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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Hi was told that there a law that says any item a bank/lender/morgager does with a homeowner, every cost has to be related to the cost of the loan.

Anything on the closing statement that is not accounted for or not on the closing statement but is onthe loan, is considered a profit for the lender.

In other words, it is the same as interest so if you got a loan that you think is 10 %  but the lender or mortgage broker stuck like an extra $10K on there then that is their benefit not the homeowner so its considered interest paid up front.

Do you all know what this called.  I been trying to research but don't know what it is.

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Nye Lavalle
Examine TILA and REG Z
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Knows About Reg Z
Nye is correct:

TILA = Truth In Lending Act
Reg Z = Federal Reserve Board Regulation Z

The Federal Reserve Board is generally charged with TILA compliance and enforcement.  See, for example: and


Just Google these terms and you will find a wealth of useful information.

TILA has been around for decades.  The Fed was asleep at the wheel in the sub-prime mortgage bubble runup.

You have certain rights under TILA and can actually have your mortgage modified to conform to the original disclosures made in the TIL (APR) Disclosure made concurrent with your loan closing.  When you enter into a loan modification with almost any lender, a standard term in such modification agreement is your waiver of any past misdeeds by the originating lender and agreement thereby to foregive any TILA violations.  This is one reason that unscrupulous mortgage servicerslike to lead you through at least one loan modification BEFORE initiating foreclosure.  You will have already waived all of your best defenses once foreclosure has been initiated.
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Yes, yes, yes, and yes again about wanting to modify loan before foreclosing.

Our lender even went so far as to offer to to do this and that and if we agreed then they wouldn't fight our bankruptcy plan.

Well let me tell you.  The so called modification would mean a higher interest rate, and we're supposed to go, woooo hooo! because it was a fixed rate.

Well, the deal breaker was the real little find print burried at the bottom:  

"waive any legal defenses to repayment of the note"

Not sure what it means but I figure it can't be good.
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The Equitable One
I've seen "hold harmless" language in Loan Mod offers that essential put the borrower in a completely powerless position. It expresses the pretender lender will be held harmless for any past bad deeds AND any future bad deeds.

Seems to say "OK, we can do whatever we want and you agree to let us do it."

Pure folly to enter into contract under those terms.

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Yeah, I saw that too in the offer I got and when I asked they said that's just normal language, no big deal.

Can you tell me what means in lay terms?  I don't understand about repayment of the note.  If I've already been paying, whey... well I don't understand.



Barbie wrote:

"waive any legal defenses to repayment of the note"

Not sure what it means but I figure it can't be good.
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