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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Hey Guys,

Researching SEC info, I ran across this Task Force disclosure regarding disclosures on MBS's.  I don't know if it has been posted before, so here's the part I found interesting and the site.

Bob

Staff Report:
Enhancing Disclosure in the Mortgage-Backed
Securities Markets

    SEC Logo

U.S. Securities and
Exchange Commission
 
 
U.S. Treasury Logo

Department of
the Treasury
 
 
Office of Federal Housing  Enterprise Oversight Logo

Office of Federal Housing Enterprise Oversight

A Staff Report of the Task Force on Mortgage-Backed Securities Disclosure

January 2003

IV. Information Imbalance Issues

Some market participants have expressed concern that participants in the MBS markets use information they obtain in their capacities as originators, guarantors and servicers, among others, to select for purchase, sale or retention MBS or underlying mortgage loans that have more favorable characteristics than the average universe of MBS or mortgage loans. Assertions have been made that these entities have an unfair advantage over the marketplace generally in purchasing and selling MBS. In order to evaluate these concerns, it is important to note that at each level of the process of creating and selling MBS, the market participants involved will make certain choices about which mortgage loans or MBS to retain or sell. For example, lenders or pool sponsors select the underlying mortgage loans that they will securitize. Investors may also decide, at the time of a trade that they wish to purchase MBS having certain characteristics.

To review concerns about "favorable selection" or "cherry picking" based on possible information imbalances, it is also important to understand that market participants might view a transaction differently. In order to understand how selection practices may raise issues in the markets, it is helpful to identify the situations that raise a concern for some market participants.

First, some market participants are concerned that when other market participants routinely decide to keep purchased or created MBS in their portfolio, they are relying on information not generally available in making these decisions. In the MBS market, situations exist where a market participant may determine to buy, sell or hold a security or mortgage loan in its portfolio based on information in its possession and not otherwise publicly available. Entities have different reasons for determining to buy, sell or retain securities or mortgage loans, including their knowledge of the product and their business goals and objectives. Any entity involved in originating a mortgage, compiling a pool of mortgages for securitization or creating a MBS may have detailed information about the characteristics of the underlying mortgage loans. Determinations about what securities to keep or sell remain within the control of the originator, sponsor or holder of the MBS.

http://www.sec.gov/news/studies/mortgagebacked.htm
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arkygirl
Notice the date of this tidbit...January 2003!! Almost four years ago...and a good three years before everything fell completely apart.

Even though there was "concern" even that far back, nothing got done.

Retarded (or bought off?) regulatory agencies have worked very hard for the mortgage fraudsters. The SEC identified problems and filed reports, yet did nothing except justify their own jobs via the reports. The reports were undoubtedly used to warn the fraudsters which areas were being looked at and allowed them to restructure their fraud to avoid "hot" areas. It worked until they got so greedy that they crashed their own Ponzi scheme.

AAARGH!!! Now we will, one way or another, be forced to bail out these crooks. And in ten years they will have concocted another grand scheme, one even worse. How can we stop this nonsense once and for all? The system is beyond broken and looks out for no one except itself. It is maddening!

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We first heard of "Cherry Picking" out of CA litigation with Litton Loan.  In a deposition of a NEW CENTURY Officer, he described how CBASS "Cherry Picked" mortgages.  It was a year later that this report came out, and the word "Cherry Picked" was used by regulators from the U.S. Government!  Now many years later they still have not taken ANY measurable response to this.  Can we expect this to continue? It does nothing but reflect the inherent "Distrust" of government!  Its no wonder our founding fathers were so "Radical" in their view and disdain or Government!
 
I personally know of so many "Investigations" by state and Federal authorities, and not one has lead to one arrest!  And, most are saying they are"Quietly" working on the problem.
 
"I'm here from the government, and I'm here to help", 
 
Ya right!
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Gary,

I first heard "cherry picking" from you over 3 years ago.  If you remember in the first conversation I had with the FBI in early 2005 at my home.  They asked me if I thought my loan had been 'cherry picked".  I told them "hell yes" because of the equity I had in my home.

No investigation.  They told me that it would be tough to prove intentional fraud.  Boy are they dumb!!!

Bob
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