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.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us

A New Bear Stearns Deal - thank you, Tanta.

You can read the insight into the BS offering - and feel free to interpret "BS" however you like. After seeing their obvious choice for master servicer I prefer to go with the vulgar slang interpretation myself....

Here's the deal as laid out to the SEC. Now, in order to find the potentially glaring problem (with regard to MSF) with not only this trust but ANY prospectus, all you have to do is pull up the document (click on the lick), once the doc loads hold down Ctrl and hit the "F" key once. In this instance, when the "find" function loads type in " servicing compensation " and search a read a few of the locations where the phrase pops up.

Now, if we look under the heading of "Servicing Compensation and Payment of Expenses"
we find this: "In addition to the primary compensation described above, the related servicer will retain all assumption fees, tax service fees, fees for statements of account payoff and late payment charges and certain other amounts as set forth in the related servicing agreement and the Pooling and Servicing Agreement, as applicable, all to the extent collected from mortgagors."
All it will take is for one monthly payment on one one loan to be held one day beyond the grace period allowed for that loan and, once again, you're off and running with Mortgage Servicing Fraud.

Incidentally, for those of you just reading this for the first time, payments being held until past due was a big complaint in USA/Curry v. Fairbanks and continues to be one of the mainstays in getting Mortgage Servicing Fraud rolling in any particular instance. Look at the latest Mortgage Servicing Fraud victims that Countrywide just created out of the Katrina victims.

As long as these deals contain this language,servicers will be tempted to push the envelope. And until the servicers are sufficiently monetarily and criminally punished, Mortgage Servicing Fraud will continue to thrive. Otherwise, allowing them to "voluntarily" fork over funds in exchange for admitting no wrongdoing will just be viewed as the cost of doing business by them. Let's cast this in a slightly different light. Were those funds handed over to Mr. Soprano (or Whitey Bulger) on a dark and foggy night, inside a warehouse, with a channel marker clanging in the distance  instead of being exchanged by men and women in expensive suits before a judge one might be tempted to call the transaction something other than "restitution".

Much like Al Capone, an accountant can take these guys down. But only if they have the law enforcement backup willing to handle the prosecution.
Quote 0 0
Write a reply...