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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Digger
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Digger
I wonder if their plea to the court is:
"we request the court permit us to shred our documents because everybody else is shredding their evidence, um, we mean documents".
 
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Blossom

American Home's Intention
To Destroy Files Raises Ire

By PEG BRICKLEY
January 4, 2008; Page C2

American Home Mortgage Investment Corp.'s plan to destroy 490,000 hard-copy mortgage files has drawn fire from federal bankruptcy monitors, who say it could hurt homeowners' ability to sue the failed lender.

The company, once one of the country's largest mortgage lenders, says it can no longer afford the $45,000-per-month rental on warehouse space to preserve paper files. Its bid for court permission to destroy the files has been criticized by Kelly Beaudin Stapleton, the U.S. Trustee monitoring the case.

Destruction of the paper files could create trouble for American Home borrowers, compromising their ability to file lawsuits against the Melville, N.Y., company, Ms. Stapleton said in papers filed with the U.S. Bankruptcy Court in Wilmington, Del. American Home, which collapsed into bankruptcy in August, is selling its assets and going out of business.

"Homeowners may have claims against [American Home] and/or third parties stemming from the origination of their mortgage loans," Ms. Stapleton said in court papers filed last week. "These homeowners may need access to the original copy of the loan file to prove their claim."

John Kalas, American Home's deputy general counsel and chief compliance officer, said yesterday that the planned destruction wouldn't affect homeowners because the paper copies are "duplicates."

"The only loan files that we are destroying or seeking to destroy have been fully imaged," Mr. Kalas said. "Anything related to consumer concerns or loan fraud or anything like that, the information would be available on American Home servers."

Investors who own the loans also have protested the plan to destroy the paper files, complaining in court papers that they have had trouble getting full documentation from American Home.

Bank of America, a unit of Bank of America Corp., objected both in its role as an owner of some of the mortgages and in its role as the lead agent for American Home's bank syndicate. Destroying original documents could diminish the market value of the mortgages, it said.

Wells Fargo Bank, and arm of Wells Fargo & Co., also complained, warning that destruction of the paper files could make it tough to foreclose on borrowers.

A hearing on the document destruction was pushed off from today until Jan. 14 so American Home can attempt to resolve objections, according to a court document.

Write to Peg Brickley at peg.brickley@dowjones.com

 

http://online.wsj.com/article/SB119941290597566781.html?mod=googlenews_wsj

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"The only loan files that we are destroying or seeking to destroy have been fully imaged," Mr. Kalas said. "Anything related to consumer concerns or loan fraud or anything like that, the information would be available on American Home servers."

Sure. We keep our evidence of fraud around here just in case.
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But they've been "imaged" probably meaning transferred to digital format. The only problem with this is that without the original document there is no way to confirm that the "imaged" doc has not been somehow altered.

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Oh, I just noticed whose story this was. Ms. Brickley is very knowledgeable and up to date on MSF issues.

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Destroying and not keeping paper records is a very dangerous precedent and so is electronic voting. Computer data is far to easy to manipulate and there is no way to verify it except to blindly trust those in charge of the data we all know how accurate it is, not at all.

Even after we have suffered the indignity of unlawful foreclosure or at least the threat of it our computer records make us look like losers.

Getting new loans, apartments, jobs etc. we have a manufactured bad reputation in order to justify stealing from us that follows us around forever thanks to fraudulent data entries.

Under the new terrorism laws just a few keystrokes can transform an honest law abiding citizen into a terrorist. Perhaps you just inherited your parents or grandparents home and it makes someone in the government or financial services sector jealous. One data entry and presto chango your an enemy of the state and it's "lawful" to seize your property.

If anyone thinks that is an exaggeration remember we have had our homes stolen or at least run though the legal ringer by false data entries.

The computer is a wonderful tool for facilitating transactions but it's crazy to literally trust your whole life and the fate of the nation to a handful of keystrokes and/or scanned docs, signatures etc, next we can expect to see biometrics retinal scans and face recognition and other id methods but we still need to blindly trust those in charge of the data.

We need signed in ink notes and deeds recorded by physical people and stored in a safe place.

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Digger
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Wells Fargo Bank, and arm of Wells Fargo & Co., also complained, warning that
destruction of the paper files could make it tough to foreclose on borrowers.
 
 
Someday...
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