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
HomeBanc wins OK to sell loan-servicing unit 
BLOOMBERG NEWS
Published on: 10/31/07

HomeBanc Corp., a regional lender that filed for bankruptcy when investors quit buying its loans, won permission to sell its loan-servicing division to a unit of Bear Stearns Cos. for about $61 million.

U.S. Bankruptcy Judge Kevin J. Carey in Wilmington, Del., approved the sale to EMC Mortgage Corp., company attorney Matthew W. Levin said. Immediately before a hearing in the case Tuesday, HomeBanc struck a deal to end objections from investors who own mortgages issued by the Atlanta-based lender, Levin said.

"We resolved the objections," Levin said in court.

Units of Citigroup Inc., Bank of New York and Wells Fargo & Co. had opposed HomeBanc's proposal to sell the right to collect mortgage, tax and insurance payments on loans that investors own. The banks, acting as trustees for the investors, said they feared that some of the loans might go bad before the sale of the servicing rights would close, Levin said in court.

HomeBanc services as many as 48,300 loans worth about $8 billion.
 

What could investors' objections have been?  Hmmm.......
 
 

Quote 0 0
Oh My God
those poor borrowers have just been dumped from the frying pan into the flames of Hell.
 
And the beat goes on
Quote 0 0

HomeBanc Seeks More Time for Ch 11 Plan

HomeBanc Mortgage Corp. Wants 4 More Months to Prepare Chapter 11 Plan

The Atlanta-based lender is asking a federal bankruptcy court to extend by four months its exclusive right to propose a plan through April 7, 2008.

In a filing Wednesday with the U.S. Bankruptcy Court in Wilmington, Del., HomeBanc said that it has "communicated regularly" with its major creditor constituencies regarding the sale process and other potential means for maximizing value for its creditors.

An exclusivity extension is, however, necessary to allow the sale of the servicing business and other assets to close, and time for talks on plan terms, the liquidating lender said.

The sale of the company's servicing business to EMC Mortgage Corp., a Bear Stearns affiliate, is set to close Dec. 3. The deal, which calls for EMC to pay about $60 million to take over the servicing of about $7 billion worth of home loans, was approved by Judge Kevin Carey on Nov. 1.

The company is also seeking to extend its exclusive right to solicit creditor support for a plan through June 4, 2008. The company's exclusive solicitation period is currently set to expire Feb. 5, 2008.

Companies operating under Chapter 11 protection must submit to the court a plan outlining how they will repay creditors. Exclusive periods prevent other parties from filing competing plans, enabling the company to retain control of its reorganization process.

Since entering Chapter 11 protection in August, HomeBanc has closed about 20 satellite office locations, sold various assets, and taken other steps to wind-down its businesses.

A hearing on HomeBanc's request for an extension of its exclusivity periods is set for Nov. 27. At the same time, the court will consider a request by the company for permission to sell several pools of mortgage loans, with an unpaid principal balance of about $10 million, and the servicing rights to the loans.

HomeBanc Mortgage filed for Chapter 11 protection in August and promptly laid off more than 900 employees. Top of page

Bear Stearns pays $60 million to take over the servicing of about $7 billion worth of home loans? What a great investment! With BS and EMC's MSF expertise in stealing homes, it ought to make a tidy return.  This is sure to be one Christmas present no one wants or needs!

Quote 0 0
~Beenawhile
EMC stands to make HUGE and i do mean HUGE profit off of this.


Homebanc owns 48, 300. loans, in which they are selling to EMC

The very second that EMC gets the loan loaded into their system, they will automatically file some of these fees to the borrowers account.

I know this because EMC sold my loan When they realized I KNEW WHAT THEY WERE UP TO.

THE FOLLOWING ARE SOME OF THE FEES EMC ADDED TO MY LOAN WHEN THEY SOLD IT.

1. An appraisal Fee ( no-one ever came here to appraise my property.)
2. B.P.O. Fees (every week) for two months.
3. Attorney's fees, (on behalf of their portion of selling the loan to make sure everything went through correctly on their end of the deal.) EVEN THOUGH I DIDN'T "ASK" THEM TO SELL MY LOAN....
4. Attorneys fees were then tacked onto my loan by the Servicer buying my loan. another bwahahahah.
5. EMC managed to make sure they put two more Home Owners Policies on my loan. This did this buy Placing a policy..... then canceling it  Bingo,..... they then charged the money against my loan. Now my loan was almost a $1,000.00 higher.
Then they Buy another Home Owners policy, pay for it, then cancel it, (they get their money back and in their pockets.) Then assessed me another charge for HomeOwners Ins.

6. Then they Put TWO FLOOD policies on the loan.

Ya get the picture now?
Homebanc will stand to make a huge profit during the sale of these loans, if they can fleece every borrower 10k then they have made a profit of what
483,000,000.00 that's 483 MILLION. Just by swishing the loans away.

EMC is going to pay them how much? 60 Million 543million.

If they (Homebanc) manages to claim that every loan is in default of at least $2,000. that's yet another 96 Million.

543 mil.  +  96 Mil = 633million.

Now while selling a portfolio of 7billion worth doesn't seem feasible that they would be willing to lose that much money keep in mind some of the following.

1. Homebanc gets to wash it hands of the loans they have been servicing incorrectly. Let's EMC deal with it, and get rich.

2. The contract will be something set up like......... EMC will have to pay Homebanc, on a monthly basis, every time their Collections department is able to collect illicit fees on the borrowers account.

So the illicit fees mentioned above will be "PAID BACK" to homebanc

I know this because my new servicer is still claiming they are charging us for fees, that EMC added to the loan before they transferred it.

3. Since homebanc will more than likely be claiming that all of the funds associated (with all those illicit fees) were Never paid BEFORE the time of selling the loan, DOESN'T THAT GIVE HOMEBANC THE RIGHT TO MARK THEM OFF AS UNPAID DEBT, and therefore get to keep any proceeds they get monthly from EMC, as FREE and clear, and EXEMPT FROM A TAXES?

I'm thinking that answer is yes. ~WHOA~~~ WE'VE GOT IRS FRAUD!!!!!
Gee, but who wouldda ever thunk they would do that????????

No Homebanc isn't going to loose too much money, if they do at all.
I think there are other fees, that I ha vent even thought of.

OK but to finish this pretty little method of fraud...


When EMC is all done collecting, and FORECLOSING on Homes for HOMEBANC
EMC will then begin the collections of fees for their own pockets.

Those poor borrowers ARE IN FOR ONE HECK OF AN EXTORTION RIDE.

Homebanc then gets to change its name along with a few other details, and then begin the process all over again.






Quote 0 0
~Beenawhile
ED,

I was wondering if you can tell us some of the following.

You have said that EMC is defunct, and out of business.

you have said EMC is going out of Business.

With such transactions as these (the purchase of Homebanc's loans for 60million) that says, to us that EMC is not DEFUNCT and out of business, and it says to us that EMC is NOT GOING OUT OF BUSINESS.

Can you please reiterate for those of us who are confused about what has been said, and explain to us how they are able to continue such purchases, as this?


Very confused about this, and would like TO KNOW THAT WHAT YOU SAY IS TRUE.
Thank you.
Beenawhile

Quote 0 0
~Beenawhile
and let me add....... that the post above is not meant to discredit you in any way.

Sorry, it was straight forward, to the point, and because of that sounded rude when I proof read it...

Offer hope to my soul, and please explain.

My soul hopes for the day when they are no longer existent. Along with all the other EMC victims.

Thank You,
Beenawhile
Quote 0 0
Write a reply...