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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Fitch: Outlook Negative for U.S. RMBS Servicer Sector Based on Foreclosure Issues
 

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned a Negative Outlook for the entire U.S. Residential Mortgage Servicer ratings sector on increased concerns surrounding alleged procedural defects in the judicial foreclosure process.

'Risks to servicers include cost to research and remediate any errors, additional fees and resources, potential penalties and reputational risk,' said Diane Pendley, Managing Director and head of U.S. RMBS Operational Risk for Fitch.

This industry-wide issue will cause all servicers to be under increased scrutiny from a wide range of state and federal regulators, state attorneys general, and GSE's. All servicers will be affected, even those fully in compliance with all foreclosure rules and regulations. This is due to the increased amount of time and manpower it will take to properly address the much higher level of oversight and inquiries that are received, as well as the anticipated additional court delays.

Read more here:
 
Like so many, for the longest time I didn't have a clue as to how servicers were rated.  It always boggled my mind to see the worst fraudsters receiving highest ratings.  After reading this recent WAPO piece and the lights suddenly went on.  People really need to know how ratings agencies evaluate servicers.
 
For foreclosure processors hired by mortgage lenders, speed equaled money
"Speed is also rewarded by the nation's credit-rating agencies, which give higher grades to mortgage service firms that accelerate the foreclosure process and generally hand out lower grades to those who hold onto delinquent loans. A Fitch Ratings manual calls the speed of foreclosures "the key driver in the servicer rating," according to a report by the National Consumer Law Center."
 
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Moose
Blossom wrote:
Fitch: Outlook Negative for U.S. RMBS Servicer Sector Based on Foreclosure Issues
 

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned a Negative Outlook for the entire U.S. Residential Mortgage Servicer ratings sector on increased concerns surrounding alleged procedural defects in the judicial foreclosure process.

'Risks to servicers include cost to research and remediate any errors, additional fees and resources, potential penalties and reputational risk,' said Diane Pendley, Managing Director and head of U.S. RMBS Operational Risk for Fitch.

LOL!  Reputational risk?

Moose


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    I suppose an excellent color photocopier which converts black and white
copies to color photocopies is the key to high ratings!
    We all need to practice using a microscope and study real blue ink signatures and compare them with color copy signatures! Hint: Its all in the
dots! Also, break out your clean, original, yellow magic markers! You too can
learn to be "Dick Tracy".
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The Equitable One
What purpose will a yellow magic marker serve?
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To answer your question about a clean,original, yellow magic marker:
    1) Sign your name in blue ink on a piece of paper.
    2) Next make a color photocopy of it at a print shop.
    3) Test both with the solvent in the yellow magic marker.
    4) The original blue ink copy will smudge proving the presence of
        blue ink.
    5) The color photocopy will not smudge because there is no blue
        ink present.
    6) For more fun, look at both under a microscope. You will see they
        are easy to tell apart. Blue ink looks one way, the photocopy looks
        completely different with multicolored dots.
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History test:  Diane Pendley - anyone here remember her?
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This maybe. . .
Diane Pendley five years ago after USA/Curry:
(It appears they hit the snooze button and went back to sleep)

THE ONE CAUTIONARY PHRASE THAT KEEPS COMING UP IN THE WAKE OF the huge influx of new servicing during the past two years is: "wake-up call." [??] Not the kind that deep-sleeping hotel guests rely on to rise early, but the kind that smart-thinking mortgage companies heed when there is trouble all around them. [??] Two years after the nonprime servicing company Fairbanks Capital Corporation, Salt Lake City, ran afoul of the Federal Trade Commission (FTC) for certain servicing practices, and a year after Ocwen Federal Bank, West Palm Beach, Florida, also was cited for transgressions by the Office of Thrift Supervision (OTS), vigilance has spread widely [??]

"The industry, as a whole, has definitely taken this as a true wake-up call, which is a good thing," says Diane Pendley, managing director, operational risk, structured finance, at Fitch Ratings, New York. Fitch, along with Standard & Poor's (S & P) and Moody's Investors Service, both based in New York, are the top three credit-rating agencies in the domestic and international fixed-income securities markets; as such, they have come to play increasingly important roles in regulatory affairs. [??] These, and other, analysts repeatedly insist that the Fairbanks and Ocwen cases were not intended to put other nonprime--or any--servicing companies on notice, yet more than a few have come to view these rulings as "fenceposts," clearly delineating what may (not) be done. [??] In some respects, that is a healthy result. [??] "Every servicer is best served by carefully reviewing these cases," Pendley advises," and establishing controls to avoid similar situations." At base, she says, "servicers should look at their practices and ask themselves: How would regulators look at what we're doing?"

Fitch and others with stakes in the game want servicers to keep the pressure on their processes and staff, according to Pendley, "so that good results continue for both the consumer and the investors. There's no reason to believe it won't," she adds optimistically. 
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