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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Received a letter that my ARM is adjusting LOWER beginning FEB 2010. Anyone else seeing this? Haven't had time to contact servicer, but first impression is this seems strange because it is going considerably going lower.
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Rates are tied to various indexes such as "LIBOR" or "Wall Street Prime Rate".

If you know which index your ARM is tied to you can pretty well track changes yourself. My index is disclosed in my mortgage docs; yours should be, too.

The indexes tend to dive along with everything else.

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Thanks Arkygirl for the info. I'll look it up. Just surprising to see something positive happen.  Happy Holidays!!!!
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And you got a wonderful holiday gift...a falling interest rate.

All indexes are falling (except for Wall Street Prime which has remained fairly stable-it never spiked like many other indexes.)

Once you know your index you can track all the rates at
For instance, look at what has happened to LIBOR over the past year, meaning that people's mortgage ARMs tied to LIBOR should be falling:

                                                          This week  Month Ago  Year Ago
1 Year LIBOR rate1.001.092.42

I have wondered if these indexes falling are driving some foreclosures. By law, if your index falls, your rate must fall as well. When indexes were rising, rates were rising. Now the inverse is happening.

But if they can get you into foreclosure or a loan mod I am not sure that the lowered rate adjustment still applies. Something to think about.

You are the first (and only) person I have heard say that the negative adjustment has taken place.

You seem to have an honest servicer....*gasp* did I really say THAT!?? For your own protection keep all these letters and track your own rates just in case they try something later on.

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The Equitable One

I'm not sure that honest is the proper term. If the terms, actions and behaviors are codified in the binding paperwork then I would gravitate more towards the term "compliant."

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Touché! Well said.

Compliance is such a rare bird these days; it so shocked me to hear of it that I almost forgot the thuggery and thievery practiced by so many of the servicers.

As in all industries, there are degrees of compliance in the servicing industry. There are some servicers who do the job correctly most of the time, believe it or not. I come not to praise them here because we do not discuss them here.

We tend to hear only of the grossly NON-compliant at this forum. "Binding paperwork" does not seem to be a term familiar to them, they cannot remember, they cannot find, their excuses are myriad, their practices are reprehensible, their touch is toxic.

I am willing to bet that few people knew about the index + ARM connection...just another way to expose the cheats. If your index falls and your rate doesn't when the reset comes around, you have a toxic servicer. I suppose this could help some folks in some small way. It's just another breach of contract to add to the ever-growing list.

I find it strangely funny...the servicers expected these indexes and interest rates to rise forever until the servicers floated up on piles of profits into the stratosphere to sit at the right hand of The Man. Oh, yeah!

Instead they are now headed in the OTHER direction to sit at someone else's right hand. They always win some, though. They will be getting free heat for eternity. Grr!

SURPRISE! Suck it up, servicers.

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tired and tattered

I had a drop in mine several months ago, but it has not stopped any of their behavior. They are still liars. They may have done one thing legally, but that does not mean they have given up theire harrassment.

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Ours is now back to the same rate as it started at.
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Are you saying that your rate went down and has now come back up? Or did you have a low intro rate that went up and it has now returned to the lower rate?

What is your index? Did your index go down and then back up? Or vice versa?

Is your ARM adjusted yearly or more often? Less often?

I am interested in tracking servicer behavior in regard to these indexes. Are the servicers performing properly? Are they lowering the rates in relation to the indexes? We all know that they were not late on adjusting the rates upward, but are they adjusting downward like they should?

It's in the documents. It's in the contract. Breach can occur. If they breach their own contract it may void it. Just another "gotcha'" for the servicers in a legal arena.

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It started at 8.29 and at two years started going up all the way to over 11 but went back down and is still down to 8.29. Its tied to LIBOR.
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Yes Libor affects foreclosure rates and it's intended to that's why we included it as part of my Illinois interest rate act suit that was preempted.   It has a higher degree of volatility  and therefore payments are more likely to change.

Libor is London interbank offered rate. Our entire system is based on the Bank of England fiat money system despite the fact the Constitution mandates fixed rate, inflation free, gold and/or silver backed hard money.

According to Allen Greenspan the entire Fed/Irs lending fractional reserve system is designed specifically to trap people into socialism by allowing the government to fund programs they could not otherwise afford and then making the banks rich by having the taxpayers make interest payments on government debt. Allen Greenspan further asserts the great depression was caused by the Fed altering exchange rates and other factors of the monetary system in order to fund British socialism though the U.S. The private bankers who run the Fed were afraid they would lose their gravy train of funding European socialism if the common people gained self sufficiency and prosperity so they had to cause free market capitalism to appear to be a failure and government backed social services to be a success in order to create special privileges for the banking and insurance industry and large multinational corporations, steel, oil, arms manufacturing that would face reduced profit margins or go out of business if they were exposed to free market forces.

The government backed lending structure fed this whole boom bust cycle and privided a built in tool to not only launder the money but to have the taxpayers cover the "losses" and inflation to spread the effects over several years or even decades.

So Libor is just one more tool in the arsenal of the banksters to create instability they can cash in on, and create loans designed to or more likely to fail.

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greg collins wrote:
According to Allen Greenspan the entire Fed/Irs lending fractional reserve system is designed specifically to trap people into socialism by allowing the government to fund programs they could not otherwise afford and then making the banks rich by having the taxpayers make interest payments on government debt.

??? Where did you see that?
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The source of the information was an essay written by Sir Allen Greenspan KBE (Knight commander of the British empire) also know as our former chairman of the Federal reserve, titled gold and economic freedom. A good overview in context is presented in the excellent book capitalism the unknown ideal by Ayn Rand.

The point he is making is that fractional reserve money especially fiat fractional reserve money backed by taxation leads to feudalistic and anarchistic government such as socialism, communism and democracy. The system we have incorporates the central Marxist plank of a progressive tax rate punishment for success and reward for failure and a means of creating and unfair advantage for state sponsored businesses and monetary systems. He further illustrates the FED/IRS is a giant ponzi scheme based on the Bank of England that was used to save socialism in England and foist socialism on the U.S.

Allen Greenspan in the essay maintains that freedom is only possible with a gold based monetary system a position I agree with, and is the entire basis of the U.S. Constitution so much so that debasing the currency thought the treasury as the bailout  and the entire economic meltdown did is punishable by the death penalty and is considered the most treasonous and heinous crime possible in the U.S.

Our Constitution mandates a gold and/or silver based monetary system and to guarantee freedom, property rights and fair and equal treatment of all. It certainly says nothing about a tax and monetary system set up to punish productivity and savings and it certainly says nothing about redistributing assets and wealth.

The root cause of msfraud is the ability of the lenders to use our money as theirs and the victims being denied basic due process and property rights, right to a trail by jury etc. The system is backed by the FED/IRS which allows the banksters to use our money as theirs and have their criminal actions backed by use of government armed force and the ability to seize assets though the IRS.

So our representative republic has been stripped from us and replaced with a socialistic democracy through the progressive tax rate mandated by the FED/IRS and now with the bailout we see the final stage being implemented with an effective  banking dictatorship.
Heres article 1 of the Constitution


No tax or duty shall be laid on articles exported from any state.


No preference shall be given by any regulation of commerce or revenue to the ports of one state over those of another: nor shall vessels bound to, or from, one state, be obliged to enter, clear or pay duties in another.


No money shall be drawn from the treasury, but in consequence of appropriations made by law; and a regular statement and account of receipts and expenditures of all public money shall be published from time to time.


No title of nobility shall be granted by the United States: and no person holding any office of profit or trust under them, shall, without the consent of the Congress, accept of any present, emolument, office, or title, of any kind whatever, from any king, prince, or foreign state.


Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.


No state shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing it's inspection laws: and the net produce of all duties and imposts, laid by any state on imports or exports, shall be for the use of the treasury of the United States; and all such laws shall be subject to the revision and control of the Congress.


No state shall, without the consent of Congress, lay any duty of tonnage, keep troops, or ships of war in time of peace, enter into any agreement or compact with another state, or with a foreign power, or engage in war, unless actually invaded, or in such imminent danger as will not admit of delay.

The whole point of fractional reserve money is to implement feudalism and perpetual state sponsored war. So when the FED was formed to give private bankers control over the U.S. economy and that power was used to secretly strip U.S. citizens of assets and used those assets to Fund WWI before it started it clearly violates the provisions of article 1 especially war preparations and agreements with foregn power and military expenditures except in times of imminent danger.

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4 Justice Now
Our Country's Forefathers must be turning over in their graves.

I'm afraid they can't at all be thinking very highly of us (citizens) these days, mostly due to our lack of action and/or indifference (with a few exceptions of course).

I'm certain many people are simply waiting for a leader step forward, someone that we can believe in and support, or possibly that last straw that can't be far away at all.

Either way, as a citizen I'm feeling much shame these days.


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Please provide a link to the essay. I can't seem to find anything in his name that says anything like that.

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