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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arkygirl
Let the frustration grow. It is helpful to US for a change!

PHOENIX — Bobbi Giguere had no luck in securing a loan modification from her mortgage servicer, Wells Fargo. For months, she had sent the bank the financial documents it requested to process her modification. But each time she called to check on the request, she was told to send her paperwork again.

“I submitted the paperwork three times, and nothing happened,” said Mrs. Giguere, 41, who has a high school education and worked as restaurant manager before losing her job.

On Thursday, something happened. She questioned a Wells Fargo official about the bank’s lack of response — under oath.

The spectacle of a high-ranking banking executive being grilled by an ordinary homeowner was the result of an unusual decision by Judge Randolph J. Haines of the United States Bankruptcy Court to summon a senior executive from Wells Fargo to appear in Mrs. Giguere’s bankruptcy case.

At the hearing, Judge Haines made it clear that he was acting out of concerns about Wells Fargo’s mortgage modification practices generally.

“This is certainly not an isolated case,” he said. “The kind of story I hear from this debtor is one that I and other bankruptcy judges around the country are hearing over and over and over again.”

~~~~~~~~~~~~~~~~~

Under preliminary questioning by one of the bank’s lawyers, Mr. Ohayon stated that Mrs. Giguere had repeatedly failed to provide a financial worksheet, a critical document in processing a loan modification.

Under cross-examination by Mrs. Giguere (who had a little assistance from Judge Haines), the bank’s defense withered. From her files, Mrs. Giguere produced a letter from Wells Fargo describing the paperwork that she needed to file for a loan modification. In the witness chair, Mr. Ohayon read the letter.

“Mrs. Giguere is right,” Mr. Ohayon concluded. “The letter did not ask for a financial worksheet.”

Experts said the hearing in Phoenix reflected rising frustration by federal bankruptcy judges with mortgage servicers, which process payments for banks and the investors who own large pools of loans. In recent months, judges in Ohio and Pennsylvania have chastened mortgage servicers for failing to process payments properly and for errors in foreclosure filings, among other concerns.

“The judges are seeing more and more of a pattern of indifference to record-keeping and good business practices,” said Robert Lawless, a law professor at the University of Illinois who specializes in bankruptcy law.

http://www.nytimes.com/2009/09/04/business/economy/04wells.html?_r=2&partner=rss&emc=rss
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4 Justice Now
Thank-you! so much for posting Arkygirl. It really helped to encourage a friend of mine who has been working twelve hours a day, seven days a week without a single day off for over a year now, simply because he has a large amount of equity in his home (Just like what many of us had stolen) and Wells Fargo refuses to negotiate and/or alter the terms of his loan (for the most obvious reason).   

It's so very, very sad to see this poor, honest guy risking his mental and physical health just to retain what his has worked so very hard for and keep a roof over his family's head. His story is much like that of so many others. He put far too much trust in what his lender said and/or promised. He made the incredible, but common mistake of assuming that this bank/lender would act in a professional, honest manner, and if/when they didn't, he would have some form of readily available legal recourse.

Unfortunately, he's discovered just as so many of us have... that honesty, integrity, professionalism and competence simply doesn't exist in the banking/lending/servicing industry any longer (for the most part anyway) and that justice has become an all too terribly rare, if not totally extinct ideal. My poor, exhausted friend did mention, just the other day that if he did happen to pass away, because of all the stress, etc. at least his mortgage would be paid in full (thanks to his life insurance) and his family would still have a home to exist in. How very sad in deed.   

V/r,

4J
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h gosh
4 Justice Now made this statement:
"My poor, exhausted friend did mention, just the other day that if he did happen to pass away, because of all the stress, etc. at least his mortgage would be paid in full (thanks to his life insurance) and his family would still have a home to exist in. How very sad in deed."

This is no longer true.  I had a very dear 44 year old (female) friend who literally worked herself to death (died from a heart attack) working 2 jobs, doing physical labor, to save her home from foreclosure.  She was "working through" a modification, and no matter what she did, it was wrong.  First she didn't make enough, then she made too much, then she made too much from the same employer, then because she had to work two jobs, there was insecurity on the behalf of the servicer because she couldn't guarantee that she could work two jobs for the duration of the mortgage.  To make a long story short, when she passed away, the grandparents of the children thought the house would be paid for through her life insurance, and that they could either sell the home or rent it out and use the proceeds to put the 3 children through college.  Well, nope, not on your life.....You see, there are "fees", and the life insurance policy only covered the "principal and interest" due at the time of her death!!  The house will be auctioned off on September 24th.

Moral of the story?  The blood suckers will follow you to the grave to strip you of any equity, so you may as well fight to the death and at least go out knowing you fought for what is yours.  


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Wall Street Banksters have already planned for lethal toll of MSF on victims' lives with a new product called Collateralized Death Obligations, similar to the other CDOs we've come to know. 

Wall Street Pursues Profit in Bundles of Life Insurance?

 

Buying up lapsed life insurance policies that the owner of the policy fails to make payments on or wishes to sell for cash in hard times, they plan to bundle up and securitize these policies.

 

There are concerns of fraud, that some life settlement companies have gotten people to enter into insurance contracts for the sole purpose of on-selling them.

 

From the New York Times:

After the mortgage business imploded last year, Wall Street investment banks began searching for another big idea…

The bankers plan to buy “life settlements,” life insurance policies that ill and elderly people sell for cash — $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person. Then they plan to “securitize” these policies, in Wall Street jargon, by packaging hundreds or thousands together into bonds. They will then resell those bonds to investors, like big pension funds, who will receive the payouts when people with the insurance die.

The earlier the policyholder dies, the bigger the return — though if people live longer than expected, investors could get poor returns or even lose money.

Either way, Wall Street would profit by pocketing sizable fees for creating the bonds, reselling them and subsequently trading them…..

The idea is still in the planning stages. But already “our phones have been ringing off the hook with inquiries,” says Kathleen Tillwitz, a senior vice president at DBRS, which gives risk ratings to investments and is reviewing nine proposals for life-insurance securitizations from private investors and financial firms, including Credit Suisse.

“We’re hoping to get a herd stampeding after the first offering,” said one investment banker not authorized to speak to the news media.

Sound familiar ?
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The Equitable One
This deserves a thread of its own Blossom.
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Lionel Tribby
"Kathleen Tillwitz, a senior vice president at DBRS"

Gee... This wouldn't, by any chance, be the same Kathleen Tillwitz who so often was associated with rating Fairbanks Capital related/serviced trusts for Fitch Ratings - would it? I seem to recall one rating around '01 for Contimortgage, in particular, that caused no small amount of uproar several years ago...

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4 Justice Now
h gosh:
 
I truly didn't mean to say or imply that someone could or should count on their life insurance to pay off your mortgage. I only mentioned it to portray just how very hopeless my friend had become. That said its very good that you have taken the time to let people know that even after death these blood sucking parasites will continue to do their utmost to screw their victims any and every way possible.
 
Personally, I believe they should be dealt with in a manner that would be appropriate for any other parasitic insect sharing their position on the evolutionary chain. One quick swat, and splat the biggest purveyor of death and destruction is no longer alive to continue spreading its misery, which they spent their entire life perfecting.
 
Well, In other words you (h gosh) are absolutely right: One might as well fight to the death, and at least then you can go out knowing you fought for what is yours. Thanks for keeping me honest on this one.
 
IMHO
 
V/r,
 
4J
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4 Justice Now
h gosh:

One other thing: I had meant to say, that I'm very sorry to hear of your friends passing.

V/r,

4J




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h gosh
4 Justice:

I was not offended by your post, but the words spoken by your friend were words spoken by my friend days before she passed away.  My rage and anger grows year after year - heck I've been fighting this since 9/11/01!!  I've seen how "corporations" are legally given the green light to rob, steal and plunder.  I've seen how the FTC completely ignored the fact that Fairbanks walked with millions and millions of dollars of illicit funds.  I've seen how the FTC felt that giving someone $850 was fair compensation for the illegal foreclosure of their home and the ruination of their credit; not to speak of the mental anguish.  I've seen how our government has not only bailed out Wall Street, but is accepting their explanation as to why the taxpayer has to pay their bonuses.  

I have yet to see any government entity, be it federal or state, step in and protect the one sole resource they are sworn to protect, and for which sole purpose they exist and that is the common man!  Without the common man, their is no state, there is no country!

Well, that's my rant for the day.  Happy Labor Day, and keep up the good fight.  Remember - the great are only great because we are on our knees.  Let us arise!

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O -

h gosh wrote:
4 Justice Now made this statement:
"My poor, exhausted friend did mention, just the other day that if he did happen to pass away, because of all the stress, etc. at least his mortgage would be paid in full (thanks to his life insurance) and his family would still have a home to exist in. How very sad in deed."

This is no longer true.  I had a very dear 44 year old (female) friend who literally worked herself to death (died from a heart attack) working 2 jobs, doing physical labor, to save her home from foreclosure.  She was "working through" a modification, and no matter what she did, it was wrong.  First she didn't make enough, then she made too much, then she made too much from the same employer, then because she had to work two jobs, there was insecurity on the behalf of the servicer because she couldn't guarantee that she could work two jobs for the duration of the mortgage.  To make a long story short, when she passed away, the grandparents of the children thought the house would be paid for through her life insurance, and that they could either sell the home or rent it out and use the proceeds to put the 3 children through college.  Well, nope, not on your life.....You see, there are "fees", and the life insurance policy only covered the "principal and interest" due at the time of her death!!  The house will be auctioned off on September 24th.

Moral of the story?  The blood suckers will follow you to the grave to strip you of any equity, so you may as well fight to the death and at least go out knowing you fought for what is yours.  


That's very very sad hg, is there anything we can do?  That Totally SUCKS!
 
 

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4 Justice Now
h gosh:

I've dealt with this crap for about two less than you have, and I'm already thoroughly disgusted, (all for pretty much the same reasons that you have given).

Unfortunately, I'm afraid at this point the only viable alternative left that might provide the kind/level of change necessary to correct this country's blatant fraud and corruption problem simply isn't legal from the government's point of view. But neither was about 95% of the B.S. they have approved and/or condoned over the past nine plus years.

I guess by now we all know that certain actions must take place, but where/how does one start, when it appears to be such a foreign concept especially for what once was a non-third world country. Very sad in deed. 
IMHO

4J
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