Mortgage Servicer's Law Firm, Foreclosure Rescue Operator Hammered By U.S. Trustees In Bankruptcy Cases

On the TPMCafe blog, Warren Reports on the Middle Class reports:

• [In bankruptcy cases] Seeing a few [U.S.] trustees step up to discipline mortgage lenders and servicers is a heartening development. [R]ecent examples (PDF) of activism by Trustees include an action in Pennsylvania against a firm that promised to save homes from foreclosure, but actually provided almost no services in exchange for its fees. In Texas, a Trustee is moving against a large mortgage servicer. Trustee involvement has already led to a $75,000 sanction against the mortgage servicer’s law firm for making inaccurate representations to the court.

Source: Bankruptcy Trustees Taking Action Against Dishonest Lenders.