January 29, 2013

Jonathan Pompan quoted on mortgage foreclosure ruling in Law360

1 min

Venable partner Jonathan Pompan was quoted in a January 28, 2013 Law360 article on the Sixth Circuit’s recent ruling that mortgage foreclosure actions debt collections under the Fair Debt Collection Practices Act (FDCPA). The court’s ruling could provide consumers and the Consumer Financial Protection Bureau (CFPB) with a new opportunity to go after law firms and mortgage servicers for mishandling foreclosure actions.

“This has been brewing for a while,” Pompan said commenting on the rulings impact. “Given how frequently mortgages are sold and servicing rights are switched, there's some degree of added exposure based on common business practices.” Speaking about the ruling’s impact on CFPB enforcements practices, Pompan said, “The bureau hasn't directly discussed [the FDCPA], but certainly there's a lot of writing on the wall… The likelihood is that the bureau would consider [foreclosures] fair game.”