Migliaccio & Rathod LLP is currently investigating widespread consumer complaints about improper fee and payment misapplication by mortgage servicers across the United States. Many borrowers who mailed timely mortgage payments within the contractual grace period have been unfairly charged late fees due to servicers delaying the crediting of payments, raising concerns over deceptive mortgage servicing practices.
Improper Fee and Payment Misapplication
Mortgage servicers are generally required to credit payments as of the date they are received at the designated payment address. However, some servicers have been reported to systematically delay processing payments received within the grace period, only crediting them after late fees have already been imposed. Borrowers with proof of timely payments, such as USPS tracking or certified mail receipts, have nevertheless faced wrongful late fee assessments and payment misapplication.
Investigations and legal claims suggest these servicers may be violating federal laws like the Real Estate Settlement Procedures Act (RESPA), which requires timely crediting of payments and proper handling of borrower disputes. Despite knowledge of these legal obligations, some servicers allegedly continued these improper practices, causing significant financial harm and stress for homeowners.
Common Borrower Complaints Include:
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Unjustified late fees despite timely mortgage payments
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Payments improperly applied to fees rather than principal or interest
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Servicer failures to respond adequately to borrower disputes and inquiries
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Resulting financial hardship and credit damage
Are You Affected by Improper Late Fees or Payment Misapplication?
If you believe you have been charged wrongful mortgage late fees or experienced payment misapplication by your mortgage servicer, Migliaccio & Rathod LLP wants to hear from you. You may have legal rights to challenge these practices and seek compensation.
Your information will be kept confidential and used only to evaluate your potential claim. By contacting us, you consent to the collection and review of your details for these purposes.