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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Hillary will consider legislation that offers protection to mortgage servicers and others who work with borrowers to modify their mortgages. Servicers and others who administer the mortgages can save families' homes, save investors from losses down the road, and help the economy. However, many servicers are concerned about opening themselves to lawsuits from the investors who actually own the loans. Hillary is prepared to consider giving legal protection to servicers and others who administer mortgages when they do the right thing by balancing the interests of the homeowners, the investors, and our economy.

The post itself was made by former New Hampshire Democratic Party Chair and current NH Clinton campaign co-chair Kathy Sullivan. I'll just lose my mind if I try to address this right now....Thanks...
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4 justice now

Welcome to the latest third world country... The USA.

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Mike, you can stop...
banging your head against the wall quite so hard ... As it turns out, someone might have actually been listening. Just a few excerpts and the link for the whole thing is at the bottom of this post.

Edwards Unveils Bold New Proposals To Restore The American Dream Of Homeownership

  • Fight appraisal and servicing fraud: Abuses have appeared at nearly every point in the mortgage process, from the appraisal that sets the loan value to the servicing that collects the payments. Up to half of all real estate appraisers have reported pressure to overstate property values, causing families to owe more than their homes are actually worth. Servicing fraud includes failing to apply payments, treating current accounts as defaulting or assessing unjustifiable fees or forced insurance. Edwards will establish new rules and enforcement powers to combat these frauds. [Demos, 2005]

  • Ban other abuses: Edwards will also ban other practices characteristic of abusive loans, such as loan flipping, mandatory arbitration clauses, balloon loans, and other excessive fees. The ban will create a duty of fair dealing for all loan originators, including non-bank finance companies, and strengthen underwriting standards to ensure that borrowers receive affordable loans suited to their means.
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Way To Go


As a side note:


Knowing what was coming today, CNBC did a pole yesterday.  I can’t remember the exact wording of the questions, but you’ll get the idea:


A-  Do you think the market should be allowed to resolve the current mortgage crises?


B-  Should the government step in and dictate what the industry should do?


C-  I am not sure.


76% of the visitors to CNBC chose “A”.  Then the market goes up 174 points today following the big announcement.  Go figure.  


Ms. Clinton is simply using this as a political opportunity.  Nothing she, or her husband, have done in the past support her current position.  


If the liability protection is strictly limited to investor liability against the servicer, then I’d say maybe.  However, I suspect there will be some form of indemnification that borrowers will need to give to the servicers.  In other words – Sure we will freeze your rate, but forget about suing us for anything for the rest of your natural life.


I hope I am wrong.

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A-  Do you think the market should be allowed to resolve the current mortgage crises?

NFW is the market capable of resolving this, nor does it want to while reaping bazillions shorting the mortgage market and feeding growing default servicing industry because Wall Street investment banks know defaults are being manufactured by their servicers, rigging the bets in their favor.  Their off balance sheets need to see daylight in order to tell the real story here. 


B-  Should the government step in and dictate what the industry should do? NFW while Wall Street lobbyists control Washington.  Washington is going to do everything it can to protect "the industry".  There's lately been a lot of supoena flinging but has there been any real action?  Seen any perp walks on the street lately?


C-  I am not sure.  I am sure, very sure.


Ms. Clinton is simply using this as a political opportunity.  Nothing she, or her husband, have done in the past support her current position.  Ms. Clinton will use any self serving opportunity she can latch onto to further the Clinton power grab.


If the liability protection is strictly limited to investor liability against the servicer, then I’d say maybe.  However, I suspect there will be some form of indemnification that borrowers will need to give to the servicers.  In other words – Sure we will freeze your rate, but forget about suing us for anything for the rest of your natural life.  Anyone seduced by this lipstick on the donkey will need to scrutinize the small print very carefully.


I hope I am wrong. Way to Go, You are not wrong to beware of Washingtonians bearing purported solutions  because that's ALL IT IS, some lip service long suffering homeowners are wanting to hear, save a few while millions continue to suffer.  In the long run it is no better than putting a band-aid on a severed artery.   

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Ed Cage
     Mike quoted:
"Hillary is prepared to consider giving legal protection to servicers and others who administer mortgages when they do the right thing by balancing the interests of the homeowners, the investors, and our economy."

Mike I can certainly see why you said you felt you "would lose your mind if you tried to address it right now.."  Some things are more important than money to me.. This is one of them.. These criminals need to be brought to justice. 
A reward for doing the right thing??!?
There are millions of affected homeowners who did the "right thing" and got robbed in broad daylight by these shameless mortgage fraud criminals like Citi (James Brantley), Bear Stearns, EMC and AMC (James Brantley again).

On a lighter note I sent this hilarious email of a bumper sticker to one of the frequent posters in here today.. It may lower your blood pressure Mike and keep me from reaching for the barf bag: 

            Best bumper sticker of '07 and '08

   Bumper sticker spotted on a Silverado pickup truck on

          Loop 610 in Houston, Texas, on Oct 30, 2007


Mr Ed 
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Money money money trips up Edwards’ message

Filed under: 2008 Primary, Finances, Hedge Funds, Image, Law Career, Real Estate, Taxes — is @ 1:02 pm


    Since his stint as the Democrats’ vice presidential candidate in 2004, the tension between Edwards’ private life and his politics has been growing. In recent years, Edwards, 54, has adopted a more populist tone at the same time he’s taken on more of the accoutrements of wealth.


    That tension may be one reason that Edwards has struggled against Sens. Hillary Clinton of New York and Barack Obama of Illinois.


    “I think it does hurt him, because it calls into question his sincerity,” said former South Carolina Democratic Party Chairman Dick Hartpootlian, who backs Obama. “If you base your campaign on where you come from, the haircut, the corporate portfolio, all that is inconsistent with that.”




    As a lawyer, Edwards went for the big payoffs, making millions suing doctors, hospitals and corporations and building a net worth he’s reported at about $30 million. Edwards wasn’t an anti-poverty lawyer, and he did little pro bono work. He didn’t emphasize fighting poverty when he ran as a moderate in 1998, defeating Republican Sen. Lauch Faircloth, or during his six years in the Senate.




    But since his Senate election, he’s traded up to progressively tonier residences: a $3.8 million house near Embassy Row in Washington, a $5.2 million house in Georgetown and finally a $6 million house, which includes a full-size indoor basketball court, built in 2005 outside Chapel Hill.


    Edwards also took a part-time consulting job with Fortress Investment Group of New York in October 2005. Fortress raises money from wealthy individuals and institutions, pools the cash in private equity or hedge funds and invests it in alternative ways - buying public companies and taking them private, for instance - to beat usual market returns.


    With $43 billion under management, including $16 million of Edwards’ personal fortune, Fortress is among the major firms in its class. While Fortress was incorporated in Delaware, its hedge funds were incorporated in the Cayman Islands, allowing partners and investors to avoid or defer paying taxes. That’s a practice that Edwards frequently has criticized.




     Edwards has said he joined Fortress to gain some business experience. The firm paid him $479,512 last year for his advice, according to his disclosure form. Fortress executives are his biggest source of campaign cash from any company or law firm, giving him $190,150.


    Two of the firm’s holdings have proved particularly troublesome for Edwards: Nationstar Mortgage of Dallas and Green Tree Servicing of St. Paul, Minn., both sub-prime lenders. The Wall Street Journal in August disclosed links among Edwards, Fortress and the two sub-prime lenders, which had sought to foreclose on victims of Hurricane Katrina in New Orleans. Edwards launched his campaign in New Orleans’ Ninth Ward, linking the post-Katrina problems to his drive to lift people out of poverty.


    Edwards instructed officials at Fortress to redirect his investments away from sub-prime lenders, an effort to repair damage from the story. He also pledged a donation to aid those in Louisiana who were at risk of losing their homes.


    He committed $100,000 in seed money - an undisclosed amount of it from his own pocket - to a fund that ACORN Housing set up to assist homeowners who are trying to work out payment plans with lenders.


    As he tromps through Iowa farmyards in blue jeans, Edwards often talks about his mill-town roots and his days of fighting corporations in the courtroom. But he rarely mentions the so-called three H’s: haircuts, houses and hedge funds.


Kansas City Star 11/22/07

This is a bunch of bull by Edwards it gives retroactive immunity to the criminals who committed crimes and possibly himself. 

Who does he think he's kidding it's always been illegal to extort fees and steal homes by fabricating late payments. He's got rich helping the crooks steal our homes and now he wants to be President? Nice of him to pass legislation to help himself and stab us in the back.

This makes as much sense as making illegal immigration illegal.

JAIL, JAIL, and more JAIL for the perpetrators and accomplices are the 3 things legislators and politicians need to focus on which means a large percentage of the politicians need to turn themselves in.

Hillary's record speaks for itself there is reason why the criminals involved in sub-prime correlate to her largest donors list. She needs to go to jail for her involvement in the sub-prime crises she has no business even bringing the subject up the Clinton's repealed the Glass-Steagal act and permitted the entire nations economy to get flushed down the toilet in exchange not only for political donations from these crooks but because her and Bill are millionaire lawyers from lending fraud. Many of her partners and fiends were heavily involved in lending and real estate fraud themselves. The people who had their homes stolen should get them back period, how on earth would that help the economy to give legal protection to
the servicers. 

These crooks looted the country and they stole so much they have jeopardized the security and well being of the country to the point of treason.

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Like all politicians with higher office in mind, when confronted with the reality of bankruptcies as presented by Professor Elizabeth Warren, Hillary was more than happy to "consider" anything until the special interest lobby came to call. Suddenly, concern drifted into playing dumb.

Our answer to this isn't going to come from Politicians in Washington.  Political parties are simply pawns to the entities who can manipulate them with money and influence.

Only we can kill predatory mortgage servicing, but it will require people willing to tell mortgage lenders to stick it when they offer loans that can wind up in the hands of the Littons, EMC's, Ocwens, etc.

If your lender/broker can't put in writing that the loan will not be serviced by EMC, HomeEQ, Litton, Ocwen or SPS, tell them you're not interested. Don't be afraid to walk out with that message after they've invested some time trying to lure you in. If a few hundred thousand people had said that over the last couple of years, most of those companies would be out of business today. Without the garbage disposal servicers, the loans couldn't have made it into the conduits.

Sadly, we have to face up to the fact that in today's free-market environment, only the market has the power to shape the industry's behavior. Washington does not have the will and the dog and pony shows going on are nothing more than campaign season fluff.

When we learn to adjust our desire for that dream of home ownership to a level the lure of predatory loans can't overcome, the industry will shrink and predatory mortgage servicing will die with it.

Call it a boycott if you want, but if consumers stop signing up for subprime (scam) loans, the perpetrators of this entire house of cards will have to find something else to do, and most of them really don't know how to make an honest living.


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I only said...
Mike could stop banging his head against the wall quite so hard ... I didn't say he could stop altogether.

The one point I can make solidly is now that at least 2 of the candidates are talking about mortgage servicers and one of them is talking about servicing fraud,  maybe it will elevate the national conversation to some degree. There really hasn't been a national conversation aside from what goes on here on the net, it got hijacked before it could begin by predatory lending.

Small pebbles tend to come before an avalanche ... as for me, even the smallest of pebbles help keep my hope alive.

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Ed Cage
Another good post (#7) Greg!
Mr Ed
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That's why we all need to keep talking about these companies. I never knew anything about this until it happened to me. Or at least not to the extent that it is happening. I was like a lot of other people when it came to this type of fraud. I really never thought that it was this wide spread. I am not saying that I didn't know something was wrong, but I never knew exactly what was going on until I came across this website while trying to find out more about my servicer which is HomEq. This site is great for those of us that research and find it, but we need more ways of getting the message to the general public. We need more resourses to get it out in the media so that others that may not realize what exactly is going on may be affecting them and their families as well. I tell everyone I know about this site. I also tell everyone about my nightmare with HomEq. Some say they believe me while others are more reluctant to do so. Some think that we must be at fault somehow. It's very stressful. We all know how we have been decieved. Yet getting others to believe us can sometimes be very discourageing. Many of these people may be getting charged bogus fees themselves and never think nothing about it. They just pay them. If there was some way to make this problem more public and available to the everyday Joe. Maybe more people would start looking more closely at their mortgages and realize that something just isn't quite right. I am going to go to my local grocery store and put some of the flyers from this site up on the bulliten board. I know it's just a small thing to do but we have to start somewhere.

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Find out who has bought whom by using this interactive tool:

Consider this:

                                Wall Street leads surge in corporate political giving                                


By Kevin DrawbaughTue Nov 27, 4:34 PM ET


Big business is shoveling more money than ever into U.S. political campaigns, with Wall Street donations way up, a watchdog group said on Tuesday.

The securities and investment industry -- which includes brokerages, hedge funds and private equity firms -- registered the sharpest increase in giving since 2004 among all industry sectors studied by the Center for Responsive Politics.

Record-breaking contributions from the nation's biggest political givers are the result of a wide-open race for the White House and last year's power shift in Congress, said Sheila Krumholz, the nonpartisan center's executive director.

"There is an intensity to the fund raising for 2008 that we've never seen before, which means the candidates and parties will be all the more beholden" to big donors, she said.

The nonprofit center analyzes campaign finance and lobbying records at the Federal Election Commission (FEC), a government agency that enforces U.S. campaign finance law.

The analysis includes contributions to federal candidates and parties from individuals working in an industry and from associated political action committees.

In both presidential and congressional contests, Democrats are benefiting more than Republicans from the surge in business donations, with 57 percent of giving from typical big donors going to Democrats versus 43 percent in 2006 and 2004.

More money is coming in from lawyers than from any other sector, as usual. But the biggest increase in giving since 2004 is coming from financiers, whose donations are up 91 percent.

Steep increases are also coming from the real estate industry, Hollywood, healthcare professionals and insurers.

Industries with small increases, and even some decreases, tend to be past Republican allies, said the center's analysis.

Automakers have been staunch Republican supporters since 1990, but in this campaign cycle their giving is down 20 percent. Declines are also evident among grocers, food processors and telephone companies, the center said.

Only small increases are being seen among Republican backers such as builders and defense and aerospace firms. The oil and gas industry's contributions are up 15 percent, "well below the average for big industries," the center said.

"Democratic donors seem unusually mobilized for this election. But those industries who've traditionally given to Republicans seem to be either nursing their wounds from '06 or sitting this election out," Krumholz said.

Wall Street's favorite presidential candidate, based on the latest FEC disclosures from October 29, was Democratic New York Sen. Hillary Clinton. Close behind her in donations from financiers were Republican former New York Mayor Rudolph Giuliani and Democratic Illinois Sen. Barack Obama.

Next were Republican former Massachusetts Gov. Mitt Romney, Democratic Sen. Christopher Dodd of Connecticut, Republican Sen. John McCain from Arizona, Democratic former North Carolina Sen. John Edwards and Democratic New Mexico Gov. Bill Richardson.

The biggest donors in the securities and investment sector, as of October 29, were the brokerage firms Goldman Sachs, Morgan Stanley, UBS, Merrill Lynch, Lehman Brothers and Credit Suisse.

Also among the sector's top contributors were hedge funds and private equity firms Bain Capital, SAC Capital Advisers, Fortress Investment Group and Blackstone Group.

"There's no question that hedge funds and private equity firms have ramped up their political giving in the last couple of years as Congress looks seriously at raising their taxes," said Massie Ritsch, spokesman for the Center for Responsive Politics.

Lawmakers are considering proposals to more than double the tax rate on the "carried interest" gains of senior partners at private equity firms that buy and sell businesses.

(Reporting by Kevin Drawbaugh; Editing by Tim Dobbyn)


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