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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Worried About Us

Chase Denied Loan Mods for Now Forbidden Reason—Homeowners in Limbo

by Paul Kiel, ProPublica - February 4, 2010 11:57 am EST                                        

On the Saturday before Thanksgiving, Lesa Herron of Santa Rosa, Calif., opened a letter from Chase Home Finance (PDF). She’d been denied a permanent modification under the federal government’s loan-mod program, Chase said, because “Your hardship is not of a permanent nature.” No other reason was given.

For Herron, that was hard to understand. She was working two jobs and her mortgage payment still amounted to more than half of her income. She’d fallen two payments behind. If her money troubles were only temporary, it was news to her.

We at ProPublica reported last month that mortgage servicers are often not following the Treasury Department’s rules for the program and provided three examples. One involved another homeowner who, like Herron, had been denied a modification because his hardship was not “permanent.”


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Indeed We all should be worried! Fannie Mae, ( they own close to 90% of US Mortgages) has just instituted a directive to its servicers to employ a 'Default Calculator" for people applying for home loan Modifications. See the post/story under "New World Order". It is quite clear that this administration knew all along that the HAMP program was a smoke screen put up until they could figure out how and on whom to apply "moral hazard" standards to and how to pay 100 cents on the dollar to MBS investors, who along with Dodd & Frank put the average middle class American at risk.

Job loss, overinfated foreclosed homes in once strong middle class neighborhood, over inflated property assessments/ property taxes that have not gone down with the burst of the housing bubble, it goes on and on. Systematic destruction of the middle class. 

Beware if you have high equity value to loan obligation, they will be coming after you first, fast and furious. Servicers have been directed by Fannie Mae to apply the Default Calculator Framework to homeowners that are not even in default! The press release / directive can be seen on Fannie Mae's web site.
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PJ: you are so right about all of it!

Yes, Chase is still playing the same game but they must have employeed a new creative writer.

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Sara, if you follow all the news from both "camps" it is becoming quite obvious that there really is very little to be done. Modifications can not be executed since the actual owner of the note can not be identified. And at some point there will be a limit as to how many foreclosed properties can be held on a balance sheet. Without gainfully employed people and a stable JOB market theses properties will sit unsold.Couple that with stringent lending standards ( remember them) and there is an ever shrinking amount of people to qualify for a mortgage. A dilemma indeed

The fact is , the hard currency is non existent, they all know it and they know that the american people are quickly figuring it all out. The more the pretender lenders & the investor class try to spin everything the clearer things become. That is why they can not "print" money fast enough in DC to cover the balance sheets of their friends at Goldman & AIG who actually hedged against the implosion of MBS's and the housing bubble and have been made whole with again "vapor currency" also known as our national debt. 

The current position @ the FDIC pushing for "principle reduction's" on mortgages will yet again be and in my opinion the final blow to the american people. With banks being forced to put "toxic assets" back on their balance sheets, the FDIC who insures these banks will implode and require another taxpayer bailout.

The question here is who & how will an individual qualify for a "principle reduction" this is yet another smoke and mirror game. Again there will have to be "permission" granted from the trustee of the note lost in an MBS pool, not the Mortgage Servicer or the bank. Just like modification's good luck with that!

We need to get the fox out of the hen house, Dodd is going, Frank needs to be brought up on federal charges and Fannie & Freddie need to be shuttered NOW. 
We need adults in DC. Individuals that will tell the truth and work to fix this mess, which as we can see will not be easy as every so called "solution" has led to a much bigger problem.

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I like your postings...

But this right here:

Modifications can not be executed since the actual owner of the note can not be identified.

That's all air BS

I can tell you once they place it for collections for the most part anything goes. At least that's the way it was in our office. But to me I'm human like everyone else who comes unto a hard time. That doesn't mean its my job to mislead you. My job is to protect others that don't know as much as I do.

I NEVER for Chase or Citi had to get an investor approval for a modification. ONCE  placed in our ques it was up to US TO OBIDE BY THE FDCPA LAWS. Being a TOP COLLECTOR to ME  meant going the EXTRA MILE. I did eat, sleep and absorb my job immensely. By all means I knew before I called if you MIGHT HAVE A CAPABILITY TO MODIFY ANYTHING!

Everyone has their own expertise with or without a college degree. It's not hard to uncover the THEFT OF HOMES....Their leaving and letting the carnage happen daily. I myself always tried to UPHOLD THE LAW. BCUZ  I lack a license doesn't MEAN I WOULD LIE TO THE COURT the way I've caught them doing in my own case now. I've had my own attys adversary removed except for the 1st page, then a page out of a counter claim along with further "OBSTRUCTION OF JUSTICE". No matter how much they want to make me out to be A LIAR I WON'T DO IT! I will be HEARD I PROMISE! I'M FOR EVERY HARD WORKING AMERICAN WHOSE NOT BEING TOLD THE TRUTH!
BY the way anything I type here has been submitted to a 'COURT OF LAW already! They do have JUDGES AND ATTORNEYS COVERING FOR THE TRUSTEES...WHAT A RING AROUND THE OLE ROSEY HA GUYS?

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Worried About Us
So, topgun, you are saying that you, as a collector, could modify contracts that your employers didn't even own? Of course, the modifications were supposed to be executed to maintain value for the true owner.....whoever that may have been. Some investor.

After the modification (assuming any ever got done to the point of completion) who "owned" the contract then? When the modification contract was signed, who then claimed to be the owner with full enforcement powers at that point? Was it Chase or Citi who then "owned" the contract? If so, what happened to the real owner? Were they paid off? Tell us more, because this is a cloudy topic

What good are contracts that can be altered by parties not involved in the original agreement and who are not signatories on any of the original paperwork?

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 Mortgage write downs are just around the corner folks.  Trust's of MBS pools are being paid 100
cents on the dollar, averting billion dollar "class actions" against the likes of Goldman, Citi etal! 
And once again not only will the taxpayer flip the bill for it so will their children and their children's


Fannie Mae (FNM) said it plans to significantly increase its purchases of delinquent loans from single-family mortgage-backed security trusts.

Those purchases will help the mortgage lender preserve capital by reducing its funding costs. Because of new accounting standards, Fannie Mae's cost of purchasing most delinquent loans from MBS trusts and holding them will be less than the cost of advancing delinquent payments to security holders.

Fannie Mae said the purchases will not affect its efforts to prevent foreclosures under the Making Home Affordable Program.

The company plans to begin buying the loans in March. It has the option to buy loans that are delinquent for four or more consecutive monthly payments.

As of Dec. 31, the total dollar volume of all loans in single-family MBS trusts that were delinquent for four months or more was about $127 billion.

Fannie Mae's shares recently traded at 98 cents, down 3%. The stock has gained 84% in the past year.


-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;

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Topgun is right that many foreclosure proceedings go through whether it is proven that a company holds the mortgage note or not.

In my own foreclosure hearing, I tried to put a shadow of doubt in the judge's mind by asking for the wet ink copy of the actual mortgage that I signed.  I thought the opposing attorney was going to have a heart attack right there and then. LOL!  It didn't seem to matter to the judge since it was recorded in the county court house.  I tried to argue the fact that just because it was recorded (way back when) doesn't mean that it wasn't put in a pretty little package, wrapped with a red bow and sold afterwards.

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So, topgun, you are saying that you, as a collector, could modify contracts that your employers didn't even own? I worked at a 3rd party agency-I represented a national collection agency on behalf of Chase or Citi-I never saw the contracts unless I was digging for a way to contact them.The accounts I worked were already charged off. This means I was able to structure your debt usually a heloc loan to your ability to REPAY. GENERALLY I knew things were in a disarray before I ever called. I must also state most of the time since they were c/o they were in default. I attempted to take a case and turn it around to benefit both sides as the LAW REQUIRES...

IF I were to telephone you and tell you xyz then I'll be dammed it better xyz bcuz if not u could have my a**. So could they. If you told me u didn't belong to me that u were involved in a mod I would call and verify...Simple...If so they would call the company I worked for and pull the account. Now my bosses may not of liked that but I thought it was better for both sides. Now there may be some harassing bill collectors but I knew b4 I called usually just what chance I may have at negotiating anything before I ever phoned u.
I usually didn't have people trying the "Produce the Note " theory. I have now with what I've been put thru. I was able usually to diffuse any situation by attempting to be reasonable. Kind. Honest. My job isn't to beat up as to why you can't but why you can. To get to the heart of whats really happening. To be a human. This is where  they are FAILING THE AMERICAN HARDWORKING PEOPLE!
I'VE TAKEN THE INITIATIVE AND EARNED TWO RECUSALS FOR THE TRUTH I KNOW. I'm reasonable. However, don't appreciate people lying about me. My own atty has tried to sell me down a river of LIES. Oh I just can't wait anymore for their BS to be known.
So the collection agency is tied by sec of state to two of the larger foreclosure trustees nationally. Their also owned as a subsidary of 1st American Title. The B**** in ny also has a title company and represents them. The circle goes round and round...I just have a hard time with my own atty lying about me. I think he has continually lied to me. Maybe that he has even known all along who I worked for and just tried to make me out to be a low life no bill paying fool...When in fact I have documentation to show otherwise...That Citi is the scum of the scum if you ask me...To homeowners and bankers alike...I understand they continually put me in a situation of not knowing who to believe... See I believe in OLD SCHOOL . To verify what I'm being told...If not it could blow up in your face.
One could never predict the corruption one would face for trying to Tell The Truth..Sometimes these foreclosure trustees and servicers verify NOTHING...They just PROCEED to STEAL YOUR HOME...

Of course, the modifications were supposed to be executed to maintain value for the true owner.....whoever that may have been. Some investor. I NEVER VERIFIED ANYTHING WITH AN INVESTOR...I represented Chase/Citi as the servicer but most never questioned me...I wasn't questioned because showing sensitivity and honesty in a tough business did alot better for me...People just need a HELPING HAND...And if I truly thought you MEANT YOUR WORD and ATTEMPTED TO BE A STAND UP INDIVIDUAL I DID MY BEST TO NEGOTIATE WITH YOU. It's the lenders, attys and some judges that are hurting our system. I can't help I think the judges in my case are biased and impartial and can prove I'm not the only one who has ever questioned this b4 of these particular judges...
So the question NO ONE can ANSWER IS does a Judge by Recusing create the Exception necessary to it's jurisdiction? Meaning so they can decide the case? So far they all claim NO JURISDICTION to right their WRONGS! AND are aiding and abetting CRIMINALS at this point! If you try to tell the TRUTH US ATTYS AND EVERYONE ARE BULLYING PEOPLE!

After the modification (assuming any ever got done to the point of completion) who "owned" the contract then?NEVER MATTERED IN MY AREA...IF CHASE WAS DOING A MOD I GOT THEM TO PULL MY FILE SO I DIDN'T ATTEMPT TO BREAK THE LAW THE WAY I WAS ENCOURAGED TO. When the modification contract was signed, who then claimed to be the owner with full enforcement powers at that point? not sure I COULD TELL which client it was by the computer screen in front of me. Was it Chase or Citi who then "owned" the contract? If so, what happened to the real owner?I was never told who the REAL OWNER WAS...I never saw that paperwork. Were they paid off? In most cases Citi was the worst of the two about placing uncollectable accounts. Generally they were beat to hell before ever coming to us. The stories I could tell...But they've done everything to  cover up their corruption!Tell us more, because this is a cloudy topic

What good are contracts that can be altered by parties not involved in the original agreement and who are not signatories on any of the original paperwork? dam GOOD QUESTION....

 Better yet how do u tell lil ole me for 2.5 yrs that I have the right to sell mortgage notes on behalf of Chase and never have it in your contract to do so? How do you get by if It MEANS NOTHING to remove complete adversaries from a court record? Or a page out of a counterclaim w/no one investigating? Its called JUDGES COVERING CORRUPTION FOR OTHER JUDGES...AND ATTORNEYS...
ITS a total break down of THEFT! Since, they lied I can't find any RESPONSIBLE BANKERS TO DO ANY PROPER BUSINESS...I'm amazed for all the people who are left with nothing with no way to pay that here I am saying here's this banker and here's this banker...They were prepared prior to meltdown to spend $150,000 per month to 10-50m per month w/citi...The guy w/$150k a month wasn't purchasing a large enough amount for Citi to sell to him.

The other group with 10m-50m per month walked when Citi told them they wanted to make money once they sold them the worst debt possible. So when you know what I know and want to make a buck to pay your bills what are you suppose to do? ROLL OVER AND PLAY DEAD? NOT HAPPENING HERE...I don't care how many BILLIONS they have. I'm ALIVE AND WELL THANK YOU  VERY MUCH!
THEY'VE DONE what they've done...Now its CLEAN UP TIME! I will CONTINUE to STICK UP FOR EVERYHOMEOWNER? NEED A WITNESS? HERE I AM...One would have to pay for travel fees but I qualify as an EXPERT WITNESS 1ST HAND TO JUDICIAL CORRUPTION...And so far all they do is CONTINUE TO LIE TO EVERYONE! LIP SERVICE...I refuse to be LET DOWN! I've got a clue...I can distinguish right from wrong and they don't LIKE IT...

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Worried About Us
Oh, my, G-G-God! This is fascinating. And scary.

I didn't realize your were third party.  Chase or Citi had already charged off the debt. Then you renegotiated (or attempted to renegotiate) the contract. Who gets paid then? Your company? Or did Chase and Citi still demand a piece of the pie? That is what it sounds like.

This means that contracts as I once knew them are not really worth anything except the profit that is earned by chopping them into mincemeat at the beginning. Once that profit is bled off the pieces-parts, then everyone gets thrown to the wolves to scrounge around for whatever is left.

Sounds like you got worked over by the system, too. It is a cesspool. Even people trying to do the right thing were made accomplices to the fraud. Could it be because no one really understands how mortgages work now? I think so. It is not a simple contract between you and your bank anymore. It is a contract between you and many other people who are not listed on the mortgage and who you have never heard of.

It is like an interception of a football. There are two teams. The QB aims it at his receiver, but in between the other team nabs it and runs with it. Then he is tackled and the ball goes into play to be grabbed by someone else. Over and over. Before it is over everyone on the field has had their hands on the ball.

But since the game is played in the dead of night in the dark no one is able to follow the plays to determine who rightfully "wins" or even to know if points were scored so everyone takes some points for themselves. No one knows if or when there was a touchdown.

After all this the ball goes flat and is tossed into the stands for some fans to play with for awhile. And then the ruined ball gets sold to someone who thinks it is worth something because no one bothers to tell that buyer that all the air has been sucked and knocked out of the ball.

Meanwhile, back on the field the borrower's bloody body which has been trampled flat, gets hauled away and tossed into a meat grinder for the credit agencies to chew up for a while. Repeat, repeat, and repeat.

Good luck with whatever you are going through with rotten attorneys, court cases, etc.

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