Mortgage Servicing and Loan Modifications: 10.2.2 Industry Standards and the Duty to Maximize Investor Returns
Industry standards generally provide the guiding principles for determining whether or not a particular industry practice is valid, even when a law has not specifically banned or authorized the practice.16 The failure of a servicer to comply with industry standards may establish a defense to foreclosure, including when that servicer has failed to properly engage in loan modification analysis prior to initiating foreclosure proceedings.17