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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A Pittance !

Countrywide Settles Lending Suit in Pennsylvania  

Published: July 16, 2008

Countrywide Home Loans has agreed to pay $325,000 to the Chapter 13 bankruptcy trustee in Pittsburgh, settling a matter that accused the lender of abusive practices in almost 300 mortgage loans overseen by the court.

The settlement, which has been filed with the court and must be approved by the federal judge overseeing it, arose out of motions filed last October by Ronda J. Winnecour, the Chapter 13 trustee for the district of Western Pennsylvania.

Saying that the company had lost or destroyed more than $500,000 in checks paid by homeowners in foreclosure from December 2005 to April 2007, Ms. Winnecour asked the bankruptcy court to impose sanctions against Countrywide, the nation’s largest loan servicer.

Ms. Winnecour said she was concerned that Countrywide had been charging borrowers late fees and legal costs even though it was responsible for misplacing or destroying their checks.

“The integrity of the bankruptcy process is threatened when a single creditor dishonors its obligation to provide a truthful and accurate account of the funds it has received,” Ms. Winnecour said in requesting sanctions.

Countrywide, which was acquired by Bank of America this month, disputed Ms. Winnecour’s allegations about the lost checks, saying the company had no record of having received the payments which the trustee said had been sent. But on June 18, Countrywide settled the case with her office.

David Schrempf, a spokesman for Ms. Winnecour, declined to comment on the settlement pending its approval by Thomas P. Agresti, United States bankruptcy judge for the Western District of Pennsylvania.

A Bank of America spokesman also declined to comment. Under the terms of the settlement, Countrywide will pay the trustee’s office $325,000 to cover its costs of prosecuting the troubled borrowers’ cases. The settlement also requires Countrywide to reconcile the amounts it contended the roughly 300 borrowers owed with the figures Ms. Winnecour’s office has compiled.

If there are discrepancies, Countrywide will either adjust its records to be consistent with the trustee’s or provide evidence showing why Ms. Winnecour’s numbers are inaccurate, the settlement states.

Questionable practices by loan servicers have been under investigation by the Office of the United States Trustee, a division of the Justice Department that monitors the bankruptcy system, since October. It said then that it would move against mortgage servicing companies that file false or inaccurate claims, assess unreasonable fees or fail to account properly for loan payments after a bankruptcy has been discharged.

Last March, the United States Trustee sued Countrywide over a 2005 bankruptcy filing involving John Wayne Atchley and Robin April Atchley, homeowners in Waleska, Ga. Countrywide serviced their loan and levied improper fees on the borrowers; the company also claimed that the Atchleys were behind on their mortgage on two occasions when they were current on the loan, the trustee’s suit contended.

As more borrowers enter foreclosure, the fees charged by loan servicers during the process are coming under increased scrutiny. Countrywide generated $285 million in late fees last year, up 20 percent from 2005. Late fees accounted for 7.5 percent of Countrywide’s servicing revenue last year.

One aspect of the settlement between Countrywide and the trustee’s office involves improper demands for escrow made by the company to borrowers Rodney and Lori Thompson. The couple disputed the amounts levied by Countrywide to cover property taxes and insurance.

Under the agreement, the lender will eliminate the amounts it said are owed, waive all future escrow requirements and pay their lawyer $7,000 to settle claims the couple may have against Countrywide relating to the escrow matter.

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I Know
SOMEONE MUST look into the REASONING behind fraudulently stating that a borrower is in DEFAULT.

Who reaps the rewards?

INSURANCE FRAUD is STILL a CRIME here in America, even if it is a SERVICER who commits the CRIME.

The portfolios ARE INSURED.

At what point does the insurance on a portfolio kick in?

Who gets PAID???????

Just a wonder...
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Nye Lavalle
Not only a pittance, but pitiful!
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Connect the Dots
Imperative that all re-read Katherine Porters abstract on foreclosures. ALL SERVICERS ARE DOING THIS EXACT SAME THING.

Moreover, there is no difference between bankruptcy cases and other foreclosures as they all follow the GSE Business Model which places servicers pecuniary interest in fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees fees, fees, fees, fees fees, fees, fees, fees,fees, fees, fees, fees,fees, fees, fees, fees . Read the servicers annual reports IT'S ALL ABOUT THE FEES!!!!!!!!!THE SERVICER DOES NOT GIVE A DAMN ABOUT THE PRINCIPLE-THAT IS THE INVESTORS PROBLEM. ALL THE SERVICER WANTS IS THE FEES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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AMEN

Quote:

Countrywide generated $285 million in late fees last year, up 20 percent from 2005. Late fees accounted for 7.5 percent of Countrywide’s servicing revenue last year.

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Moose
The truly stupid part of this on Countrywide's part is trying to scam who they tried to scam - a Federal court.

What isn't being answered yet is how many of those bankruptcy filings were because of Countrywide's default-manufacturing tactics in the first place.

Moose


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4 justice now
Moose:

Good point!

Although, I doubt we will ever get answer to that question, unless we some how obtain it on our own.

R,,

4J
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Check who agreed to the settlement, and see what law firm they were from, and connect the dots! 
 
Where are the sanctions? where is the restitution? No justice again, just pay a few bucks for the show and go on!  The trustee is the only one getting paid here!  
 
There are damn few courts that are as blind to this settlement, the Judge should not have allowed it!
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H Gosh
Ahh, Gary, Pennsylvania is the "pay to play" state.  Heck, we've just indicted 12 people from the Democratic Caucus for interfering in the Nader Presidential campaign, and there are more to come.  Pennsylvania gives gambling licenses to known mob figures; they hold "secret" legislative sessions at 1:00 in the morning and pass bills contrary to any other law of the land.  They have the State Attorney General convicted of a federal crime, and upon release restore his license to practice law, and practice he does, defending all types of developers who violate federal law.  We have an engineer who defrauded the Department of Defense, served federal jail time, and upon release, a County Commissioner appears before the licensing board defending the "good character" of the criminal.  What else would you expect out of Pennsylvania?
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