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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Nye Lavalle
Cuomo Wants Ratings Firms
To Go Further With Reforms
By AARON LUCCHETTI
February 7, 2008 12:15 p.m.
New York Attorney General Andrew Cuomo wants ratings firms to go further in their efforts to fix their processes for rating mortgage bonds.

After McGraw-Hill Cos.' Standard & Poor's and Moody's Corp.'s Moody's Investors Service this week put out plans to improve their methodologies for rating mortgage-related bonds and other hard-hit structured finance vehicles, Mr. Cuomo's office will release a statement today calling the moves "window dressing" that fall short of the systemic reform needed to restore investor confidence, according to a person familiar with the matter.

Mr. Cuomo's office is investigating the rating firms to ascertain how culpable they are for assigning ratings that were far too high for various bonds backed by subprime mortgages. Many collateralized debt obligations, or CDO's, that heavily invested in mortgage instruments were also highly rated, but many have now been downgraded, forcing billions in writeoffs at financial firms. The New York office has subpoenaed both S&P and Moody's in an effort to find out how much each knew about flaws in the mortgage products that they rated triple-A. The rating firms have been meeting with representatives of the Attorney General's office in recent weeks.

While critics of the rating firms say they grew too close to the investment banks that sold billions in mortgage bonds, others say they simply made bad judgment calls about the direction of the housing market and relied on incomplete or incorrect data provided by banks and mortgage firms.

Write to Aaron Lucchetti at aaron.lucchetti@wsj.com
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Good post Nye and GREAT subject!

 

This long overlooked and underestimated area is where

hard core crooks thrive and real white collar crime goes

widely unchecked.

 

Let's hear more on this important subject if any of you see it

amplified further on the Internet.

 

 

.

Ed Cage

1804 Cross Bend, Plano Texas 75023

ecagetx@gmail.com

972-596-4363 (Listed)


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I'm thinking, its going to go beyond that, into the three consumer credit reporting companies too.  Indications, showing how servicing companies, like LITTON LOAN created false reporting on thousands in order to prevent them from refinancing.
 
This all falls in place with all three consumer credit reporting agencies in "Partnership" with FAIR ISSAC who creates the scoring.  Contacts in Minneapolis have advised me that FAIR ISSAC is also beginning to "IMPLODE" States like Washington, have filed suits, and others also have been filed, and the AG'S Association is expanding its probe into how "Abuse's" like Litton Loan were used to "Manufactured Forclosure's".
 
Several months ago, someone here asked me about the use of the "Martin Act" in the state of NY.  Well, its here and being used now.  The AG's of many states are now looking at the entire spectrum.  And its still expanding,  Larry Litton, Jr and SR  are now "TOXIC", Their terrorism tactics are being exposed, from NY to CA, MN to TX!   I will be in Houston later this month!

 
A new problem for Litton Loan is arising, and its quite simple. Did Litton Loan transfer hundreds of millions of dollars of mortgages from New Century to that German Bank, after New Century's Bankruptcy? And who at Litton Loan is back dating documents being filed in foreclosures?  Only the General Counsel's of both Litton Loan and CBASS know!!!!  
 
 
 
 
 
 
 
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Where is that Tillwicz Report from Fitch's again?

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Good point on the credit reporting Gary!

 

And let's not forget THE APPRASIERS.

 

Where would mortgage servicing fraud be without them?
 
Ed Cage

ecagetx@gmail.com

 
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