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America's Servicing Company / Unlawful charge of prepayment penalty

1 United States Review updated:

I sent this to the Attorney General:

My mortgage loan was recently bought from Countrywide Home Loans by America’s Servicing Company. This coincidentally happened in the same month in which I sold my home and closed on it. There was some hassle with transferring my January payment over, but the biggest complaint is in regards to a prepayment penalty showing up on my payoff statement. I live in the state of MN where these penalties do not apply, so I contacted them, let them know that this needed to be removed, and explained why. This request was DENIED even after the requested purchase information & HUD was given to them (I have the denial letter from them). There were several long frustrating phone calls I went through to fight for this before, and well after my closing. I ended up having to fax them the portion of the law before finally waiving this fee.

If I didn’t know about this, I would have most definitely been erroneously charged this percentage for the prepayment penalty. Not only did I point this out to them that this was a mistake, but I was blatantly denied the request to waive this fee.
After faxing the statute of the MN law to their legal department that states I should not be charged, I finally talked with a representative this morning who told me I would indeed be refunded this money and the waiver was granted.

All requested information was faxed with of the appropriate documentation stating that this was a purchase in Minnesota and included my HUD.
They had told me that this original request to waive the penalty was reviewed and denied by their legal department.
I, the customer, had to fax the portion of the law to ACS after the 1st denial to show them that they cannot charge me for this.
My title company mentioned that this was the most difficult company they have ever worked with and they were very uncooperative. I had given my permission to ASC for someone at the title company to speak on my behalf and ASC would not speak with her about my loan.
It was always very difficult to get a straight answer and had to re-explain my story every time I called, and there were even cases where the representative would not tell me their name and/or would ignore my questions. One representative told me he would call me back, which never happened (and he was EXTREMELY rude to me).

Despite the fact ASC has told me I will be refunded shortly, I want to bring this to your attention. I think it’s very safe to assume that others have been inaccurately charged this and will most likely continue to get charged. I feel this is a significant amount of money (2% of the total loan amount I believe), and I feel this is unjust.

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  • We
      30th of May, 2013
    0 Votes

    here's the rub
    America's Servicing Company is an alias or DBA of Wells Fargo Bank, N.A.
    Wells Fargo being a National Bank is not controlled by state law as long as they are the originating lender / creditor
    state laws are not instructive to national banks
    HOWEVER if ASC is acting as a loan servicer for some other non-national bank lender, then they have to pay attention and follow state laws. Look this up in "Cuomo v Clearing House" a US Supreme court decision
    Cuomo has displaced "Waters v Wachovia" as precedent per the Frank-Dodd act
    that's why the Republicans hate the Frank-Dodd act

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