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.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
arkygirl

When a homeowner is delinquent on a mortgage that's been securitized, the servicer must front the late payment to the investors. When a home is foreclosed, the servicer is typically first in line to recoup losses. But if a mortgage is modified, the servicer typically loses money that isn't necessarily recoverable.

"Servicers lose no money from foreclosures because they recover all of their expenses when a loan is foreclosed, before any of the investors get paid. The rules for recovery of expenses in a modification are much less clear and somewhat less generous," she said.

The whole National Consumer Law Center report is here:

Why Servicers Foreclose When They Should Modify and Other Puzzles of Servicer Behavior

Quote 0 0
Hmmm...

If the pool is insured....

What incentive does the servicer really have in a loan mod??????

Quote 0 0
.
Under the new program, the Feds give them money as an incentive. So they not only get paid to do it, they get to rake in extra fees in the default and still have another opportunity to foreclose later.
Quote 0 0
4 Justice Now
.:

Oh yes, that makes complete sense... reward the thieves (servicers) with the victim's (the tax payers) money.

NASA: Forget about Mars, etc. is there really intelligent life of Earth?

Quote 0 0
arkygirl
LOL, 4J. There is intelligent life on earth...otherwise we could not literally "shoot the moon"!

Perhaps the more appropriate question might be "Is there really intelligent life in government?" THAT is the burning question.

Quote 0 0
4 Justice Now
Arkygirl:

You're right!

And while there may be intelligence, there's certainly no honor, ethics, morality, social responsibility, loyalty or respect for this nation and/or its citizens.

Otherwise, this blatant fraud would have never been allowed to happen... regardless who was on the watch. They have all failed so miserably and continue to due so. Especially, our bought and paid for politicians. May they all get stuffed.

V/r,

4J
Quote 0 0
Write a reply...