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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arkygirl

Tell me again that this fraud "wasn't planned"....HGosh told us all about REITs a loong time ago. HGosh was right!



Countrywide saw real estate market collapse coming, says Dallas-based MortgageDaily.com


— According to a conference call made a year and a half ago, Countrywide Financial Corp. foresaw the demise of companies like Ameriquest Mortgage Co., which is closing down, and bankrupt New Century Financial Corp., says Dallas-based mortgage market watch website MortgageDaily.com.

Commenting on the low subprime margins in the call, which was reviewed in February 2006, Countrywide said, "It's the Ameriquests and New Centuries of the world" as well as "companies that have a REIT."

Too bad no one listens to massive multinational corporations anymore

"Too bad no one listens to massive multinational corporations anymore"

(Photo not provided by Countrywide)

"They're dumping the losses into the REIT and then securitizing the stuff they have a profit in," Countrywide continued. "No question the key players there [were] Ameriquest and New Century."

In what turned out to be quite an understatement, Countrywide, which got a $2 billion capital boost from Bank of America last month, forecasted some consolidation would take place later in 2006, with "the weaker ones folding."

New Century filed for voluntary chapter 11 bankruptcy protection on April 2 and subsequently liquidated. ACC Capital Holdings, the parent of Ameriquest, sold wholesale subsidiary Argent Mortgage Co. to Citi on Saturday, Citi announced. An ACC spokesman confirmed that Ameriquest would shut down.

Other subprime operators struggling to remain viable include Option One Mortgage Corp., whose parent company reported in an earnings announcement last week that it is trying to speed the sale of the subprime lender by possibly winding down the origination business and selling just the servicing platform.

Accredited Home Lenders Holding Co. has temporarily halted all new business and is in litigation trying to force Lone Star Fund V, L.P., to acquire it at more than $15 per share. Without the merger, Accredited's survival is in doubt.

Founded in 1998, MortgageDaily.com is the dominant online news source for the mortgage industry. Around one million mortgage business news pages are viewed monthly at MortgageDaily.com and its affiliate publications.

Source: Mortgagedaily.com

http://www.pegasusnews.com/news/2007/sep/05/countrywide-saw-real-estate-market-collapse-coming/


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Ditto to your statement Arky Girl,

"HGosh told us all about REITs a loong time ago. HGosh was right! "

And here is why:

To qualify as a REIT, and gain the advantages of being a pass-through entity (which is free from taxation at the corporate level), an organization must comply with the following Internal Revenue Code provisions:

http://www.streetauthority.com/terms/r/reits.asp

PS I am still around just quiet!

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still watching
H. Gosh told all of us about the whole deal years ago, but nobody wanted to listen.

H. Gosh is probably the most informed person on this Forum..it's time to go back and read the postings that were written and you will see everything H. Gosh predicted is now coming to light!!

Hat's off to H. Gosh
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arkygirl
Well, SOMEBODY listened. I listened. I learned. Other people did, too. It was a headache-producing topic then and it still is today. It is a lot to try to digest. And we still have to learn about the contamination of REMICs; I am sure that will come around soon. But knowing about the fraud and how it is being committed is a far cry from being able to get those in power to listen and respond to it. It will eventually come out that those "powers" were making money from this scam, too. Kind of dries up the will to regulate when it might impede their own incomes, eh? Of course, the doo-doo has hit the fan at a high rate of speed now and those former "winners" are now losers along with so many homeowners.

I would bet a buffalo nickel that some of that D.C. August vacation time was spent checking portfolios and net worths and the "powers" are PO'd to high heaven right now. We will hear a lot of racket from them in the near future.

(I admire HGosh (oops H. Gosh) a lot. Wonder where H. Gosh is now. Anyone know?)

But we have a lot of new people here who were not around when that discussion was taking place so it is good to bring these things up as a "new topic" now and again.

Mostly I have learned that the toxic slime dripped from the hands of lenders and servicers and tainted everything. Every investment vehicle available to RE out there should be under a recall as extremely dangerous and subject to exploding any second. The numbers were phony and the people working the scam are full of baloney. They knew what they were doing all along; they simply didn't care whom they harmed as long as the "long green" wound up in their own pockets.

This list would encompass appraisers who "met the numbers" the lenders demanded no matter how inflated and outrageous to get their fee, brokers and lenders who put people with good credit into bad loans because the commissions were larger and lied like rugs to unsophisticated borrowers to do it, servicers who got rich playing "hide the payment" or the "you need insurance" game while racking up fake lates, legal fees and interest fees, scummy lawyers who pretended to be a law firm when they were just a collection agency charging borrowers $95.00 a pop for their fake letters, Wall Street trapeze artists who turned crap into gold with their CDOs and other assorted tricks, judges on all levels for refusing to look at good evidence held by plaintiffs and ruling for MERS, servicers, and other crooks because they were too lazy or willfully blind to do their jobs properly, and the Federal government as a whole for putting on blindfolds and wearing ear plugs, drawing their profits, and allowing the collective rape of American citizens right under their eyes, noses and ears.

*WHEW*  **GASP** My former English teacher just spun in her grave over that run-on sentence, lol.

So, still watching, all of H.Gosh's efforts were not in vain. H. Gosh opened a lot of eyes to "the deal", but all of us together were unable to make much of a dent in the scam because that old music was still playing. Now the band has gone home and the losers on Wall Street are squealing like the pigmen they are. Too bad....NOT!

Hey, Lady Di, good to "see" you again. Good post that you added explaining the REITs for the newbies. . It is always best to know one's enemies so as to better avoid them next time.


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