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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It's been a while since I have posted on this site.  Our MS Fraud hell went away only after we were forced to declare BK 13 to avoid foreclosure.  We were one of the few lucky ones that were eventually able re-fi, and sell the house just prior to the collapse of the market.  We didn't make any money on the equity Fairbanks stole from us, but, were able to get out of sub-prime hell for the most part (even though our credit will never be the same).  I learned so much from this site and I thank all of you who provided advice & support.  (Especially Nye, he really knows this stuff) 

My post is about what will be happening to the billions of dollars of insurance payments that will be paid out in the next months for all the covered insurance claims in the Mid-West.  I work for a large insurer and we are required to name the mortgage company/servicer on many of the payments we make.  The homeowner has had a severe, and possibly life changing event due to mother nature.  Most folks need the money to get water out of the house, repair the roof & property, get trees removed, and get their life & property back in order.  However, when an insurance company is required to add the mortgage company on the check (many of whom I have seen are the names we all know & dispise),,  Are they going to deposit the check in their own portfolio, or,, are they going to do what they are supposed to do, and send the necessary funds back to the homeowner to make the repairs?  With the mortgage industry in a tailspin like it is, I hope they do the right thing.  Most, I'm sure will get the money back to where it belongs, (with the homeowner) but I have so much distrust for the mortgage industry, I just don't know anymore.

If any of you out there  come across this situation and don't get the insurance money back from the mortgage company after you endorse the insurance check, please, post on this site.  I can't promise I can help, but,,,, as one of many claim adjusters that are writing the checks, I'd like to know if this is even a problem.  Thanks.
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Joe B

A number of years ago, I had a relatively small insurance claim. The original check from my insurance company had my name as well as FB's name on it. I immediately called my insurance company, explained the situation and problems I had been having with FB, asked them to google FB to see what I was saying was true. I then asked them to reissue the check in either my name alone, or my name and the name of the contractor doing the repairs.

Fortunately, they were able and willing to do that. Not all companies would be willing to do it, but it is worth asking the question.

In short, my advice is to tell anyone who is listening, to see if their insurance company would be willing to do similarly in order to avoid the loss of this money. Even though FB and others are not supposed to take this money, they are not supposed to do a lot if things that they do...right?

Good luck!


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Nye Lavalle
DO NOT SIGN THE CHECK OVER TO THE INSURANCE CARRIER. Get a lawyer and make sure money is deposiited into an escrow account of the lawyer or go to Court to get a declaratory judgment. Many times, servicers put this money into suspense [earning interest and use of money] ad make you pay up front repairs to get the job done.

Many servicers like EMC, demand that you sign over the check to them and then they will write checks to the repair people. Problem is, if they do write the check, they may write fro less or if the contractor screws you, then you are double whammied. Charge your repairs so you have recourse if contractor screws up.

This time is a double whammy since you may not only get screwed by mortage and/or insurance company, but unscrupulous contractors. Buyer and borrower beware!
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Sounds like a preemptive phone call and/or letter to every AG and Ins. Commish currently under water - especially AG Marc Dann out there - would be in order.

That being said, if anyone, ANYONE, is dealing with Fairbanks/SPS not only in the mid-west but anywhere in the United States ever has any difficulty in convincing either state or federal agencies or private attorneys of the known issues that Fairbanks/SPS has feel free to point them to my site or drop me an e-mail directly. I'll be more than happy to offer any supportive evidence I can.
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We are in the exact same situation and we have already had to deal with this once before.  The check was made out to us and Ameriquest both times.
The first time, we had to start the repairs ourself without the help from the insurance check.. After we were 1/3 finished, we had to notify Ameriquest and they sent an inspector to check the work then they issued 1/3 more and then sent the inspector and finally we got the rest of the monry.    This tme we didn`t sign the check and of course it was sent back to us to be signed.  We need a roof on this house because of hail and wind damage and the check was issued to us in May and is still sitting here.
When we have repairs to be done on our house, we try to upgrade to a higher grade of material since so much has changed in the past 12 years since we had this house built and we explained this to Ameriquest but none of that matters.   In our 2 incidents, the insurance check did/will not cover the damage but Ameriquest holds the money until they get ready to send it to you.
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This is a common "scam". Ask anyone in New Orleans. The mortgage companies claim they have to micro manage the repairs because otherwise the homeowner is going to take the money and run. Like anyone in the mortgage business knows anything about home construction.

In New Orleans the mortgage companies forced the homeowners to pay off the mortgage with the insurance money.... and you can guess what happened. Homeowners can not afford to pay for repairs. It was such a big problem after Katrina that the governor of Mississipi had to lean on the mortgage companies to release funds. I guess it was no coincidence that the governor of Mississipi was republican.

IMHO its just another way for the mortgage company to sit on a little pile of dough and collect interest or whatever they do with the money.

Of course the homeowner pays for the insurance.
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Hmmm...Gov. of Missisippi.. Hey, Me2 - who was the appointed monitor of Ameriquest?

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