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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House approves bill to let judges modify loans

Based on Citi , the measure only gives bankruptcy judges the authority to modify mortgages that were set up prior to the enactment of the bill. The legislation also includes a provision giving home loan servicers legal protection if they modify mortgages. Loan servicers have been apprehensive about agreeing to modify mortgages because of the possibility that mortgage investors would file lawsuits against them for violating contracts.
It is also unclear whether the measure will have support in the Senate. However, Senate Majority leader Harry Reid, D-Nevada, said he believes he has the votes to confirm passage. The measure will likely require the support of a few GOP Senators. A spokeswoman for Sen. Mel Martinez, R-Fla., said he is considering the legislation. Like many other states, Florida has an unusually large number of troubled homeowners and foreclosures.
Many of the 67 members of the centrist New Democratic Coalition voted to support the measure after a series of provisions they introduced were included into the overall bill.
Earlier this week, a series of new measures sought by the group were included in the bill. One provision requires a judge to consider whether a borrower has been offered a loan modification by the holder of the mortgage prior to modifying. Any modification has to meet the guidelines set up by an Obama Administration for what is affordable to a homeowner. The Obama plan provides government funds to help lenders modify mortgages down to 31% of a borrower's pre-tax income.
The legislation also requires bankruptcy judges to consider whether to use an interest rate reduction when modifying mortgages prior to considering reduction of the principal.
The group, lead by Rep. Ellen Tauscher, D-Calif., succeeded at including in the legislation a measure that would create some additional uniformity when it comes to what kind of modification bankruptcy judges agree to. One other provision requires judges to use Federal Housing Administration appraisal guidelines to consider the property's "fair value." Also, judges would have to require borrowers to pay a uniform amount each month, rather than varied amounts.
Also, struggling homeowners would need to certify that they actually have talked to their loan servicer to see if a modification can be made instead of bankruptcy. The borrower would need to provide the servicer with their tax return, for example, to prove their income, he said.
Many GOP lawmakers are opposed to the legislation that they argue will increase the price of mortgages overall by forcing mortgage investors to lose capital on some troubled mortgages leading them to raise the price of other mortgages.
Lawmakers voted down a GOP mortgage modification proposal introduced by Rep. Tom Price, R-Ga., 182-242. Price's measure would have allowed a lender that was required by a bankruptcy judge to modify the principal of a mortgage to recover the entire amount of the principal modification if the borrower profits from selling the home.
"This bill redistributes wealth from responsible taxpayers and rewards irresponsible borrowers and undermining the efforts undertaken by the government to stabilize the markets," Price said.
Lawmakers also rejected a measure that would prohibit the use of government funds to modify mortgages for individuals that "lied about their income on their mortgage application."
Price's measure would have also prohibited government funding to any lender that failed to follow proper underwriting standards, such as in situations where it encouraged borrowers to lie about their income. 
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    This bill is a total cop-out by the President and Congress. It is an attempt
to "pass the buck" to the bankruptcy courts. The fact of the matter is that
the entire private sector is bankrupt right now! The only solution to this problem is to reduce private debt by fiat! This is a national emergency, not
a normal recession. Strong measures are needed right away to prevent a
massive worldwide disaster.
     When one considers the amount of TARP money already borrowed from
the private sector just to keep "zombie" banks alive, it is clear the govern-
ment could have bought up all owner occupied, single family Notes for 50c/$
and then devalue all mortgages by 50%. This would have freed up alot of
consumer funds to stimulate the economy and to fund a tax increase on
energy to reduce the National Debt.
      Our leaders seem to believe that putting more debt load on the ship of
state will stabilize it against the storm, when in fact adding debt load will
only sink the ship in a very short time. Debt load needs to be thrown over-
board to lighten the load and save the ship!
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tired and tattered

And who is going to be there when they make these loan mods to their favor again. And who is going to be there the next time they manufacture foreclosures. As long as they continure not to regulate their bad acts, there is no way to be sure that they will not commit fraud again. And who is going to look at the loan mods and make sure they are not impossible to pay back, and what is in the fine print. All this is nothing but a cover up. They were not punished the first time for their fraud and it continues to be ignored. What makes them think that they would do anything to benefit us? Unless we all lawyer up, there is no way to be sure that the loan mods we get would be any better than the ones that got us in to this mess.

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thanks for the heads up.

I am facing a 3/23/ sale despite having applied for the new modification with Litton. Shouldn't litton stop the sale to consider a modification?

 has litton done any mods for others?

I may be forced to file ch.13 to stop this sale.

what is the senate doing about the cramdown bill?
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