Massachusetts AG Settles with Mortgage Servicer over “Zombie” Mortgages
Massachusetts AG Andrea Campbell settled with Franklin Credit Management Corporation (Franklin Credit), to resolve allegations that the mortgage servicer violated the commonwealth’s foreclosure-prevention law and debt collection regulations. According to the settlement, Franklin Credit, in servicing “zombie” second-lien mortgages—mortgages which became unsecured debt subject to collection following foreclosure of a first-lien mortgage—allegedly failed to timely communicate…