]
The Illinois Supreme Court accepted jurisdiction and consolidated two appeals to consider the constitutionality of section 15-1504-1 of the Illinois Code of Civil Procedure (“Code”) and sections 7.30 and 7.31 of the Illinois Housing Development Act (“Act”). Walker v. Chasteen, 2021 IL 126086 (IL June 17, 2021). The Code created a $50 add-on filing fee […]
The Illinois Supreme Court accepted jurisdiction and consolidated two appeals to consider the constitutionality of section 15-1504-1 of the Illinois Code of Civil Procedure (“Code”) and sections 7.30 and 7.31 of the Illinois Housing Development Act (“Act”).i Walker v. Chasteen, 2021 IL 126086 (IL June 17, 2021). The Code created a $50 add-on filing fee […]
The United States Supreme Court reversed the holdings of several bankruptcy courts and federal appellate courts in its recent holding in City of Chicago, Illinois v. Fulton, 19-357, 2021 WL 125106 (U.S. Jan. 14, 2021). The Court reviewed several bankruptcy cases which involved the City of Chicago (“City”) impounding the debtor’s vehicle “for failure to […]
The United States Supreme Court reversed the holdings of several bankruptcy courts and federal appellate courts in its recent holding in City of Chicago, Illinois v. Fulton, 19-357, 2021 WL 125106 (U.S. Jan. 14, 2021). In Fulton, the Supreme Court accepted jurisdiction to review a consolidated appeal from the 7th Circuit Court of Appeals and […]
The Northern District of Illinois recently dismissed an action filed by mortgagor Jason Roberts (“Roberts”) against his servicer (“Carrington”) for alleged violations of state law and the Fair Debt Collections Practices Act (“FDCPA”). Roberts v. Carrington Mortgage Services, LLC, 19-CV-2355, 2020 WL 6565247 (N.D. Ill. Nov. 9, 2020). Roberts alleged that Carrington was prohibited from […]
