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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Jury Awards GI $20M in Mortgage Case


A federal jury awarded a Fort Benning Soldier more than $20 million on Monday in a case against Coldwell Banker Mortgage -- an amount the plaintiff's attorney called necessary to get the company's attention.

Jurors in the case of David Brash v. PHH Mortgage Corp., doing business as Coldwell Banker, deliberated for about six hours before ruling in Brash's favor. During the six-day trial, jurors heard that Coldwell Banker improperly reported Brash, 29, to credit bureaus which led to a "serious delinquency" on his credit report, that it refused to answer his questions or correct his account and damaged him emotionally, physically and financially, his attorneys and court documents say.

"The jury was aggravated as to how he was treated," said Charlie Gower, an attorney who represents Brash. "I think the jury was just very mad because they were attacking David Brash the Soldier and basically calling him a liar."According to Brash's December 2009 complaint, the U.S. Army sergeant bought a North Columbus home in November 2007 and got his mortgage through Coldwell Banker. Brash set up automatic monthly payments because he was on active duty, and no problems occurred for almost 18 months.

That's when Brash started getting numerous phone calls and letters about missing or making late payments. Brash tried several times through phone calls and letters to explain himself, and he was told a number of times that Coldwell Banker would correct the error, his suit states.

Jurors heard recordings of calls Brash made, recorded by PHH Mortgage, in which Brash would be on hold for 30 or 40 minutes at a time with overseas customer service representatives, said Gower and Teresa Thomas Abell, another attorney representing Brash.

"The longest time was 55 minutes -- listening to music or nothing," Gower said.

In May 2009, Brash got a letter threatening to report his supposed delinquency to credit bureaus. Abell said her client was adamant that he not be reported, and the suit states Brash spoke with one representative for more than an hour about Coldwell Banker's error.

The problems continued, and Brash hired Gower, who wrote a formal request to PHH Mortgage's president asking for written confirmation that Brash's account was current. Brash never received a response, Gower said, though adjustments were made to Brash's account.

Brash kept getting notices alleging he failed to make his payments, and he hired Gower again who sent another written request. Gower said that the Real Estate Settlement Procedures Act restricts a mortgage company from reporting a customer during the 60-business day period when they must respond to such a written request.

In November 2009, Brash was reported as being "serious delinquent" to credit reporting agencies.Gower says in a release that PHH Mortgage accused Brash at trial of improperly filling out forms. An attorney for the mortgage company couldn't be reached late Monday afternoon.

Jurors awarded Brash $1 million in compensatory damages plus $575 for out-of-pocket expenses. They awarded Brash $350,000 for attorney fees. The $20 million award was in punitive damages, Gower said.

"The evidence showed that PHH Mortgage serviced approximately 1 million mortgages valued at $163 billion," Gower states in his release. "The jury verdict on punitive damages was necessary to get PHH Mortgage's attention."

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This guy will never see the $20m.

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One Question... after deducting his electronic payments for over TWO YEARS while on active duty... what paper work was missing? What paper work did he not fill out? 

This will be an interesting "appeal" on the part of PHH. Looking forward to it!
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Will this courageous man ever see his judgment?

PHH can't simply waltz into most appeals courts, having received a final judgment on the merits, without posting a bond for damages.  Certainly the Defendant is large enough to post a surety bond, or, a bond backed by corporate cash in a CD.

The problem for PHH is they will lose uon appeal and the entire amount of the bond will then be paid to the plaintiff. 

Sure, you hear all the time that such and such a company is going to appeal a huge verdict but that appeal is prefaced by the posting of a bond in almost all cases following a judgment at the trial court level.

For example.  Here is a link to a case in Arizona (Maricopa County) that I tracked for years.  It revolves around one title company stealing the accounts of another as well as liability of the persons involved.

The losing parties ended up with a judgment against them for $ 35,000.000.00 (yes, 35 million).  There was an appeal of course, ending up in the Arizona Supreme Court which lated reduced the judgment to about 6 million.

If you look at the docket, in mid-2007 when appeals were filed, the Defendants all had to file bonds.  A couple of years later, the docket reflects the judgment 'satisfed'.  From where was the judgment satisfied (paid), the appeal bonds.

There is no free ride to an appeal for a money judgment.  Generally the only way to avoid filing an appeal bond is if the winner agrees to waive bond.  I am sure the plaintiffs lawyer will insure an appeal bond is required of PHH.  If you do not file an appeal bond, or the parties agree to waiver, you risk (n this case a most certain)  enforcement of the judgment during pendency of the appeal.

He'll see his 20 million or whatever the courts end up allowing.  Given that he is or was active military and PHH appears to have violated the rules and statutes, I doubt their will be much sympathy at the appeals court.

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PHH has been an under the radar "privet label" coverage funder of fraud for Fannie Mae for decades! Thats why PHH's former CEO is now the CEO of Fannie Mae!
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