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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Getting Rid of Witnesses
Bear Stearns halts lending in Irvine, cuts 150 jobs

December 17th, 2007 · 3 Comments · posted by Matt

Bear Stearns is closing its loan making operations in Irvine, letting the remaining 150 workers go today, the company said.

Today’s layoffs are in addition to 650 nationwide job cuts announced at the end of November, the company said. Those cuts included an undisclosed number in Irvine. CLICK HERE to read more on that news.

However, Bear continues to expand operations of loan servicer EMC Mortgage in Irvine. The company opened an EMC office about nine months ago and has hired 300 workers. It continues to hire about 40 a month, mostly in loss mitigation, the company said.

It also will continue to make loans from its office in Scottsdale, Ariz.

And back in October, the company said it was merging Irvine-based Encore Credit with Bear Stearns Residential Mortgage, eliminating 310 jobs. Read more by CLICKING HERE.

Today’s news marks an end to local loan making by folks of Encore Credit, which was founded by Steven Holder and Shabi Asghar. Holder, who also co-founded New Century Financial, stayed with ECC, Encore’s parent, when Encore was sold to Bear in a complicated deal that had ECC paying more to Bear than it paid to ECC. Asghar joined Bear at the time of the sale. He was not immediately available for comment. ECC later sued Bear over the deal. Read more on the suit by CLICKING HERE.

Here’s a statement from Bear on today’s job cuts:

“As we indicated at the end of October, we are continuing to rationalize our business, monitor staffing needs and align our infrastructure with current market conditions. We are deploying resources in areas where growth opportunities are greatest and to reduce cost in areas that can no longer justify the current level of infrastructure. We continue to hire strategically across the firm, including areas such as loss mitigation to further grow our business both domestically and internationally.”

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~beenawhile
It continues to hire about 40 a month, mostly in loss mitigation, the company said.
 
 
Oh yes, now wouldn't this be partly due, to all of the manufactured Foreclosures they have created?
 Oh how can it be done.
 Crediting payments late, reporting the "arms" borrowers late to the credit bureaus, ruining their credit making any possibility of re-fi impossible for the borrowers. & THEN RE-SETTING THE "ARMS" LOAN interest BEFORE ITS INCREASED DUE DATE.
 
Wow, what a great way to manufacture a foreclosure.
 Gosh, it is so much easier for them to steal homes with an "arms" loan that it is a fixed. Ill bet they all wish we were all an "arms" loan.
 
In the meantime, the fixed borrowers suffer from the multitude of created expenses, on their accounts that they are forced to pay, until they no longer can. Bye Bye American Dream & hello homelessness.
 
Wonder what Schwartzanegger's take on this info is.

 
 
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~beenawhile
I ask this question because I know some excellent responses will be brought to the board, when answering this.

What are your thoughts on this statement? We continue to hire strategically across the firm, including areas such as loss mitigation to further grow our business internationally.”
 
I for one despise the thoughts, of an American company such as this being in operation upon foreign soil.
Though, I know this is already in existence. What are all of your thoughts on American Mortgage industries in foreign lands, and what consequences, could America suffer at the hands of the same practices happening to homeowners in other nations?
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Ed Cage

Dear "Getting Rid of Witnesses"

Just as I previously posted, Bear Stearns Residential will fail early next

year.  The “merge” with Encore Credit is only a ruse to hopefully calm

investors. Same goes for these current relatively small job cuts.

 

FACT: Wall Street usually rewards mergers and job cuts.  It sends a message

that "we intend to be more thrifty and combine resources in the future."

 

However the truth is that the Bear is in real trouble both with their mortgage

unit and their disastrous Wall Street state of affairs which can no longer be

artificially propped up by temporary infusions of their own cash.

 

Bear Stearns is attempting to put on a happy face while their own insiders

are secretly bailing out. In order to stop the bleeding before it is too late

Bear must now desperately and quickly seek a Citi "Sell your soul to the

Devil" type deal.  It is their last chance – In an effort to buy time Bear is

resorting to cosmetic and quite temporary measures. Next intended

money target: The deep pockets of the oil rich Mideast.

 

Bear Stearns can’t go to the mega Mideast Abu Dhabi* funding types as
Citigroup did in an effort to convert dubious holdings into now desperately
needed hard cash if their hat in hand journey is preceded by a Bear stock
collapse. Thus the token job cuts and the cosmetic “merge” with Encore
Credit.

 

   *Citigroup sold a $7.5 billion stake to Abu Dhabi making AD the single
        largest Citi stock holder. The terms of the Abu deal were so sweet for Abu
        Dhabi that a colossal profit is virtually assured with little chance of AD
        losing any money. Bottom Line: AD really broke it off in the arse of Citi.

So they are not only “getting rid of witnesses,” Bear is fighting for its life. 

Ed Cage / ecagetx@tx.rr.com / 972-596-4363

PS The failure of Bear Stearns (Mortgage unit) is inevitable.

 

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those statements from beenawhile were really stupid. what do you know about the business anyway? "manufactured foreclosures". are you aware that it costs a lender more money if people default on their loans than they would make to keep servicing it?Lenders do not want people in foreclosure. Arm loans are not the problem, they aren't a new product, they have been around a long time. People should be responsible for finding out exactly what they are getting themselves into. Like responsible adults. Adults don't need their hands held, or to be told to wear a seatbelt. crediting payments late? i have never had a late payment on anything because i dont make them late! That is really a very stupid conspiracy theory.
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Pest Control
So you say YOU never lied to anyone about a mortgage, Points, Fee's or anything? The Judge will or might ask that question during the STOCK FRAUD trial. Did you swim with the SHARKS?
 
You might want to have an answer...
 
You might stay and learn a LITTLE MORE about all this. You might need it later on....Do you know anything about Mortgage Servicing Fraud?
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Pest Control

Mortgage Insider » Blog Archive » Hottest topics in lending: Your opinion here - OCRegister.com#comments#comments#comments

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Ed Cage

worked there wrote:

"what do you know about the business anyway? "manufactured

foreclosures". are you aware that it costs a lender more money if

people default on their loans than they would make to keep servicing

it?Lenders do not want people in foreclosure."

 

Dear "worked there"

Can it be that you don't even understand the difference between

"lenders" and "borrowers" and what they do?

 

Can it be that you don't understand that foreclosures are more

often than not *profitable* to the lender?*  Ever heard the terms

"equity" or “turning a very fast profit?”

 

Is it possible you don't understand that if the lender felt it would be

financially prudent not to foreclose immediately they could find a

way not to be forced into it?  Yes they do indeed “manufacture”

reasons to foreclose.

 

And then there's this from Mr worked there:

" crediting payments late? i have never had a late payment on

anything because i dont make them late! That is really a very

stupid conspiracy theory."

Earth to "worked there":
Where have you been?  A primary reason for the existence of this
MSF forum is because the servicers do indeed, actually delay the
application of payments.  That's only 1 of hundreds of illicit tricks
used by the fraudsters… In no small part the sense of security that
encouraged firms like Citi Residential, EMC / Bear Stearns, AMC,
and Ameriquest to quite blatantly pull these scams was brought on
by the naivety of people like you who thought, "They wouldn't do that..
It's illegal... Obviously the real problem is that the borrowers are failing
to make their payments on time like responsible adults."

I've experienced a lot of cHucKLe:-)heAds in my 63 years but you
take the prize Mr worked there...

Ed Cage  /  ecagetx@tx.rr.com  /  972-596-4363
* Dear worked there: Lenders and Servicers are two different animals.
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~beenawhile
For Worked there,

Gosh, I'm sure sorry you feel that way. Stick around a while....LEARN ALOT....

So what company did you work for? Bear Stearns?

What did you do?
What was your job?

I don't need to waste my time telling you how the scams work, or EVEN POINT OUT ALL OF THE FACTS, of the HUGE PROFITS they make off of FORECLOSED HOMES.

Look around on the site you'll find all the information you need.

Merry Christmas Now,
~beenawhile

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first for Ed Cage. i have been in the mortgage business for 15 years. i would understand alot. i have always worked for "lenders" so i would say i know what the difference is between a "borrower" and a "lender". Thanks though. I have never had a problem with anyone applying my payments late, whether it was a credit card, auto or mortgage payment (my servicer is Wamu). Maybe i have just ben "lucky".... for beenawhile- i did work for Bear Stearns, i just got laid off last week. I was an underwriter there, and i will stick around and LEARN ALOT i hope.
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Joe B
Worked-

     I understand your skepticism. I too have never had a problem with myriad credit cards, auto loans, home equity loan, and several previous mortgages...not once!

     It isn't until my current problem occurred that I experienced this phenomenon. If you told me this was happening before it happened to me, I would tell you that you were crazy; companies don't behave like this and stay in business. However, not only does it happen, these companies do stay in business, and many of them actually thrive! Not that it matters, but I am not sub-prime, and never have been.

     I won't cover the wide variety of issues that happen, because you can review this site, and many people have done a good job explaining their issues admirably. I would encourage you to take a stroll around the site, and judge for yourself. I think you will find the stories compelling!

     I promise you that servicing fraud is real, expanding, and is criminal. Can you imagine showing the judge at the foreclosure hearing your processed checks, money gone from your bank account, and other supporting documents that demonstrate that you are current, and the opposing counsel accuses you of forging the documents? Sound impossible? Nope, it happened, and I have been fighting them ever since! Again, I can go through some stories that would shock your senses. However, it does happen. Just because it hasn't happened to you, doesn't mean it is not happening.

     Again, I understand your reluctance to believe this problem. However I urge you to look around and maybe even ask some questions on some of the threads, and you can decide for yourself. I think you may change your mind once you have seen what some of us are going through. There are many here that would be happy to answer your questions (most of them politely), and fill in the blanks to help you understand. I hope you take the time to do it, because it may help you decide which job offer to take for your next position. It most certainly will provide you with the information you need to protect yourself if it does ever happen to you.

     Good luck, and let us know if we can help.

JB
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WT, I understand that it may be difficult to believe that these servicing issues really exist but I've got two thing that may help make the concepts more concrete for you.

1.) USA/Curry v. Fairbanks. 281,100 FTC-certified victims of Fairbanks Capital Corp., n/k/a Select Portfolio Servicing had similar claims that their payments were posted late. That isn't a random occurrence. At one point, Fairbanks/SPS claimed they serviced 750,000 loans. They have also claimed that as much as 40% of their portfolio was in default at any given time. Interestingly enough, 281,100 isn't that far off from 40% of 750,000.

2.) I have concrete evidence in the form of a canceled check, combined with a court record, that Fairbanks/SPS, for whatever reason, had a payment of mine in their possession for 11 days before processing it. Their local legal counsel attempted to get me to erroneously admit, on the stand, under oath that the processing date on the back of the check was the date that the check was received. The only problem with that argument was that the check was stamped "received" 11 days earlier on the front.

If you can keep an open mind about Mortgage Servicing Fraud I'm sure that the participants here will try not to beat up on you too much. I would be willing to bet that a lot can be learned from both sides of the fence.


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Ed Cage

Worked there wrote:

first for Ed Cage. i have been in the mortgage business for 15 years.

 i would understand alot. i have always worked for "lenders" so i would

say i know what the difference is between a "borrower" and a "lender".

Thanks though. I have never had a problem with anyone applying my

 payments late, whether it was a credit card, auto or mortgage payment

(my servicer is Wamu). Maybe i have just ben "lucky".... for beenawhile-

 i did work for Bear Stearns, i just got laid off last week. I was an

underwriter there, and i will stick around and LEARN ALOT i hope.”

 

 

Dear worked there:

My mistake; I made an error. I meant to say the difference between lenders

and servicers rather than “borrowers.” I always admit my errors. As you can

see in my footnote I did say, “Lenders and Servicers are two different

animals.”

 

I must say that if you were a “Bear Stearns underwriter” as you claim the

Bear is in much worse shape than I thought.. I can’t make myself believe

that you have much in the way of formal education, much less the basic

communications skills required to be a Bear Underwriter as you claim.

 

As for your plan after being laid off: “i will stick around and LEARN A LOT

 i hope.”  That’s commendable Mr. worked there but I don’t see another

underwriting job in your future.  You have the communications skills of a

third grader.

 

I will give you credit for this explanation you offered, “Maybe i have just

ben "lucky"....  

 

So here’s my post as it reads with “servicers” inserted for borrowers as

originally intended:

 

ON: - - - - - - - - - - - - -

 

worked there wrote:

"what do you know about the business anyway? "manufactured

foreclosures". are you aware that it costs a lender more money if

people default on their loans than they would make to keep servicing

it?Lenders do not want people in foreclosure."

 

Dear "worked there"

Can it be that you don't even understand the difference between

"lenders" and "servicers" and what they do?

 

Can it be that you don't understand that foreclosures are more

often than not *profitable* to the lender?  Ever heard the terms

"equity" or “turning a very fast profit?”

 

Is it possible you don't understand that if the lender felt it would be

financially prudent not to foreclose immediately they could find a

way not to be forced into it?  Yes they do indeed “manufacture”

reasons to foreclose.

 

And then there's this from Mr worked there:

" crediting payments late? i have never had a late payment on

anything because i dont make them late! That is really a very

stupid conspiracy theory."

Earth to "worked there":
Where have you been?  A primary reason for the existence of this
MSF forum is because the servicers do indeed, actually delay the
application of payments.  That's only 1 of hundreds of illicit tricks
used by the fraudsters… In no small part the sense of security that
encouraged firms like Citi Residential, EMC / Bear Stearns, AMC,
and Ameriquest to quite blatantly pull these scams was brought on
by the naivety of people like you who thought, "They wouldn't do that..
It's illegal."...

I've experienced a lot of cHucKLe:-)heAds in my 63 years but you
take the prize worked there...

Ed Cage  /  ecagetx@tx.rr.com  /  972-596-4363
* Dear worked there: Lenders and Servicers are two different animals.

OFF - - - - - - - - - - - - -

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Digger

Now that the truth is coming out, I wonder what Bear Stearns told President Puppet during their White House meeting earlier this year.

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O -

That's funny, President Puppet

 
Digger wrote:

Now that the truth is coming out, I wonder what Bear Stearns told President Puppet during their White House meeting earlier this year.

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