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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Help is on the way?

 

 http://biz.yahoo.com/ap/071023/countrywide_workouts.html?.v=3

Countrywide to Modify $16B in Loans
Tuesday October 23, 11:24 am ET

By Alex Veiga, AP Business Writer

Countrywide Launches Program to Refinance or Modify Mortgages

LOS ANGELES (AP) -- Countrywide Financial Corp., the nation's largest mortgage lender, said Tuesday it will begin calling borrowers to offer refinancing or modifications on $16 billion in loans whose interest rate is set to adjust by the end of 2008. Its shares fell more than 4 percent.

Countrywide has been under fire since early July -- it has had difficulties with loan financing, its chief executive has been criticized for selling hundreds of millions of dollars in stock and it faces pressure from the government to help keep people from losing their homes.

"Unprecedented times call for unprecedented remedies," Countrywide President and Chief Operating Officer David Sambol said in a statement. "We are determined to assist borrowers who have the willingness and wherewithal to remain in their homes, but need a little help to do it."

The Calabasas, Calif.-based company said it would reach out to borrowers who are current on their loans but are facing an imminent rate reset to discuss options. Countrywide said it would refinance about $10 billion in loans and modify another $4 billion.

It also plans to contact borrowers of some $2.2 billion who are late on their loans and having trouble paying because of a recent rate reset.

In total Countrywide's plan would reach out to about 82,000 borrowers for some kind of relief.

Subprime mortgages -- those made to people with poor credit histories -- have become a problem for the global economy. As people who took out subprime mortgages from 2005 through the first half of 2007 defaulted at increasing rates, bonds backed by those mortgages began to lose value.

More than 50 mortgage lenders have gone out of business this year. A seizure in the global credit markets precipitated by the mortgage crunch has led a consortium of banks to propose a fund of up to $100 billion to buy distressed assets.

So far this year, Countrywide has completed about 20,000 loan modifications -- a figure that represents less than 5 percent of the more than 500,000 loans the lender reports were behind in payments as of last month.

The figure amounts to about 24 percent of the roughly 82,000 loans the company said were in foreclosure as of September.

Still, the company notes that its efforts to help troubled borrowers through refinancing, loan modification, repayment plans and other loan workouts, have kept some 40,000 borrowers from losing their homes.

Under the initiative announced Tuesday, Countrywide plans to offer an estimated 52,000 borrowers with subprime loans refinancing into prime rate loans or federal assistance mortgage loans insured by the Federal Housing Administration.

The company estimates some 10,000 borrowers with subprime loans who are now behind on their payments due to their mortgage interest rate resetting will be offered rate reductions by the end of the year.

Countrywide shares fell 66 cents, or 4.2 percent, to $15.02 in morning trading Tuesday. The shares have traded in a 52-week range of $14.40 to $45.26.

Countrywide Financial: http://my.countrywide.com/ 

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I think this is being done because of the SEC investigation on the CEO.  I just wonder why two directors resigned in April, after it became known that the CEO was buy and selling hundreds of thousands of shares every week from near the first of the year, I guess he knew what was going to happen.

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Joe B
Help On the way-

     I would like to believe that there is real help behind the headlines. However, I wonder what people will have to give up to get this help. You suppose that you will have to sign a release that will require the borrower to agree to never sue Countrywide for anything ever? Even if CW was at fault, and even if there was fraud involved? You think the terms will actually be favorable for the borrower?

     Please see my post that has been pinned about people getting offers to modify their loans. It is conspicuously quiet... It is titled: Anybody get an offer to modify their loan??? I invite CW borrowers to tell about any of their offers here. It will be fun to track!

     I hope CW is serious about helping people, but I suspect it is more about helping themselves and capturing some positive press and some good will. It is what damage control is all about; show a token amount of support, get some headlines, and move on. Especially when you consider Mozilla's role. I suspect you will hear how he is personally spearheading these programs to "help" people. Forget the fact that he has enriched himself at their expense to begin with... he is 'reformed' and is really, really sorry, and wants to help. really, just trust him!! Just don't ask him to give up his $500 Million dollars to 'help!!"

     Watch, I promise that there will be headlines within the next 30 to 60 days that have quotes from real people that have been 'helped' by these programs... and they will help some. However, the truth is likely to be VERY far from the headlines. It's a story no one will talk about!

     I hope I am wrong, but CW's history is hard to ignore.

JB
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me three

Countrywide has offered a loan mod but so far the terms haven't been any good. They haven't offered damages for the crap they put me thru and they have insisted on non-disclosure. Balls to that.

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Joe B
Me 3-

     Would you consider putting a summary of your offer, as well as current loan parameters in my post about modifying loans Anybody get an offer to modify their loan???  I don't want you to disclose anything personal. Perhaps something like:

Current 5/1 ARM, 7 years in, and current rate 9%, adjusting every 6 months at LIBOR plus 3.

Offer: 30 year fixed, 8%, 6K in closing costs, and release of liability for any potential violations, and non-disclosure, etc...

     I would just like to see how these offers are really playing out. Thanks!!!

JB
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No way

 From the Countrywide home page:  http://about.countrywide.com/about/atemplate4.aspx

 

Countrywide Announces a $16 Billion

Comprehensive Home Preservation Program

-- Enhanced focus on rate resets will benefit more than 80,000 borrowers--

 

CALABASAS October 23, 2007 Countrywide Financial Corporation (NYSE: CFC) today announced a comprehensive home preservation program to reach out to borrowers at-risk of default. Countrywide will launch an outbound calling initiative to refinance or modify up to $16 billion of Countrywide loans for borrowers who are facing an adjustable-rate mortgage reset through the end of 2008.

 

"Countrywide is committed to helping its customers sustain homeownership," said David Sambol, President and Chief Operating Officer of Countrywide. "Unprecedented times call for unprecedented remedies. We are determined to assist borrowers who have the willingness and wherewithal to remain in their homes, but need a little help to do it."

"Countrywide believes that none of our subprime borrowers that have demonstrated the ability to make payments should lose their home to foreclosure solely as a result of a rate reset," said Sambol. "This is yet another step in our continuing effort to identify and improve existing programs that assist our customers."

 

Countrywide will offer tailored solutions to its borrowers to proactively address the rising foreclosure rate. Dedicated teams of Countrywide specialists will contact customers who are current in their payments and approaching a rate reset to ascertain the borrowers' circumstances and advise them about refinance and home preservation options. Countrywide's new and enhanced programs include:

 

Refinance Program

 

         For Countrywide borrowers currently in a subprime loan with a strong payment history, a special refinance unit has been created to contact approximately 52,000 borrowers to offer refinance options. The company has identified and will work to refinance approximately $10 billion of mortgages. For this group, Countrywide will offer borrowers options to refinance into prime or FHA loans. For those with credit issues, Countrywide will offer Fannie Mae or Freddie Mac's expanded criteria programs. Countrywide has a strong track record of successfully transitioning borrowers from subprime products to prime loans. Year-to-date, more than 31,000 borrowers have refinanced to prime fixed rate loans totaling more than $5 billion.

 

Modification Program

 

        Countrywide is working to identify and contact prime and subprime borrowers who are current but unable to qualify for a refinance and are likely to have difficulty affording an upcoming reset. Countrywide will supplement its early notification letter to borrowers by calling no later than three months prior to the reset to determine their financial circumstances and develop affordable solutions. As a result of this initiative, Countrywide will successfully modify $4.0 billion in loans for approximately 20,000 borrowers in an existing adjustable rate mortgage through the end of 2008.

 

Additionally, for subprime borrowers who are currently delinquent and are experiencing financial difficulties as a result of a recent reset, Countrywide has implemented a simplified loan modification process. Countrywide is in the process of sending letters to these borrowers offering a pre-determined, pre-approved rate reduction. It is anticipated that 10,000 additional borrowers, totaling $2.2 billion, will receive modifications through this initiative by year-end.

 

Home Preservation Efforts

 

So far this year, Countrywide's existing home preservation efforts have helped more than 40,000 borrowers stay in their homes including the completion of 20,000 loan modifications. Countrywide's comprehensive efforts help borrowers facing financing difficulty. These include:

 

         2,700 highly-trained home retention specialists that work with delinquent borrowers by providing payment alternatives in order to help them retain their homes.

 

         Countrywide borrowers with an impending rate reset are sent a letter 180, 90 and 45 days prior to the rate increase to ensure that borrowers understand their options.

 

         Outreach to distressed homeowners in their own communities by setting up face-to-face meetings through various means; hosting seminars around the country to help borrowers avoid foreclosure; participating in foreclosure prevention workshops, teaching them about possible foreclosure scams; and offering loan workouts on-site.

 

         Working with non-profit and community groups across the country to create

grassroots efforts to contact and counsel distressed borrowers, particularly in communities that are experiencing unusually high foreclosure rates.

 

Countrywide encourages consumers who face an increase in their mortgage payment or fear falling behind on their payments for any reason to call the Countrywide home retention team at 800-669-6650.

 

I find this hard to believe that they actually did that: 

 

“So far this year, Countrywide's existing home preservation efforts have helped more than 40,000 borrowers stay in their homes including the completion of 20,000 loan modifications. Countrywide's comprehensive efforts help borrowers facing financing difficulty.”

 

I believe this is just another attempt to look “good” in public. Maybe their CEO’s should spend some time reading through the complaints posted all over the Internet instead of playing “GOLF”.

 

As always – this is my own opinion! 

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Alex Veiga

AVeiga@ap.org
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