Wednesday, October 20, 2010

K&L Gates creates foreclosure task force for mortgage servicers

Amidst elevating scrutiny in the mortgage servicing industry, K&L Gates want to help mortgage servicers fight back.


The international law firm assembled a foreclosure task force to coach lenders on formulating a "coordinated, nationwide defense" against fraud allegations and cited discrepancies in servicing procedures.

"Servicers are being attacked by a variety of forces that we think require a comprehensive approach to foreclosure issues," said company representative Larry Platt.

K&L Gates is currently working with 10 to 12 loan servicers, none of which have been sued yet. However, they have received threats, Platt said. K&L Gates' goal is not only to represent and counsel servicers on a strong defense, but also prepare for the inevitable hearings that will be held on Capitol Hill about the subject.

"We've begun the compliance counseling, but the idea in part was to get ready," Platt told HousingWire. "We can deal with the short term, but we need to be prepared for the long term."

Read on.

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