Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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can't help them
Does anyone know what the diff. is between ACTUARIAL INTEREST and lets say 'normal' interest?
Please share knowledge in laymans terms.
don't get it.

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There are a variety of definitions of this term, but you really need to seek a definition WITHIN THE CONTEXT in which the term is USED.  I do NOT have a copy of Black's Law Dictionary.  I would encourage you to CALL or e-mail a reference librarian at a public library to ascertain the text definition (IF there is one).

Bear in mind that terms such as this may have a STATUTORY definition within a particular jurisdiction and that statutory definition might even apply ONLY to a particular statute or chapter within a statute.  And the statutory definition may therefore VARY as to usage WITHIN a jurisdiction and ACROSS jurisdictions.

One definition I quickly found online appeared within 26 C.F.R. 1.52-2:

"(f) Actuarial interest. For purposes of this section, the actuarial interest of each beneficiary of a trust or estate shall be determined by assuming the maximum exercise of discretion by the fiduciary in favor of the beneficiary.  The factors and method prescribed in § 20.2031–7 or, for certain prior periods, 20.2031–7A of this chapter (Estate Tax Regulations) for use in ascertaining the value of an interest in property for estate tax purposes will be used to determine a beneficiary’s actuarial interest."

See: http://a257.g.akamaitech.net/7/257/2422/12feb20041500/edocket.access.gpo.gov/cfr_2004/aprqtr/pdf/26cfr1.52-2.pdf

This is rather a starkly DIFFERENT meaning than I would have tended to ascribe based upon my LAY understanding of the usage of the term!  I would have thought of the term as generally describing a rate of interest that would be actuarially correct in consideration of all cash flows as in an implicit rate of return.

I believe you need to START with jurisdiction and CONTEXT.  Check Black's Law dictionary AND then Lexis-Nexis and WestLaw for cases employing the term within YOUR jurisdiction.  But bear in mind that both Lexis-Nexis and WestLaw are EXPENSIVE so ideally you want to do this at a law library or other academic library where access to Lexis-Nexis is FREE.

If you advise us of the jurisdiction, I can probably run a quick Lexis-Nexis search for CITATIONS, but you are still going to need to look up the underlying statute or cases yourself.  Also, even WITH what appears to be a definition in hand, you would be very well counseled to also ASK A LAWYER to VERIFY that your understanding of the term and context are CORRECT for YOUR situation.  You certainly SHOULD do that if the validity of the answer is critically important to you!

Bear in mind though, that there ARE many instances where there is NO applicable statutory definition and no really god case law for a jurisdiction as to what particular terms mean.  An ultimately, the terms mean what a court SAYS they mean.  When dealing with ambiguous terms PROSPECTIVELY you should endeavor to obtain a written clarification as to ambiguous terms.  That migth include defining terms within contracts.  Or it might mean obtaining written representations as to the common understanding of the meaning of terms, though this is inherently more dangerous because most contracts will have some boilerplate language indicating that the contract is the ENTIRE agreement and that it supercedes any other written or oral communications concerning or regarding the contract.  Still you are BETTER OF having a written representation about what you understood various terms to MEAN.

For contracts already written for which the definition later emerges as important, you should carefully make notes of various alternative definitions and the supporting authority.  On the brighter side, I have found that in low dollar litigation, opposing counsel have been habitually time constrained and LAZY.  While they MIGHT show up with a solid case that shows what the term means, you might very well discover that if you are WELL PREPARED that you have the ONLY references within the Courtroom.  The Judge probably wont accede to a really flakey or peculiar meaning, but if you showed up with several apparently authoritative references and the opposition has NONE, then the term may mean what your well prepared bried SAYS it means!

Hope that helps!

IF the context involves computation of interest, I would encourage you to compare alternative definitions of "simple interest", "compound interest" and "internal rate of return".  Check good college accounting or finance textbooks. 

IF the context implies shared ownership, I would look elsewhere.  
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What IF?
If I didn't make a mortgage payment for more then 3 years while fighting fraud, what can be done. How long can a servicer avoid forclosure? And What can be done if you can't afford an attorney?

The Servicers knows there is fruad involved, that's why they will not forclose. What can or should I do? TY


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Tht depends upon jurisdiction and so many OTHER facts in the case!  Generally, non-payment is NOT a viable strategy and NOT something I would ENCOURAGE or recommend to anyone!

Why don't you e-mail me.
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Moose
"Actuarial" interest loans are another way of referring to a type of Adjustable Rate loan where the monthly payment amount doesn't increase but the amounts paid to principle vs. interest change as the interest rate rises.  These can also result in negative amortization situations where the fixed amount payment isn't sufficient to reduce the principle at all.

Very dangerous, IMHO.

Moose


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Moose

What IF? wrote:
If I didn't make a mortgage payment for more then 3 years while fighting fraud, what can be done. How long can a servicer avoid forclosure? And What can be done if you can't afford an attorney?

The Servicers knows there is fruad involved, that's why they will not forclose. What can or should I do? TY


This isn't legal advice, and that is indeed what you need.

But, the ultimate decsion you're going to have to make is do you want to continue living in the house, AND, can you afford it?  Is it worth what you owe on it?  How quickly would it sell?  How much do they know about your financial situation?  What state you're in will also have an affect on their timeline.

Something you might not be aware of is the statute of limitations that may be running since you discovered the alleged fraud. Only a qualified attorney can look at your specific case and determine whether or not you've exceeded the time allowed.  Depending on the originator, there may very well be a class action case already going that you can join at little or no up-front expense on your part.

Also, it is unusual that a servicer wouldn't dump a fraudulent loan that as far into the weeds as your's. Normally they'd sell it as quickly as they could into one of the toxic waste dump servicers, like EMC. It is also possible that the trustee might force the originator to take it back along with other similar loans.  That depends on the Pooling and Servicing Agreement between the trustee and the servicer and the insurer (if there was credit enhancement).

In any event, they aren't looking out for your best interests, only their own.  I would suggest you at least develop an escape plan and stay in control of the situation rather than having them hold a sword over your head.

And if you haven't made a house payment in three years, surely a few hundred dollars should be available to at least get an attorney to spend a couple of hours with you.

Moose

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can't help them
Moose wrote:
"Actuarial" interest loans are another way of referring to a type of Adjustable Rate loan where the monthly payment amount doesn't increase but the amounts paid to principle vs. interest change as the interest rate rises.  These can also result in negative amortization situations where the fixed amount payment isn't sufficient to reduce the principle at all.

Very dangerous, IMHO.

MOOOOSE, NOOOO!
We cannot afford this 
# 1. Our loan documents do not state "ACTUARIAL INTEREST! as a method of mathematical equations.
2. Our loan is a fixed rate.
3. Our loan is the "standard loan" NO balloon payments, no Arms, no amortization schedule. It is a standard loan, with no clauses for any of these other things.
What can we do to stop this before it gets out of control?
Those are their intentions; I know they are.

Thank you for your help Moose!



Thank you WAR,
I understand from your posts, concerning the "Acturial Interest" that you have come across the same information as I have. I have found contradictory results, some in which say that the "Actuarial Interest" protects that of the financier/SERVICER.  along, with some that say it is to protect the borrowers interest.

So these mathematical equations used, and noted to me in letters from the SERVICER specifically states, their intent to use "ACTUARIAL INTEREST" against my loan, for their profit.

Thank you for the advice, It WILL BE USED!





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Moose

can't help them wrote:

MOOOOSE, NOOOO!
We cannot afford this 
# 1. Our loan documents do not state "ACTUARIAL INTEREST! as a method of mathematical equations.
2. Our loan is a fixed rate.
3. Our loan is the "standard loan" NO balloon payments, no Arms, no amortization schedule. It is a standard loan, with no clauses for any of these other things.
What can we do to stop this before it gets out of control?
Those are their intentions; I know they are.

Thank you for your help Moose!


First, ALL mortgages have an amortization schedule.
Secondly, "actuarial interest" on a fixed-rate loan is like tuna vs. tuna fish. They are the same thing.
And there is really no such thing as "normal" interest.

You can create your own amortization schedule if you have a spreadsheet like Excel, or you can find any number of them around on the 'net.

Moose

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Hi I would suggest calling HUD.  They looked up my information over the phone and referred us to another dept. in HUD that handles conventional mortgages and they have attorneys *legal aide* who may be able to help.  Use the money you would be making on the house payment for additional council or be placing this money aside to bring your loan current if you are given the opportunity to renegotiate the loan or when yu have your day in court. Good luck
julie

"Just one voice is a whisper. Yet, a multitude of voices can be heard around the nation."


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Julie thanks for the suggestion but we are not getting our day in court. My lawyer told my I could not go to court because it would only make the judge angry to see the borrower there. We are not getting a fair trail and judges openly dismiss hard evidence such as canceled checks, missing notes, forged documents and false title claims.

Constitutionally were are guaranteed a jury trail but fat chance of actually getting one.

I have had a judge steal my evidence and was then arrested just going to the country and asking for my evidence back.

I have had the police tell me to leave the state and not come back even though I have broken no laws and have been held in jail for ten days under a false name and no outside contact.

I have had a judge physically destroy my evidence in front of the whole courtroom
and defy anyone to report him after he had overruled the defenses expert witness which verified my story. I was a pro-se plaintiff.

These people are stealing our homes and the judges are denying us due process or even worse facilitating fraud on the side of the lender or servicer.

Millions of people have been stripped of property rights and due process.

What we are talking about is government sponsored racketeering.

You are right about us raising our voices in unison but that must include citizens demanding everyone has equal rights and protection under the law.

This country seems to be so polarized that if it has nothing to do with their pet cause they could care less.

The people are mad at the government but it seems not as matter of right and wrong and the rule of law but as a matter not serving their or their groups needs.

People talk about stealing from social security or not funding school children or or the war taking money that could have been used for education or housing but they do not seem to care about the overall concept of stealing or the rule of law because they have there own pet cause they would like to be able to bend the rules to fund or get away with.

It's not that every person is jerk but they don't seem to grasp the concept of common set of rules we can all live by due to special interests. Guess what Abraham
Lincoln Predicted this would all happen over one hundred years ago.

He predicted the people would be to divided over special interests to notice the Corporations had taken over the government.

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Sorry I inadvertently diverted the thread.

Most people just do not get what is going on here and if it took a while for us it may take them a while as well. None of us probably has the full story of the money trail.

I would suggest everyone  get a forensic accounting if at all possible.

It is important to figure out if the payments have been correctly calculated.

Who knows we may bring down this whole scam because some government agency is a stickler about some accounting aspect.

Gary has said many times that this fraud is as likely to be exposed due to insurance or tax fraud it just as well may be interest rate calculations.

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"My lawyer told my I could not go to court because it would only make the judge angry to see the borrower there. We are not getting a fair trail and judges openly dismiss hard evidence such as canceled checks, missing notes, forged documents and false title claims."


I can think of a NUMBER of reasons why NOT appearing might actually be VERY GOOD COUNSEL.  This would particularly be the case where you had any basis to DENY the validity of the signatures on the promissory note and/or deed of trust or otherwise where the plaintiff's proof in a judicial foreclosure was DEFICIENT.

YOUR PRESENCE in the court room in such circumstances might incline the Judge to QUESTION YOU SUA SPONTE or the opposing lawyer could ask you under oath about various matters.  The lawyer can argue on your behalf without beign sworn or put under oath.

On the other hand, it is very unusual when your attorney has as intimate a familiarity with the FACTS of a case as the client.  But the attorney usually is better acquainted with the law and local practice, including practice before a particular judge.

I am very distressed at what you report as to the disposition of your case and the circumstances attendant to it.  I KNOW that I would WANT to be present at hearing or trial.  But I think that we should also recognize that there might be circumstances where this migth NOT be desirable. 
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can't help them
julie wrote:
Hi I would suggest calling HUD.  They looked up my information over the phone and referred us to another dept. in HUD that handles conventional mortgages and they have attorneys *legal aide* who may be able to help.  Use the money you would be making on the house payment for additional council or be placing this money aside to bring your loan current if you are given the opportunity to renegotiate the loan or when yu have your day in court. Good luck
julie

"Just one voice is a whisper. Yet, a multitude of voices can be heard around the nation."




Thank You,
and I will add HUD as a list of things to do, thanks for the advice Julie

But the problem is that I am not late on any of the payments. NOT LATE! PERIOD! USUALLY, 3-5 days early on our payment!
So how can they use Actuarial Interest against our loan then?
I don't understand.

Is there anyone who can give me "WORDS TO SAY"
in a letter to them?

I know I need to write them a letter about this but I don't know "WHAT" to write, because I don't understand how they are able to do this to me.
Any one have any suggestions?
It's needed
Thank You
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.

can't help them wrote:

Thank You,
and I will add HUD as a list of things to do, thanks for the advice Julie

But the problem is that I am not late on any of the payments. NOT LATE! PERIOD! USUALLY, 3-5 days early on our payment!
So how can they use Actuarial Interest against our loan then?
I don't understand.


I think Moose pointed out that "actuarial interest" on a fixed rate loan is the same as ordinary interest.
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Moose
THIS ISN'T LEGAL ADVICE.
Your mileage may vary.
Sample QWR letter - guessing at the issues you're facing:



 

Date

 

Servicer

Address (not a PO box)

 

ATTN:  Customer Service

 

Re:      Loan #, your name, property address

        

Subject:  RESPA Qualified Written Request

 

I have reviewed my most recent statement and compared it to my own payment records and have found several discrepancies:

 

Explain in short statements ONE issue at a time and ask for specific individual responses below it.  For examples:

 

The statement dated _________ indicates the account is in default.  This is an error on your part.  We have records showing payments were submitted in a timely manner. Please provide an itemization of the following information for the account:

 

1 - Payments received, showing date receieved, what amounts were applied to principle and interest and the dates they were applied for the last 12 months. Please highlight any payments that you allege were late.

 

2 - Any amounts applied to items other than principle and interest, and a definition of those items and the dates any amounts were applied, if any.

 

 

And/or:

 

Your intererpretation of the method of calculating interest on this account appears to be different than the method as defined in our loan documents.  Please provide the following:

 

1 - A definition of your method of calculating interest on this account, including an itemization of those interest calculations on this loan for the past 12 months.

 

2 - Any documents, agreements or allonges, if any, that would permit interest to be calculated and charged in any method other than what is shown on the original loan documents.  If no such items exist, please indicate that as well.

 

 

 

If you uncover any discrepancies during this analysis, please make the appropriate corrections to the account and report those in your response to this QWR letter.

 

I understand that under RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.

 

Regards,

 

 
 
What you're seeking is a letter that demands SPECIFIC explanations. Don't wander off into your interpetations, explanations or assumptions. Keep it as simple as possible so they don't have any wiggle room. You may need more than one letter if you have several issues. Make sure you send them Certified, Return Receipt mail.

Good luck!
 
Moose


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