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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XRated

Bailed-out Mortgage Servicers

Updated: Jun 25, 2009

 

http://bailout.propublica.org/main/list/category/Mortgage%20Servicer

 

Note:  TARP funds to individual mortgage servicers are increasing. There are now 20 servicers on recipient list, most of whom we are all too familiar with. 

 

 

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XRated
In case that link doesn't work, here are the sordid details:
 
PURPORTED HOME AFFORDABLE MODIFICATION PROGRAM

                             as of 6/25/09

1.  Countrywide Home Loan Servicing  . . . $5.2 billion
2.  Chase Home Finance . . . . . . . . . . . .  $3.6 billion
3.  Wells Fargo Bank, NA  . . . . . . . . . . .  $2.4 billion
4.  CitiMortgage  . . . . . . . . . . . . . . . . .  $1.1 billion
5.  GMAC Mortgage  . . . . . . . . . . . . . . .  $1 billion
6.  Bank of America, NA  . . . . . . . . . . . .  $804.4 million
7.  Select Portfolio Servicing
     fka Fairbanks Capital  . . . . . . . . . . . . $660.6 million
8.  Saxon Mortgage Services . . . . . . . . . . $632 million
9.  Ocwen Financial Corporation . . . . . . . . $553.4 million
10. Aurora Loan Services  . . . . . . . . . . . . $459.6 million
11. Wilshire Credit Corporation . . . . . . . .  $453.1 million
12. Home Loan Services, Inc. . . . . . . . . . .$447.3 million
13. Carrington Mortgage Services . . . . . .   $131 million
14. Nationstar Mortgage  . . . . . . . . . . . . . $117.1 million
15. Green Tree Servicing  . . . . . . . . . . . .  $  91 million
16. RG Mortgage Corporation  . . . . . . . . .  $  57 million
17. Residential Credit Solutions  . . . . . . .  $  19.4 million
18. CCO Mortgage  . . . . . . . . . . . . . . . .  $  16.5 million 
19. First Federal Savings and Loan. . . . . .   $  770 thousand
20. Wescom Central Credit Union . . . . . . .  $  540 thousand
 
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Sara
And now we see why they all felt the need to give themselves some (not so well deserved) raises!  They did such an excellent job "fleecing" the government with the poor-mouthing!
 
S
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4 Justice Now
I'm not sure, what I believe is the worst part of this situation? 

(1) The fact that our hard earned tax dollars are being so willfully given away to nothing less than a bunch of outright criminal sleazebag Banksters; or

(2) Our hard earned tax dollars are being given away by a bunch of outright worthless, sleazebag politicians, who are nothing less than treasonous whores who continue to favor the criminal rights of the Banksters & Wall Street Leeches over those rights, which, were clearly established to protect the honest and hard working peoples of America, and their families; or

(3) The fact that they have done so simply in order to support their own selfish and greedy way of existence by continuing to line their own filthy pockets at the ultimate price of this country's destruction by the evil hands of these terror peddling, treasonous, leeches bought and paid for with our own tax dollars.

MY Opinion.

R,

4J
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TrippleX
Ocwen Financial Corporation . . .
  and these dirtballs got $553.4 million in TARP funds !
 

Homeowner sues loan servicer

RICO suit mirrors other cases against Florida company

By Sananda Sahoo  06-12-2009
 
As originally reported:

Pamela Williamson started paying off the mortgage on her house on Crossbrook Drive in Nashville after buying it in 2005. But payments soon started getting out of hand.

From the next year until recently, she began receiving mailings and phone calls from her loan servicer, Delaware-based Ocwen Loan Servicing, several times a month. She says the notifications from Ocwen included demands for the payment of various fees and late charges.

When she requested an accounting of her payments, she received incomplete statements of the money she paid on her house. Early this year, Williamson received a surprise foreclosure notice from a Memphis-based law firm acting on behalf of Ocwen.

This week, Williamson and her attorney, Kline Preston, sued Ocwen under the Racketeer Influenced Corrupt Organizations Act, accusing the company of fraud using U.S. mail and wire services. The defendants include Ocwen Loan Servicing, its Florida-based parent Ocwen Financial Corp. and various unnamed employees, officers and directors of the Ocwen group of companies. Other charges in the suit – which is available here – include "violation of contract", "false and deceptive means of collecting debt" and "harassment."

Williamson is seeking statutory and punitive damages to be settled by a jury in addition to at least $150,000 in compensation plus court and attorney fees. Plaintiffs in a RICO lawsuit can request three-fold compensation for damages suffered.

Ocwen made every effort to assist the homeowner on the various occasions when she fell behind in her payments, said Paul Koches, executive vice president and general counsel at Ocwen Financial, via e-mail.

"We worked out a special payment plan and later actually modified the terms of her loan to accommodate her," Koches wrote. "Throughout this time, the homeowner repeatedly apologized for late payments and expressed gratitude for our patience and assistance, saying at one point we 'have been an OUTSTANDING company to work with' (emphasis in original)."

Koches said Williamson did not contact the company's Ombudsman Department, which handles homeowners' problems with their mortgages.

"The assertions of wrongdoing are without any factual or legal merit and that we will defend the case vigorously in court," Koches said.

Ocwen is no stranger to the courts or to controversy. In its most recent quarterly report with the Securities and Exchange Commission, the company details the progress of a series of legal actions accusing it of charging improper fees or misapplying loan payments. (Search for 'state courts.') Many of those suits have been consolidated since 2004, but little progress has been made toward any resolution.

In 2002, Kweku Hanson, a Connecticut resident, brought a class action against Ocwen Federal Bank, a now-defunct subsidiary, and Ocwen Financial in federal court on charges of racketeering, breach of contract, unfair debt collection practices, harassment, mail fraud and others. The lawsuit seeks punitive damages in the amount of $1.5 billion.

A Huffington Post story from earlier this year also outlined other recent regulatory issues. The Department of Veterans Affairs hired Ocwen in 2003 to manage and sell thousands of foreclosed properties owned by the department. A 2007 report from the Government Accountability Office said the VA "has not been satisfied with Ocwen's performance" and had levied $1.3 million in penalties in 2005 – when housing market was at its peak – after Ocwen did not meet sales targets.

The GAO report also said Ocwen charged the VA for home-upkeep repairs that were never made and let numerous houses fall into disrepair, which the GAO says might have lowered property values.

And in 2000, Ocwen Federal Bank paid $50,000 to settle charges from HUD after violating loan-servicing rules. Four years later, the Office of Thrift Supervision forced Ocwen Federal to sign an agreement promising to improve its compliance with fair-lending laws.

Commenting on the various run-ins Ocwen had with law, Koches said that in April, the Board of Contracts Appeals decided the VA issue in Ocwen's favor, reversing all penalties. The VA has not challenged that decision, he said. 

In the Hanson case, the federal judge granted summary judgment in Ocwen's favor, Koches said. In 2005, the court ruled that the servicing fees and charges challenged in the Hanson and all other consolidated lawsuits are proper under the controlling mortgage documents.

Some nine years ago, Ocwen "had a disagreement with HUD's interpretation of certain loan servicing guidelines concerning a small number of loans we acquired in the mid-1990s", Koches said. "To avoid costly and protracted proceedings, we agreed make an administrative payment of $50,000. There was no fine, penalty or finding of liability."

http://www.nashvillepost.com/news/2009/6/12/home_owner_sues_loan_servicer
 
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