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.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
Notable quotes:

"Yet the system itself bears blame. The evolution of mortgages into a securities instrument turned loan origination into a competition. Caution gave way to a push for speed and volume. Embroiled in an all-out war for market share, issuers reduced barriers to credit, for example, by offering so-called "stated-income" loans, which require no proof of income. "The stated-income loan deserves the nickname used by many in the industry, the 'liar's loan,' " says the Mortgage Asset Research Institute, which works with lenders to prevent fraud. A recent review of a sampling of about 100 stated-income loans revealed that almost 60% of the stated amounts were exaggerated by more than 50%, MARI says."

~~~~~~~~~~~~~~~~~~~~~~~~~~~

"But some defense attorneys went on the offensive and attacked lenders for failing to guard against fraud. Particularly illuminating was the testimony of Lucy Lynch, a former vice president of mortgage operations at BankFirst.

"Fraud was not really a consideration in our world," Ms. Lynch testified, according to a trial transcript.

Ms. Lynch said the bank relied on an outside "loan officer" at a reputable mortgage broker to serve as its "eyes and ears" in the real-estate transactions. As it turned out, that person was indicted as part of the fraud ring. Ms. Lynch stressed that the bank took measures such as running all loan applications through a software program designed to detect fraud. "And things that didn't seem quite right, an underwriter could quickly pick those things out," Ms. Lynch said, according to a trial transcript. "So as far as having an actual policy or procedure around fraud, we didn't think it was necessary, quite frankly."

~~~~~~~~~~~~~~~~~~~~

Bear Stearns and BankFirst are now eating mountains of FRAUD for Christmas dinner! They bagged their own dinner by not doing oversight and due diligence on their own behalf. My Holiday wish for them is that they get indigestion followed by extreme nausea followed by the backdoor trots so severe that their bottoms get sore.

Sauce for the goose...they have created these health problems for many others. Wonder how they feel being on the receiving end for a change??

http://online.wsj.com/article/SB119820566870044163.html?mod=googlenews_wsj
Quote 0 0
Fraudsters being caught at this game still fare better than borrowers do.

Fraudsters still have a roof over their heads.

Dee
Quote 0 0
I posted this to show one instance of a fraud ring being uncovered and to show how the fraud was perpetrated. And to show that Bear and BankFirst deserve their indigestion. They were gluttons and now they are losers.

You and me in tandem with everyone at this board are not going to deny the bigwigs of their ill-gotten gains by removing them from their homes at this time. It does no good to sulk about it since the fallout will be coming for years yet and it remains to be seen who will keep their homes and who will not. I am a realist and enjoy the small victories as they come because I can remember when there were NO victories and law enforcement was in deep denial. Yes, it galls me, too and everybody here should know that by now. None of us are going to change the system overnight.

So your point is...???

Quote 0 0
Are you referring to me?  If so?

My point is not aimed at you and hopefully you know that already.

No matter how they squeal right now, the focus should be on the borrowers
that no longer has a roof over their heads due to the scam.

I was just agreeing.

Dee
Quote 0 0
Santa
Selling FRAUD to Wall  Street!
 
 
(8º) Subprime Deals
InfoBolsa - 2 hours ago
Deal Summary --Originators: Argent Mortgage Company; --60+ day Delinquency: 24.61%; --Realized Losses to date (% of Original Balance): 1.37%; --Expected Remaining Losses (% of Current Balance): 15.92%; --Cumulative Expected Losses (% of Original ...


The Citigroup who stole Christmas
Salon - Nov 26, 2007
AMC was the loan-servicing operation of ACC Capital Holdings, the parent company of Ameriquest Mortgage Co., for years the nation's largest subprime-loan originator.
Quote 0 0
Write a reply...