Tension is evident in the mortgage servicing industry as federal regulators along with state lawmakers and consumer protection groups are coming after servicers, according to speakers on the legislative roundup panel at the SourceMedia Mortgage Servicing Conference in Dallas.

"The rules are all being changed," said David Bizar, a partner with McCarter & English. The attorneys general of New York and Connecticut are enforcing federal law and claiming suitability violations under the Truth In Lending Act, he said.

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