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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Jokey Smurf
Note
Sprinkled with artistic license ;-)

Higher delinquencies, of course, fall on the shoulders of servicing organizations - organizations that have already refined their business model to remain profitable in an era of razor-thin margins, i.e., BOGUS ADDED FEES. As default servicing assumes a more prominent role in servicers’ shops, effective loan administration is going to grow even more expensive, and margins will get thinner.

Forget costs
Nonetheless, Litton says, “This is not the environment to start worrying about your costs. Now we have to get a little bit more creative in terms of how we try to fix these loans, and screw the homeowner."

At Litton Loan Servicing, loan modifications remain the primary loss mitigation option. If borrowers absolutely cannot stay current, due to the manufacturing of DEFAULT process, the company brings short sales to the table. Overall, Litton notes, the loss mitigation toolbox has been cracked wide open to serve borrowers, protect collateral and secure investors’ interests.

In a VERY MANIPULATIVE way, loss mitigation must begin the moment a loan is loaded into the portfolio.  This process promises unlimited moola from the GIT GO, he says. All servicers are familiar with the welcome call or letter, you know, the letter that many homeowners NEVER receive, har har, chuckle, snort, cough.  It has been common to simply stick a letter in the mail or leave a message on a borrower’s answering machine, don't mind the curse words, LOL, it's all in fun. You trailer trash homeowners deserve to be treated like crap.
Today, that will not suffice, particularly in the nonprime space. If Litton Loan Servicing cannot confirm receipt of the welcome package, but we can, and do lose your QWR letters, and your payoff quotes on a daily basis, the company will routinely send a warm body, in the industry called a, "Bone Buster", or "Thug" out to the property to pay a visit. This strategy ensures that borrowers know the company and keeps lines of communication open, and we can  be sure to bleed the homeowner dry, adding fee upon fraudulent fee to their loan.

Holistic servicing models have their limits in today’s environment, Litton comments. Performing every servicing function out of a centralized location has been efficient in the past, but increased delinquencies warrant greater precision. In certain markets, particularly in the Midwest, Litton Loan Servicing personnel or service partners are in the field to bring loss mitigation directly to borrowers. Titanium Solutions are well known to be our partners in crime.

Underlying every loss mitigation decision is a concrete boot on every unsuspecting homeowner's feet assessment of an asset’s net present value (NPV). Because real estate markets have slowed and values have slipped in many areas, this metric is critical.

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