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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Growing Foreclosure Crisis

Washington, DCToday on Capitol Hill, Representative Maxine Waters (D-CA)—Chairwoman of the Subcommittee on Housing and Community Opportunity of the House Financial Service Committee-- introduced two major pieces of legislation in response to the nation’s growing foreclosure crisis—H.R. 5679, “The Foreclosure Prevention and Sound Mortgage Servicing Act” and H.R.5678,“The Neighborhood Rescue and Stabilization Act.”
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She is doing a pretty good job on the servicers.

However, I don't see that she gets just how much money these servicers
make when they start the foreclosure ball rolling.

Therefore, she still won't get the results she wants.

They are not going to voluntarily reduce their income which is exactly what she wants them to do.

They are not going to tell the truth to the politicians about servicing
jackpots and how they are engineered to be assessed without
just cause.  We'll just tack those fees onto the end of the loan does
not give the borrower redress.

If she hasn't learned that Mozila is close to being a pathological liar about
his business practices, it will be hard for her to make effective changes.

The biggest step she could take for borrowers caught in the foreclosure
scam is to require that the servicer prove default before allowing the
foreclosure to move forward.

She does not seem to know that there are bogus foreclosures based
on thin air with no facts to substantiate that a borrower should be
declared in default.

She does not seem to know that servicers will buy a house sold at auction
and profit from it in multiple ways.

It should be a conflict of interest for a servicer to buy a house that they
have levied fees to eat up equity then resell for more than the loan balance.

To do this the servicer continues to pay the trust monthly.  If the servicer
makes a $5.00 a month fee for collecting the mortgage repayment checks,
as they have done.  Do you really think that a $5.00 service fee is going
pay the bills?  Will that $5.00 a month per borrower pay bonus' the size
they are used to being paid?  Why would they cooperate?

The other thing I didn't see was to require the servicer to provide an accurate accounting record.

They don't have to and often don't and if you believe insiders reports
that they don't have the technology to do it.

If there is one qualification as a mortgage servicer would be that they
are able to provide an accounting of payments and fees levied.

If the fees are contested by the borrower, they could care less.  In fact,
if you withhold payment of fees that you don't owe them; you just make
the foreclosure occur more rapidly.

Fees should have to be handled away from the principal and interest payments that you do make.

To understand what motivates the servicer to assess fees just simply
look at one late fee they collect.

Late fee assessment:  $35.00
Servicer receives $5.00 a month to process your checks.

One late fee is 7 times the income earned.  That late fee is probably the
lesser amount of other fees that they assess.

Why would they do loss mitigation? 

She doesn't seem to get the notion that there is a pooling servicing agreement with the trust or noteholders that gives the servicer
the right to keep the fees they assess.  They are not forwarded to the trust.

Shouldn't a borrower have the right to report their servicer to the noteholder
when the servicers actions have clearly damaged them? 

Often borrowers can't even find out who the noteholder is to send a complaint letter or notice of intended litigation if the money is not refunded
within 30 days.

I don't know if she actually wrote this bill or someone else did. 
It would be awesome to ask her to amend the bill to cover the additional
parts of servicing that she did not mention.

Dee




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