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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Lets hope they find all the Slime bags!!!

This is from fraud digest

American Home Mortgage Servicing, Inc.

Lender Processing Services

Action Date: August 23, 2011
Location: Jacksonville, FL

On August 23, 2011, American Home Mortgage Servicing, Inc. filed a lawsuit against Lender Processing Services ("LPS").

The suit alleges that LPS employees improperly signed more than 30,000 mortgage documents. This allegation is like a confession from George Washington that he ate a few cherries from the cherry tree.

The work of County Recorders Jeff Thigpen (NC), John O'Brien (MA) and Curtis Hertel, Jr. (MI) shows that the problem with LPS documents far exceeds 30,000 mortgage documents.

Foreclosure fraud activists in Florida are preparing maps modeled on the Guilford County map prepared by Guilford County Recorder Jeff Thigpen showing every property in the county that may have a chain-of-title problem because of LPS-prepared mortgage documents, including mortgage assignments, affidavits used in foreclosures, and mortgage satisfactions.

The maps will be presented to state and federal officials who are conducting investigations of fraud by banks and mortgage servicing companies.

To view the Thigpen PowerPoint available on the website of the Guilford County Recorder of Deeds, click here.
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I hope they find and put all of the banksters in jail.
April Charney has been working hard on the fraud in Florida. She spearheaded the Attorney Generals investigation until the 2 attorneys were fired. Now they (the banksters) are gunning for April.
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Here is the AHMSI v. LPS, DocX petition.

Yves Smith said: 

Wow, Jones Day just created a huge mess for its client and banks generally if anyone is alert enough to act on it.

The lawsuit in question is American Home Mortgage Servicing Inc. v Lender Processing Services. It hasn’t gotten all that much attention (unless you are on the LPS deathwatch beat) because to most, it looks like yet another beauty contest between Cinderella’s two ugly sisters.

AHMSI is a servicer (the successor to Option One, and it may also still have some Ameriquest servicing). AHMSI is mad at LPS because LPS was supposed to prepare certain types of documentation AHMSI used in foreclosures. AHMSI authorized the use of certain designated staffers signing with the authority of AHSI (what we call robosinging, since the people signing these documents didn’t have personal knowledge, which is required if any of the documents were affidavits). But it did not authorize the use of surrogate signers, which were (I kid you not) people hired to forge the signatures of robosigners.

The lawsuit rather matter of factly makes a stunning admission (note that PSA here means Professional Services Agreement, and it was the contract between AHSI and LPS.

The complaint said that these procedures were standard between the two companies, which was to “ memorialize the transfer of ownership lender to the securitization trust” right before initiating foreclosure. If you are a regular reader of this blog, you know that is impermissibly late. The note and mortgage had to get to the trust by a clearly specified date, usually 90 days after closing. As we’ve written numerous times, in the overwhelming majority of cases, the securitization entity was a New York trust, and New York trusts are like computer code, they can only operate exactly as stipulated. The exception was trusts by Chase and WaMu, which did allow for the originator to serve as custodian for the trust.

So AHMSI has just admitted that all of its foreclosures done with LPS were completed by the wrong party. In Alabama, wrongful foreclosures are subject to statutory damages of three times the value of the house, and recent cases have awarded much higher multiples of the property’s value. This little paragraph is a litigation goldmine for the right attorneys. I hope they have fun with it.

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Unfortunately, the possible get-out-of-jail free card is the term "memorialize."

" memorialize the transfer of ownership lender to the securitization trust” right before initiating foreclosure ... "

Use of the term describes the establishment of a "new" record that purports to show something that was already done - i.e.,  "... a written account of some act, court proceeding, transaction, or instrument, designed to remain as a memorial or permanent evidence of the matters to which it relates." 

It isn't necessarily contemporaneous and it's probably bogus but they wrote in some carefully-crafted wiggle room.


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