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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Full press release here:
http://www.naca.net/_assets/shared/633277963737095000.pdf

Helping Americans Keep Their Homes: Center for Responsible Lending

Establishes New Institute to Help Homeowners Threatened by Subprime

Lending Crisis

Institute to Provide Legal Assistance to Families Facing Surge in Foreclosures

WASHINGTON, D.C. (October 12, 2007)—As the nation’s foreclosure epidemic continues to

worsen, the Center for Responsible Lending (CRL) has formed the Institute for Foreclosure

Legal Assistance (IFLA) to support groups giving legal representation to families facing

foreclosure and financial ruin because of abusive subprime mortgages. The National

Association of Consumer Advocates (NACA) will manage the project, which recognizes that one

of the biggest barriers families face to avoid losing their homes is the lack of access to quality

legal services.

 

The Institute, launched with a $15 million grant from investment management firm Paulson &

Co. Inc., will provide funding and training to organizations that help homeowners negotiate

alternatives to foreclosure. The majority of the funds will be grants to support direct legal

assistance to borrowers in 10 or more states to fight foreclosure, predatory lenders and abusive

loan servicers. It will do this primarily by providing money to top non-profit legal-aid groups and

law school clinics.

 

Formation of the Institute comes as the rate of subprime foreclosures, already alarmingly high,

is set to accelerate. Analysts have predicted that as many as 1.7 million foreclosures will occur

in the next two to three years. Within the next eighteen months, up to four million subprime

borrowers will see their monthly mortgage payments jump approximately 40% as initial “teaser”

interest rates expire. Servicers and lenders have largely refused to modify these abusive

subprime loans. According to a recent study by Moody’s, only 1% of loans that reset to a higher

interest rate were modified by servicers. Lenders and servicers are simply not modifying these

mortgages in sufficient numbers to help homeowners.

 

“Legal resources available to help struggling families fall far short of that needed to address the

millions of abusive loans that have been made in recent years,” said Martin Eakes, Chief

Executive Officer of CRL. “By providing funding and other support for attorneys who can

review loan documents and negotiate with loan servicers, we believe that many more

homeowners will be able to stay in their homes.”

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Thanks to the HomeEquityTheft blogspot for picking this up.

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Joe B
Folks-

     OK, so there might be some help out there. Does anybody have the ability or strength to actually track the impact of this assistance?

     Not to sound unpleasant, and at the risk of looking a gift horse in the mouth, I just doubt very seriously if this will do any good. Most of the organizations that will get this money already exist, and perform the work that this money is supposed to support. Has anyone received any support from any of the resources that are getting this money? In other words, the people who will be getting this $15 Million already exist and are allegedly available to help us today. I have spoken with a few myself, and none of them have been able to help me. Has anyone else gotten any help from these organizations? So, what will providing them with more money actually accomplish?

     I would rather see individual homeowners who are in the fight get relief directly through paying legal bills they have already incurred. This would be easy to administer, easy to track, actually provide direct relief, and make a BIG difference in the lives of those of us who are suffering from MS Fraud.

     Those of you who are victims, please answer this question...What would you rather see:
1. A non-profit in the local community get some money to provide a lawyer to help "review loan documents and negotiate with loan servicers?"

2. Provide money (relief) to the lawyer(s) you have already hired to offset some of the mounting legal bills in your fight?

    This $15 Million is being spent like this: An existing non-profit (Center for Responsible Lending (CRL)) sets-up an additional non-profit (Institute for Foreclosure Legal Assistance (IFLA)), and their job is to funnel money to other non-profits, whose goal is to assist homeowners. Does anybody besides me think this is absurd?

     The center for responsible lending (CRL) also has a bank as part of its organization. Wouldn't it make more sense for this organization to provide relief (i.e. dollars) to those victims who have incurred legal bills, and then help them refinance with reasonable rates, and reasonable fees? Why not utilize existing infrastructure to provide direct relief? Why create additional overhead to eat up funds, to turn around a distribute funds?

     What good does sending money through a bunch of non-profits who aren't doing any of us any good now? We need something NEW, something that will make a DIFFERENCE!!! Good grief!

     Sorry to sound bitter, but throwing money at organizations that are impotent today just seems to be a horrible waste of resources. I know it is well intended, it just isn't well executed!

Let the JB bashing begin!!

JB
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....and exactly how did Paulson & Co. come by this 15m?
http://www.websitetoolbox.com/tool/post/ssgoldstar/vpost?id=2218521&highlight=paulson

Paulson's Fund Up 410% This Year
Paulson hedge fund wins big in subprime fallout | Special Coverage ...

.....and yet THIS is the same firm that went for Bear twice this year, when it came out with EMC's phony Mod 'Squat' and later over charges of market manipulation to contain default data over fears that might hurt Paulson's huge credit default swaps profits.
 
Bear Stearns Criticized For Helping Delinquent Subprime Borrowers ... 
Hedge funds slam Bear over subprime losses: report | Reuters 
 
So much easier to grow a 'social conscience' in a year that Paulson & Co. has made billions betting homeowners will default on mortgages.  Question is....what are they REALLY hedging with this move? 
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I call his knee caps!!!!!
 
You actually bring up valid points, JB. Probably the quickest way to determine just how this new IFLA is going to function would be to place a call to NACA, speak directly to Attorney Rheingold and ask him to define "review loan documents and negotiate with loan servicers".
 
I believe Attorney Rheingold is in NACA's D.C. office (202) 452 1989.
 
As far as the dissemination of funds, this method is generally viewed as the "most effective" way to get funds out into communities as existing organizations are already functioning and are aware of community needs. From there I think it depends on what each organization deems necessary for legal assistance. Not a perfect scenario by any means but without the funds, manpower and know-how to create an entirely new organization this may be the best that foreclosure victims are going to see for awhile....
 
If someone has a couple million lying around they don't know what to do with I'll be more than happy to create a non-profit to help MSF and Predatory Lending victims with their legal issues. The necessary pieces are actually already identified. The funding is the only thing lacking...
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Quote:
Originally Posted by Joe B
     Those of you who are victims, please answer this question...What would you rather see:
1. A non-profit in the local community get some money to provide a lawyer to help "review loan documents and negotiate with loan servicers?"

2. Provide money (relief) to the lawyer(s) you have already hired to offset some of the mounting legal bills in your fight?

3.  Have NACA walk its Consumer Advocacy talk by getting federal prosecuters to bring criminal charges against MS Fraud perpetrators.

Utilize this dirty money, ill gotten gain reaped from MS Fraud victims' suffering to bring justice for greater benefit.  Random modifications and financial legal aid accomplish nothing so long as the band of jackals is allowed to hunt.

 
  


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Joe B
Amen Blossom!!

     Nobody wants to solve the real problem. They give lip service to helping the people most harmed, but no real action. All these "mod squads" and press releases about helping the people who are being ripped off are really just about press releases, not real relief!

     How about asking each one of the companies who has created this mess to provide $1 Billion dollars to help fix it!! After all, they are all writing off multiple billions to fix their bogus accounting... Oh, and by the way, this written off amount will lessen their tax burden for years to come!

     While I don't want to talk bad about the $15 Million donation, to put it in perspective, this represents 6/100 of 1 percent of Paulson's company's assets.

     If these various agencies turned their lawyers into litigators attacking the companies that created this completely screwed up mess, maybe some relief would come. How many lawyers does NACA have? How about the CRL? How about all the other agencies that are out there getting ready to "review loan documents and negotiate with loan servicers?" Imagine the collective good they could do helping litigate against these scoundrels (the only non R-rated word I could come up with).

     But, it is easier just to throw some money at it, pretend they are making headway, and generate good will and press releases...

     Sorry, but I have lost too much time, money, energy, good health, time with my kids, talking with my wife about something positive besides the threat of losing our home, the loss of money that is going to our lawyer... (I think you get the idea), to spin this in a positive way!

     I am fighting the fight, and just wish that some of these organizations would do the same!!

JB
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