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

Bear Stearns' EMC unit receives FTC notice
Reuters, Tuesday April 1 2008


NEW YORK, April 1 (Reuters) - Bear Stearns Cos' EMC Mortgage Corp unit has received a notice from U.S. regulators that it may have violated laws regarding its servicing activities, a Tuesday filing shows.

The Federal Trade Commission staff believes EMC and Bear Stearns violated a number of federal consumer protection statutes, according to a filing by a Bear affiliate with the U.S. Securities and Exchange Commission.
The staff delivered a draft complaint and draft consent order asking for changes in business practices and unspecified monetary payments, according to the filing. EMC expects to engage in settlement talks before a formal complaint is filed, the filing shows.

Bear, once the fifth-largest U.S. investment bank, faced a run on the bank in March and was forced to sell itself to JPMorgan Chase & Co.

(Reporting by Dan Wilchins)
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arkygirl
We've been here before with the FTC and Fairbanks.

There will be fines (greedily sucked up by the government), wrist slaps, colorful charts, graphs and maps followed by lap dances for all. Maybe a "best practices" list that will be summarily ignored by all concerned.

All the people who were defrauded and cast out into the wilderness by EMC will still be homeless. Some of the money that was stolen from them will go to pay fines and EMC will keep on keepin' on. "They" like to make a lot of noise while not curing the real problem.

I read a piece yesterday stating that there is way to much housing inventory in the US which is depressing prices and that much of the overstock should be bulldozed.

My suggestion is that one home be given, free of charge, to each family who can prove fraud in their loans. Preferably a home comparable to the one they were cheated out of.  If there are still too many houses left vacant they should be given to anyone who wants them. If the home recipients are dumb enough to run out and get weird loans, HELOCs and second mortgages, they will NOT be helped or bailed out in any way. All recipients will be liable to pay their local and state taxes.

The bulldozers should be used to raze Wall Street and the Federal Reserve.

Problem solved permanently. No more overstock and no more artificial bubbles. This plan would actually save taxpayers billions of dollars in the long run over "saving" the greed bags who created this mess.

I am not holding my breath on this one.



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Nye Lavalle
No, but I will be holding my nose for the stench that will emanate from the rotted corpse of a dead Bear!
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Just speculation but pehaps the FTC will do better with EMC than Fairbanks.

They settled way too low and did not enforce their own drafted "Best Practices".

Instead of setting industry standards it turns out nobody paid any attention to it and kept up the same business practices or at the very least fined them
severely for violating the settlement agreement.

The class action suit lawyers did such a sweet deal on attorney fees, they
forgot to be realistic about what borrowers had lost.

They should have helped borrowers when Fairbanks continued to violate the settlement agreement.

Bring them back to court and get sanctions.  Judges don't like it when you
violate settlement agreements.

I hope the investigation into EMC results in proper reimbursement to borrowers even if it buries them financially. 

When outright fraud is committed, the penalty should be very tough if
it is intended to send the message, "Don't even try it."

Instead of Best Practices we get Worst Practices.

It needs to stop and go away.  All these years that borrowers have been
successfully screwed is sickening.

Dee
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Blossom
How slowly FTC wheels turn! or maybe don't turn at all but just cast a blind eye!  How many homeowners do you suppose EMC has thrown under the bus since 12/05? ......not to mention those EMC steamrolled before?

FTC Probes Bear Stearns Mortgage Unit

12/31/05 - 07:04 PM EST

 

A Bear Stearns  unit is coming under government scrutiny in a probe of residential lending to risky borrowers.

The investment bank's EMC Mortgage unit received a request for documents from the Federal Trade Commission to see whether it violated consumer protection laws, according to The Associated Press.

The request follows a Dec. 8 2005 resolution by the FTC authorizing investigations into subprime lenders, loan servicers and brokers. Bear Stearns disclosed the inquiry in a regulatory filing by a mortgage trust it set up. It said it's cooperating with the investigation.

http://www.thestreet.com/_tscrss/stocks/banking/10259702.html

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-K 
Filed 3/31/08
 
Item 1117 of Regulation AB. Legal Proceedings.
The sponsor has received a civil investigative demand (CID), from the Federal Trade Commission (FTC), seeking documents and data relating to the sponsor's business and servicing practices. The CID was issued pursuant to a December 8, 2005 resolution of the FTC authorizing non-public investigations of various unnamed subprime lenders, loan servicers and loan brokers to determine whether there have been violations of certain consumer protections laws. The sponsor is cooperating with the FTC's inquiry.

On March 10, 2008, EMC received notice from the Staff of the FTC that the Staff believed EMC and its parent, The Bear Stearns Companies, Inc. had violated a number of Federal consumer protection statutes in connection with its servicing activities.  With the notice, the Staff delivered a draft complaint and draft consent order seeking certain injunctive relief regarding business practices and unspecified monetary redress.  The Staff also indicated that it had been authorized to offer an opportunity to resolve the matter though consent negotiations before it seeks approval from the FTC to proceed with the filing of a complaint.  EMC expects to engage in such discussions with the Staff.
 
What is so interesting about this filing is that it has so many fingerprints on it, among others:
 
JPMorgan Chase & Co.  (of course)
LaSalle Bank N.A.
PricewaterhouseCoopers LLP
Wells Fargo Bank, NA
American Security Insurance Company
Standard Guaranty Insurance Company and TrackSure Insurance Agency, Inc. (formerly, "Safeco Financial Institution Solutions Inc.")
Fidelity National Information Services, Inc
FIS Tax Services,  LandAmerica Tax and Flood Services, Inc.  Deloitte & Touche LLP
Grant Thornton LLP
&
KPMG LLP of New Century Financial fallout fame.
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JM

They're all in it together for sure.

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Remember when!!! For all the first timers this did happen... Just for Manny... Look Read and Learn... We have all been here for the long haul..

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Chuck

You must then be taking particular delight that the FTC is getting out front to help distressed borrowers AVOID being victimized by con artists selling loan securitization audits!

 

Funny, though.  I do not see any mention of a Malibu within this thread from 2008.  I guess you were holding back these past four years and waiting until Neil Garfield was exposed by the FTC before entering the conversation.

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