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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I work for a non profit housing advocacy, and I'm developing a survey/questionaire about predatory lending.

Even though a large number of people who call us claim they are victims of predatory lending.... technically, many are not.. even though their loan terms may be unaffrodable.

I've got a fairly comprehensive list of questions to be posed to Borrowers about their loan's origination, funding and servicing... but thought this group might be able to add it the list

Care to contribute?


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Ohio

David Petrovich wrote:


Even though a large number of people who call us claim they are victims of predatory lending.... technically, many are not.. even though their loan terms may be unaffrodable.


A loan with terms the borrower can't repay is predatory.

Rather than waste time forming a questionairre...why not better utilize your time by getting out your fine toothed comb and finding the fraud that you say "technically" does not exist. The paperwork will speak for itself if you know what you are looking at and looking for.
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O -
Ohio is right. 


You could ask an ex ameriquest employee, they know just how it's done.
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i agree with ohio as well. take time to look at the fraudulent power of attorney agreements on file with county clerks that these companies filed and no one has challenged-filing a poa with the county a year after a company went out of business...its horrific how they steal peoples homes and there arent lawyers out there who want to help
i am battling pro se and believe you me its a battle but on my own i figured out my plan of attack and they are all going to pay-and then i am going to help others who are fighting like me
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So the group's collective reply, thus far, is there is no need to ask any questions of the borrower at all and preparing an initial questionaire is a waste of time?  The borrowers' experience and first hand recollection of the process is immaterial?

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So the group's collective reply, thus far, is there is no need to ask any questions of the borrower at all and preparing an initial questionaire is a waste of time?  The borrowers' experience and first hand recollection of the process is immaterial?

No, your statement is incorrect.
Are you asking questions like this?

During closing, did you (home buyer) sign any paperwork that was blank?

Were you (home buyer) aware that there could be more than ONE HUD-1, and that the two documents may not be the same?  Example such as this, figures do NOT match when comparing the two HUD-1 statements.
(I KNOW that this happens, as it happened to ME.  The HUD-1 statement that my lender received DID NOT match the HUD-1 statement that I received at closing.)

Were you (home buyer) advised by the originator of your loan that you would be entering into an FHA contract, but when closing your loan, the loan documents state clearly that you are entering into a conventional, or a loan with an ARM?

Did your loan documents state that you (home buyer) would be paying for PMI?

Did you (home buyer) receive your Title Policy Insurance document?

The above are just a few questions that I can think of. There are MANY more questions to add to your list.


My loan documents are listed with The Center For Responsible Lending to show others what a predatory loan looks like.

Please contact me if I can be of any assistance.

Ann

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Thanks, Ann.  I appreciate your response.  Though I've never asked the complaining borrower if he or she knew there might be more than one Final Hud1,  I have found that to be the case, though, when comparing the lender's file, to the papers furnished to the borrower. 

I used to investigate allegations of predatory lending, loan servicing irregularities, and untoward realty transactions for the MBA in DC.

Nothing surprises me.

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Ohio
How can you investigate anything without knowing what to look for? I don't believe you DO know. I think you want to see what the surface evidence is and not be forced to delve deeper into the pits of hell that victims have come to know as their very existance.

When you yourself learn what predatory lending really is you will KNOW what questions to ask.

And then if you are REALLY a brave one you will move forward into the world of MSF.

You have to know your stuff before you can even toy with the idea of helping others. 99% of the borrowers you will attempt to ask questions of will respond with a blank stare....they don't KNOW what has happened to them. That is why they are talking to you in the first place.

I'm not trying to be a smart a$$. I just think you have not rolled your sleeves up and dedicated yourself to getting down in the trenches and learning the ugly nasty truths.

Do your homework. The questions will produce themselves. Until then don't hold yourself out as an advocate and mislead borrowers into thinking you can help. They have been misled too much already.
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"I'm not trying to be a smart ass."

I'm here to gather information and, with the exception of Ann, have been met with negativity.

I enjoy a national audience... if you want to call attention to the problems... constructively, speak up. 

If you are simply interested in venting and criticizing....  you aren't helping me. 
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Moose
NJD - the era of "predatory lending" as a standard business practice in the style of Ameriquest and Countrywide is coming to an end. Yes, there will still be some that are written that aren't in the best interests of the borrower, but in sheer numbers they're going to be miniscule.

Senator Phil Gramm used to say predatory lending didn't exist because no one in the industry could define it for him.  I have news for him that I sent in a letter, which is basically, a predatory loan is one you (as someone knowledgeable about mortgage loans) wouldn't let your own mother sign.

In other words, someone with expertise knows it when they see it. The fact that no one would admit it is illustrative of the fact that the issues are complex enough that they aren't easy to understand for the majority of the target market and are in fact, designed that way.

The fact that originators and brokers had their own insider jargon for these types of loans is indicative that they knew exactly what it was they were cranking out.

The more pressing issue now is the servicing of these loans.

Moose







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NJD
Thanks for the non adversarial tone, Moose.

"The more pressing issue now is the servicing of these loans."

I'm sure you are right, and it seems the members of this forum are making this pressing issue their fight. That's fine, and I respect that, but its not my fight.. I've got battles of my own

I see many unsuitable/unconscionable loans which are blatantly predatory. Many of these loans were originated by unethical brokers who relied upon inaccurate appraisals, fictitious tax returns, invented employment history, etc..  Some of these loans also have material violations to TIL. Keeping homeowners in their homes using these "tools" to compel the offending lender to the negotiating table is my fight... a fight I've been waging for almost two decades.  One house at a time.

Do I know everything?  No.

I came here to see if my "interview" can be updated and tweaked to reflect today's origination practices... but nothing new has been introduced.


I've heard some buzz about software which can analyze how lenders have applied payments and if the payments were applied in compliance to the terms of the loan.  Think its worthwhile? 
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Moose
NJD, regarding a software package to analyze how the servicer applied payments, I would have to offer that what the servicer reports at any given time may or may not reflect reality. They have been caught providing multiple sets of account histories and calculated balances in both civil and bankruptcy courts.

That's why I recommend people demand a quarterly payment history. That provides at least a question of fact that will usually survive their summary judgment motion if they are playing fast and loose with the numbers later on.

The problem with attempting to compel whomever it is to negotiate in today's securitization environment is that you're not negotiating with the entity that made the loan, and in many cases, they aren't coming to the process with clean hands - and they're not the decision makers.

Evidence of this is starting to show up in legal circles in debates over discovery rules. The corporation defendants in some of these cases are skirting the discovery rules by sending uninformed people to depositions that involve e-discovery (computerized data). Their answers are typically, "I don't know," or "I don't handle that." The game is to delay and obfuscate, not negotiate. After several unfruitful depositions, it grinds on with motion practice before frustrated judges with an eye on their calendars.

As a generalization, it really depends on who you're dealing with. The predators are well known and you have to assume they aren't operating in good faith. To trust them or their counsel you do it at your own peril.

Moose




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Ohio

NJD wrote:
Thanks for the non adversarial tone, Moose.

"The more pressing issue now is the servicing of these loans."

I'm sure you are right, and it seems the members of this forum are making this pressing issue their fight.
 That's fine, and I respect that, but its not my fight.. I've got battles of my own

I'm sorry, did you not catch the name on this site when you came in? This forum consists of MSF victims... If predatory lending is your pressing issue I have to wonder why you are here. The two are not the same.

We did not "make" this our pressing issue...the servicers did. We are not here to gain information for a new book or to advertise our websites and services.

We are just a group of victims who are helping each other....no agenda, no ulterior motives.

If you want to get weepy because we have not rushed to you with suggestions that in the end is only of any help to YOU...fine. You said it best yourself: "That's fine, and I respect that, but its not my fight.. I've got battles of my own"
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