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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Digger
Contact this reporter and tell him the truth behind mortgage servicing fraud and help put pressure on these criminals.  It is obvious he does not know what is really going on.  Demand to be heard and demand that you be allowed to testify at the next hearing.  Keep trying and do not give up.

Mortgage Servicers To Face Scrutiny From US House Wednesday

WASHINGTON -(Dow Jones)- U.S. House lawmakers are expected to put heavy pressure on mortgage-servicing firms at a Wednesday hearing, even as financial firms seek to show they are taking more aggressive steps to help struggling borrowers.

"We're ready to say that next year we will have to rewrite the servicer laws," House Financial Services Chairman Barney Frank, D-Mass., said Tuesday.

Frank's panel is scheduled to hear testimony from trade groups representing a wide range of mortgage servicers, as well as individual banks such as Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM).

Lawmakers have been increasingly disappointed that financial firms have only half-heartedly embraced efforts to stem the record numbers of foreclosures that have been a major cause of the global financial crisis. Rep. Melvin Watt, D- N.C., said lawmakers continue to favor bolder steps, including a 90-day halt on all foreclosure proceedings.

"I think there's a growing recognition that more and more and more needs to be done," Watt said. "We will certainly continue to press the issue."

Some firms, such as Bank of America and JPMorgan Chase, have been stepping up their efforts to work with borrowers in response to the political backlash. Two weeks ago, JPMorgan announced a plan to modify the terms of $70 billion in mortgages for borrowers who are either behind on their payments or soon could be. Bank of America has already unveiled two loan modification proposals, and Citigroup Inc. (C) announced its own effort Tuesday.

Servicers have long complained that the contracts and laws governing loan- servicing agreements have prevented them from more aggressively modifying the terms of loans. The situation is frustrating to Frank, who said the system cannot work if all of the interested parties are prevented from making a decision on a loan because of existing laws.

A backdrop for the hearing will be the Bush administration's announcement Tuesday of a new plan to modify the terms of mortgages with help from Fannie Mae (FNM) and Freddie Mac (FRE). U.S. officials were optimistic the plan would speed the modification of certain loans that are more than 90 days or more past due, although documents released by the government estimated the plan could " ultimately help thousands of borrowers."

Watt said he was "pleased" that the administration was attempting to help more borrowers, though he noted that it was more limited than steps Democrats have endorsed.

Some Senate lawmakers were more critical.

"These voluntary plans sound nice, but they don't do the job," Sen. Charles Schumer, D-N.Y., said in a statement.

Senate Banking Chairman Christopher Dodd, D-Conn., said the new program announced Tuesday shouldn't be considered a replacement for a broader foreclosure-mitigation program that is under debate within the administration.

-By Michael R. Crittenden, Dow Jones Newswires; 202-862-9273; michael.crittenden@dowjones.com

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WaitAMinute.....
THIS was suppose to be HCFS hearing those 2 hedge fund guys got their sorry a$$e$ dragged to:

http://financialservices.house.gov/schedule.html

http://www.house.gov/apps/list/press/financialsvcs_dem/press102408.shtml

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i sent him an email along with examples of fraudulent pOA agreemnts on file with the county clerk (witnesses never working for the bank/using old POA to update county clerk records)-oh the tangled web they have woven-we need to be heard by congress not the servicers

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Me too.  I sent him copies of some our recent pleadings and memorandums in which we detail to the Court the fraud in our mortgage.

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THE SCAM FINALLY SURFACES - Paul never intended to buy up distressed mortgages.  The homeowner has been raped yet again by Washington and Wall Street.

http://online.wsj.com/article/SB122650321703420903.html

WASHINGTON -- Secretary Henry Paulson said the Treasury has put a plan to purchase illiquid mortgage-related assets on hold.

Meanwhile, the Treasury Department, signaling a new phase in its $700 billion financial-rescue plan, is considering requiring that firms seeking future government money raise private capital in order to qualify for public assistance, according to people familiar with the matter.

The move isn't expected to apply to the existing $250 billion capital-purchase program, which is already injecting money into banks. But Treasury is considering attaching such conditions to any of its future capital investments, these people said.

"We are carefully evaluating programs which would further leverage the impact of a TARP investment by attracting private capital, potentially through matching investments," Treasury Secretary Henry Paulson said in a broad speech on the Troubled Asset Relief Program, known as TARP, the global credit crunch and the government's recent steps to address the financial meltdown. "In developing a potential matching program; broadening access in this way would bring both benefits and challenges."

At the same time, Treasury is unlikely to conduct any auctions to purchase bad loans and other troubled assets -- the original intention of the $700 billion rescue plan. Instead, Treasury is expected to continue focusing its firepower on injecting capital directly into the financial sector, these people said.

"Our assessment at this time is that this is not the most effective way to use TARP funds, but we will continue to examine whether targeted forms of asset purchase can play a useful role, relative to other potential uses of TARP resources, in helping to strengthen our financial system and support lending," he said, according to his prepared remarks.

House Financial Services Chairman Barney Frank (D., Mass.) said that Treasury disagreed with the plan to put asset purchases on hold. "We have a need to use that funding" for that purpose, Mr. Frank said at a hearing on Capitol Hill. Mr. Frank noted that Congress gave Treasury explicit authority to buy up mortgage-backed securities and whole mortgage loans as part of TARP.

Treasury has just $60 billion left in its rescue fund, and either the current or next administration will have to turn to Congress to request the second half of the promised $700 billion. Treasury has so far committed $250 billion to banks and is spending an additional $40 billion to buy preferred shares in American International Group Inc., the big insurer.

Neel Kashkari runs the Treasury's TARP program, which is unlikely to conduct any auctions to purchase bad loans and other troubled assets -- the original intention of the $700 billion financial-industry rescue plan.

Treasury is expected to widen its program to inject capital into smaller, closely held banks, and is considering expanding its rescue to other nonbank financial institutions, such as insurers and specialty-finance companies. It may also do another round of financing for publicly traded banks. In addition, Treasury is under increasing pressure from Democrats in Congress to open the program to the ailing auto sector.

In another step, U.S. bank regulators could announce guidelines this week designed to encourage U.S. banks to remain active lenders as financial markets are squeezed. Many U.S. companies and individuals have become dependent on bank credit lines as financial markets have tightened up. The regulatory guidelines could also address sensitive issues of bank dividend payments and executive pay.

The fact that Treasury may now require firms to raise money marks a new phase for the government, which had resisted such a move previously. Before launching its $250 billion capital-purchase program last month, Treasury toyed with requiring banks to raise matching funds alongside any government investment, but it thought that might discourage some firms from participating. It also worried that firms would not be able to raise private money in the current market environment.

Instead, Treasury structured its investment in a way that it believed would encourage firms to eventually raise private funds. But Treasury officials now think market conditions may have improved enough that companies could raise private capital.

Some economists advocate requiring companies to raise matching funds, saying it lessens the government's ability to pick winners and losers.

"This idea has the great virtue of incorporating private-sector judgment on the viability and management of these financial firms," said Douglas Elmendorf, a senior fellow with the Brookings Institution and a member of President-elect Barack Obama's transition team.

The World Bank unveiled such an initiative on Tuesday for developing-country banks, in which it will put in $1 for every $2 the banks raise from others.

Initially, in late September, Mr. Paulson asked Congress for authority to purchase $700 billion worth of distressed assets, arguing that banks and other institutions were suffering from the rotten assets clogging their balance sheets.

Figuring out how to purchase assets has proved tricky, in large part because it's difficult to determine how to price such assets, many of which are backed by risky mortgages and carry depressed values. Buying them at market prices would further hurt banks, since the firms would have to write down the value of those assets. But paying above-market prices could potentially hurt taxpayers if the assets never recover in price.

Treasury has no current plans to purchase assets, people familiar with the matter said, and is instead focused on investing directly in firms that provide financing to the broader economy.

On Monday, Treasury and Federal Reserve officials held a phone briefing with Capitol Hill staffers about the government's revised rescue of AIG. While Treasury will buy $40 billion in preferred AIG stock, the Fed will use $50 billion to purchase distressed assets from the company. On the call, Hill staffers asked why the Fed was buying the assets instead of Treasury. Fed staffers said the structure will help insulate taxpayers, according to someone familiar with the call.

Still, some lawmakers are eager to see Treasury focus exclusively on capital injections, rather than asset purchases.

"The more you look at auctions or asset purchases, the more you have the same problem: How do you set the price?" said Sen. Charles Schumer (D., N.Y.).

—Maya Jackson Randall, Michael R. Crittenden and Damian Paletta contributed to this article.

Write to Deborah Solomon at deborah.solomon@wsj.com

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Stephen

Just sent my story to Crittenden.

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