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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For Immediate Release Contact: April 9, 2008 Alys Cohen, NCLC, 202-452-6252 x102



During the greatest foreclosure crisis since the Great Depression, the Federal Reserve

Board ("Board") is proposing rules that surrender key consumer protections in order to

preserve market interests. The Federal Reserve Board’s proposed rules regarding unfair

and deceptive practices in the mortgage market will not stop future abuses, several

consumer groups said yesterday in almost 100 pages of comments filed with the Board.

The National Consumer Law Center filed the comments, on behalf of its low income

clients, along with Consumer Action, Consumer Federation of America, Consumers

Union, Leadership Conference on Civil Rights, National Association of Consumer,

Advocates, National Fair Housing Alliance, and the Empire Justice Center.

“The stakes are high and the proposal does not measure up," said Alys Cohen, an

attorney with NCLC. "The Fed is the only federal agency with authority to pass

comprehensive rules to change the market, but the proposal falls short and leaves

consumers without protections against powerful industry forces," she said. The

comments point out that the Board's approach is based on the flawed concept that access

to credit – even predatory, destructive credit – should be the guiding principle. The

comments ask the Board to significantly strengthen the rules so they can change market

practices and protect consumers from future abuses.

The Board issued the proposed rules in January and all comments were due yesterday.

A summary of the consumer groups’ comments as well as the full comments are at

# # #

NCLC is a non-profit organization specializing in consumer issues on behalf of low income

people. NCLC works with thousands of legal services, government and private attorneys,

as well as organizations, who represent low-income and elderly individuals on consumer

issues. NCLC submitted comments to the IRS on behalf of its low-income clients.

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