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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Focus:Civil Rights
Action Request:Read
Location:United States
Posted on Wed, Sep. 12, 2007

FTC gives warning about mortgage ads

By The Associated Press

The Federal Trade Commission has warned more than 200 companies about “potentially deceptive” mortgage advertisements that could give borrowers a false impression of home loan costs.

The FTC declined to make available a list of mortgage brokers, lenders and media outlets warned because the commission has not concluded the companies are breaking the law.

Some ads, the FTC said, highlighted mortgage rates as low as 1 percent, but didn’t inform consumers they often apply for a short period and can rise.

Experts say this kind of advertising is one reason consumers — particularly the elderly, minorities and the poor — signed up for subprime loans given to borrowers with weak credit.

While some people were betting they could refinance their loans before the rates reset, others were not informed adequately of the risks, experts say.

Lucy Morris, a senior FTC consumer protection attorney, said disclosures of mortgage terms have to be clear. “It’s not enough to bury important information in unreadable fine print.”

  

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Hmmm.... And here I thought that Lucy Morris worked for HUD....I'm getting bad in my old age....

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Mortgage advertising is of concern, but I care more about the FTC regulating mortgage servicers, specifically Litton Loan Servicing, LP.

Finally, the FTC has now arose from the dead.  As you all know the FTC has been asleep at the wheel concerning Litton Loan.  We have all been complaining to the FTC for years about Litton and they turned a deaf ear.  Even though they are the regulatory agency that has jurisdiction over mortgage servicers.

I want the FTC to take the appropriate enforcement action against Litton for their fraudulent predatory practices and unscrupulous business practices against innocent homeowners victimized by them. 

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