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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Banks Look to Forestall Foreclosures

02/12/08 - 01:27 PM EST

 

Six major banks and the Bush administration on Tuesday said they had agreed to a new plan to pause the foreclosure process for the most delinquent of mortgages in an effort to keep homeowners in their houses.

Through "Project Lifeline," Bank of America(BAC - Cramer's Take - Stockpickr), Citigroup(C - Cramer's Take - Stockpickr), Countrywide Financial(CFC - Cramer's Take - Stockpickr), JPMorgan Chase(JPM - Cramer's Take - Stockpickr), Wells Fargo(WFC - Cramer's Take - Stockpickr) and Washington Mutual(WM - Cramer's Take - Stockpickr) said they would reach out to homeowners more than 90 days delinquent on their mortgages to work out solutions.

"This is an important new initiative, targeted to reach not only subprime borrowers, but all 90-day delinquent homeowners nationwide with a step-by-step approach to find individual solutions to individual problems," Treasury Secretary Henry Paulson said in a press conference that also featured Housing and Urban Development Secretary Alphonso Jackson and BofA Consumer Real Estate and Insurance Services Group President Floyd Robinson. "We encourage all HOPE NOW servicers to adopt this new program."

HOPE NOW is an alliance of mortgage lenders, government officials, nonprofits and other groups launched last fall, aimed at minimizing the impact of the housing downturn through a private sector-led effort. The six banks involved in Project Lifeline together represent 50% of the mortgage market, Paulson said.

Project Lifeline is intended to complement an earlier plan worked out amid mortgage lenders, government officials and the American Securitization Forum to aid subprime borrowers who stayed current on their initial teaser mortgage rates, but have struggled to keep up with payments as the rates went up. Under the plan, some borrowers could see their teaser rates frozen for up to five years and could be fast-tracked to refinance their loans.

"None of these efforts are a silver bullet that will undo the excesses of the past years, nor are they designed to bail out real estate speculators or those who committed fraud during the mortgage process," Paulson said. "These efforts are to help American families who both want to and can, through a loan modification or refinancing, stay in their homes."

Stocks of all six banks were rising modestly after the announcement.



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"This is an important new initiative, targeted to reach not only subprime borrowers, but all 90-day delinquent homeowners nationwide with a step-by-step approach to find individual solutions to individual problems," Treasury Secretary Henry Paulson said.

And here's how to qualify...

Stand on your head while rubbing your belly.  Touch your finger to your nose, and click your cowboy boots three times.
If you do not follow these directions in the exact order in which the guidelines are written, you will not qualify for, "Project Lifeline".
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Oh phooey.

I got the wrong instructions.

Stand on your head, cross your eyes, arms and legs and whistle dixie.

No wonder it didn't work.

Dee
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Digger
Does this apply to those whose payments the crooks intentionally refused so they could force them into a manufactured default and steal their homes and equity?

I think the victim's of MSF need to be helped far more, or at least as well as those conned by the ARM bait & switch scam.
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BISHOP
We should expect more of the ridiculous from this administration that is scrambling to salvage an economic meltdown that is unwilling to take the actions necessary to solve the problem immediately by signing executive orders that establish a new court system that provides the victimized defendant of fraudulent mortgage servicing with a means by which he can obtain relief from both state and federal judges that refuse to follow the rules of law, the governing the rules of evidence, existing statutes and doctrines of standing and capacity.

Mr. Bush, do something worthwhile by demanding legislation from the Congress that establishes an oversight court system governing complaints from the ocean of people victimized by courts that deprive due process to the pro se litigant that is trying to defend his property in the so-called justice system that is anything but.
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Ohio
Why shouldn't they want to "offer" help. I bet they are grinning ear to ear about tacking on any amount they can contrive to the principal balance and calling it a loan modification.

t's either agree to a bloated principal balance or move out. It's a win win situation for them.

We were offered 3 separate loan modifications. The terms of the first two included a principal balance increase from 165,000 to 198,000...payments increased by 400.00 per month and required a 7,000.00 "contribution". Whatever the hell that is.

I told them to stick their offers in their ear.

This is just another ruse to rape an pilage the American homeowner BECAUSE THEY CAN. We are inferior to them, we have too much to lose to be treated fairly. They can call it project lifeline all they want. I think what many American homeowners will be thrown is a "lifeline" with an anchor tied to the end of it. 

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A Citizen
Awww, are they throwing us (homeowners) a bone, or are they covering their own a$$es in fear of this?

Type this into your favorite search engine...

"Congress and mortgage cram downs"

Imho, THIS IS WHAT THEY FEAR!
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A "Life Line" ... more like tie 'em to the anchor, sink them with the ship while we take the "booty" and run....20th Century Pirates more like it ...Aaaarrrggg Matey. 
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