The Federal National Mortgage Association (FNMA), more commonly known as FANNIE MAE announced today they will no longer be using well-known Denver foreclosure law firms; Castle Law Group and Aronowitz & Mecklenburg.
Fannie Mae had suddenly terminated its relationship and has ceased doing business with both Castle and Aronowitz. Fannie Mae is known for having strict guidelines and low tolerance for violations of any kind.
Fannie Mae has already turned referrals of new foreclosure cases, and transferred existing cases to other law firms.
There has not been any formal comments from the Government-Sponsored Enterprise (GSE) who oversee Fannie Mae although it has been commonly reported the two law firms have been under the Colorado Attorney General’s (AG) investigation for allegedly overcharging fees in serving foreclosure notices to homeowners.
The Denver Post wrote recently, the AG’s office claimed one of the law firms “misrepresented its costs and charged more than twice what it paid for posting services”.
The investigation of these billing discrepancies from Castle Law Group and Aronowitz & Mecklenburg led to the finding of overcharging their foreclosure costs. Those costs were then passed on to the banks and then to homeowners. There were also claims of collusion and price fixing among foreclosure law firms in the state as well as reported by the Denver Post and as alleged in several Attorney General pleadings.
The Attorney General’s investigations helped push Colorado state legislature to create new bills to help homeowners in foreclosure.
Real Estate and Foreclosure Defense Attorney Keith Gantenbein helped draft Representative Beth McCann’s bills, HB 14-1130 called “Foreclosure Cure Remit Unpaid Fees to Borrower Act” and HB 14-1295 requiring a single point of contact for a borrower when negotiating a loan modification and prohibits Dual Tracking. Gantenbein also testified for both bills.
HB 14-1130 passed almost unanimously by the state Senate committee last Tuesday, April 8th. There were 64 votes in favor, 0 votes against and 1 vote defined as ‘other’.
HB 14-1295 passed the Senate Second Reading yesterday, April 10th.
Gantenbein has been working extensively with Rep. Beth McCann, who, along with Senator Jessie Ulibarri have all been concerned with numerous foreclosure issues and homeowner complaints that have been plaguing Colorado.
It is unclear at this time, whether the Federal Home Loan Mortgage Corporation (FHLMC) known as FREDDIE MAC, the brother of FANNIE MAE, will also be terminating all their business with Castle Law Group and Aronowitz & Mecklenburg as well.
Keith A. Gantenbein, Jr. is a licensed, Colorado foreclosure defense attorney and real estate attorney located in Denver and servicing all of Colorado. His foreclosure defense practice includes foreclosure prevention, foreclosure assistance, loan modifications, short sales, and all other foreclosure defense legal assistance. He also handles real estate closings, title issues, lien issues, quiet title, real estate contracts, bankruptcies, mortgage negotiations, lender liability, real estate, civil litigation, contracts and landlord/tenant.
If you think you will be facing foreclosure, or are in the foreclosure process, or have had a wrongful foreclosure, contact Keith Gantenbein at (303) 618-2122 for a one-hour consultation where he will discuss your situation and go over all your options with you.