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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Stephen

Ever since the law enforcement officials from all 50 states signed on last month to a highly publicized investigation of big mortgage lenders, there has been a public tug of war.

The banks, who have been subjected to bad publicity, have played down the investigation and want to see it end as quickly as possible. The state attorneys general, however, say that there is an opportunity to fundamentally change the way banks deal with defaulting borrowers so that more people can stay in their homes by modifying their mortgages, and that they will take the time needed.

“The large banks say they are doing everything they can to avoid foreclosure, but that is not the reality on the ground,” said Patrick Madigan, an assistant attorney general in Iowa who is a lead figure in the investigation. “The question is, Why?”

http://www.nytimes.com/2010/11/18/business/economy/18mortgage.html?ref=business


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A decade ago folks on this forum and others first offered the answer to Mr. Madigan’s question.  We took issue with the universal notion that ‘banks’ lose money on foreclosures.  We have at least reached a point where most people see the servicer as the problem and the reporters are beginning to make a clear distinction between banks, investors and servicers.  

If Mr. Madigan would simply read the volumes of reports made in the past few months he’d find the answer to his question.  Foreclosures are extremely profitable for the banks because the banks own the servicers.

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Stephen

Any toddler could figure out that banks wouldn't foreclose if they didn't want to.

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Sara
Why can't people see that the banks/mortgage servicers do make money off of foreclosures?  It's all in the accounting procedures, more commonly known as "doctoring the books" to make the stockholders think things are sitting pretty.

S
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