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ARTICLE · 07 MARCH 2017

Claims Against Navient Echo Problems With Subprime Mortgage Loan Servicers

Davis+Gilbert LLP
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Just as industry-wide litigation and investigations targeting subprime mortgage servicers began with lawsuits against the industry's largest players...

United StatesConsumer Protection
Joseph Cioffi
Joseph Cioffi
Massimo Giugliano
Massimo Giugliano
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Just as industry-wide litigation and investigations targeting subprime mortgage servicers began with lawsuits against the industry's largest players, the lawsuit filed recently by the Consumer Financial Protection Bureau (CFPB) against Navient Corporation, the nation's largest student loan servicer, may serve as a springboard for lawsuits against student loan servicers. In addition to providing a glimpse into potential trends in the industry, subprime mortgage litigation could provide a roadmap for student loan borrowers seeking to recover damages for potential servicer misconduct.

The Navient Suit

As discussed in more detail in our Alert, " Recent Actions Against Navient May Expose Problems Contributing to the Student Loan Debt Crisis," the CFPB alleges that Navient broadly (1) steered struggling borrowers toward paying more than necessary on their loans, (2) obscured information needed by borrowers to maintain lower payments, (3) deceived borrowers regarding

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