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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In the beginning of 2008, my monthly escrow payment went from $300 a month to almost $800 a month on a miscalculation of escrow amounts from the prior year and a half by the servicer. Initially using my some savings and my tax refund to cover the difference, the $500 increase became too much.

I contacted my servicer WAMU regarding a loan modification in June 2008 in anticipation of not being able to continue much longer to make the extra $500 payment. In September 2008, I was declined a modification because I was not late on my payments.

I was told in order to get a modification I needed to be behind on my payments. Shortly after I could no longer afford to make the extra $500 payment so I fell behind and resubmitted my modification request hoping to get assistance.

I started saving the amount of the original payment before the $500 increase each month to reinstate the loan once a modification was approved. Calling week after week lead to hours of aggravation. I would get transferred from one department to another then eventually get disconnected. Never was I able to speak to anyone that could be of any assistance and finally gave up.

I did not hear back from them about anything until March of 2009. They requested new financials faxed to them within ten business days as stated in their written request. The documents were sent TWICE. Every time I called to confirm if they were received I was told I was not allowed to talk to my negotiator unless she called me. Then I get a letter dated exactly ten days after the first letter stating that I was denied for not submitting the new financials. Not ten business days, ten days.

Their original letter was dated two days before it was post marked and conveniently arrived on a Friday afternoon. That eliminated seven of the ten days they allowed. All the info was initially sent in on the following Tuesday (day 8 ). On day 10, again not ten business days, ten days, a message was left stating they still have not received the financials, so they were sent in again. It was the same run around as usual. Sounds like it is the servicers standard operating procedure.

About two weeks after receiving the decline notice, I get a letter from the FLORIDA DEFAULT LAW GROUP, the biggest foreclosure mill in FL, stating it is attempting collect the entire balance of the mortgage. It stated that WAMU is the servicer and JP MORGAN CHASE is the creditor. I found this interesting so I started doing some research.

Up until 04/19/09, the county clerk of courts showed my original mortgage document with AMNET MORTGAGE as the lender. On 04/20/09, an Assignment of Mortgage was recorded by the clerk of court naming JP MORGAN CHASE as the assignee / mortgage holder. Here is where it gets interesting. The assignment states that MERS officers acting as nominee for AMNET MORTGAGE (assignor) assigned, transferred and conveyed the mortgage to JP MORGAN CHASE. According to my research, AMNET MORTGAGE is no longer in business so how could it have officers, plus I am not even sure they are legally the current holder of the mortgage since MERS is involved. Better yet, the signing officers for MERS as nominee for AMNET MORTGAGE are Section Managers for JP MORGAN CHASE. I discovered this by googling their names. After doing further research I found these same officers of MERS were acting as nominee’s of MERS for multiple other lenders assigning mortgages over to JP MORGAN CHASE

So my questions to you are do you think AMNET owned the mortgage before assigning it to JP MORGAN CHASE?

More importantly, is it legal for JP MORGAN CHASE to use its own employees as a MERS nominee to assign a mortgage from another lender (AMNET) to itself?  In my opinion there is some major fraud going on here.

Any other insight you can offer would be appreciated.




Hello Michael,

Take a look at the letter that Florida Default Law Group sent to you and see if it contains your validation rights under the FDCPAFDLG is a debt collector and subject to the FDCPA.  A consumer has thirty-days from receipt of validation notice to request validation and FDLG is prohibited from continuing collection until providing proper validation.  I would send a CMRRR to the debt collector with something to the effect of ‘‘please accept this as formal notice that I dispute the amount of the debt and am requesting verification of the debt per the Fair Debt Collection Practices Act including a written itemized transaction account history of all payments and charges and evidence that your client has the right to collect on this debt by way of the original promissory note.”

The foreclosure complaint has probably already been filed.  That seems to be the foreclosure mill modus operandi as if that means they have complied now with the requirements of the FDCPA. 

All of the questions that you’ve raised are valid questions to ask at the litigation stage which sounds like it will be soon.  Not only are there issues with the assignment, but bear in mind that the original promissory note must be endorsed concurrently along with the assignment for it to be a valid transfer.

Read: Do You Remember Your Assignment, Lost or Destroyed Note, Securitize Me & Foreclosure Defense – File An Answer!

Thanks for the questions and hope this helps,


This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.

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I have a mortgage with Countrywide Home Loans. Not only have they added fees that have no explanation, but they have literally made any partial payments that I have disappear.
 In 2007, they started foreclosure proceedings on my home and I was only a payment and a half past due. But they took my  partial payment balance and created late fees and posted it there and other mysterious places. They charged me 1,800.00 in legal fees, for what, I don't know. We never went to court. I never even talked to an attorney. They refused to give me any kind of invoice so that I could see where my $3,800.00 was posted. Anyway, that was then this is now.
 In December of 2008, I became past due on my mortgage and  set up a re-payment schedule. I have been holding to that schedule until January 20, 2009. I made my $1,150.36 payment.  I dropped it off at the branch. I have a receipt for the payment (the canceled check).  
Countrywide posted it to my Home Equity Line of Credit. I  found this out by a man coming to my home wanting to save me from foreclosure. I called Countrywide to find out what was going on and they said I never made my January payment.

Then she stated that I was not in foreclosure process as of yet, but I would soon be. They had already filed a default with the county assessors office. They did this March 23.  I received the first intent to accelerate letter dated March  27. This letter said that I had until the end of April. But  they have already filed for default.

Finally the rep said that it had been posted to my equity  account. I said that's easy to fix just move it back. She refused, saying that I would have to prove that it was a Countrywide error. I faxed her copies of my canceled check with my home loan number on it, a copy of the receipt and my re-payment agreement.
She called me back several hours later only to say that she still would not move the payment stating she could not quite make out the account number on the memo field of my  check. I told her to look at the clear very large receipt.

She still refused to move the payment. She transferred me over to a Robert Tate and he said he would move the payment back to were it belonged and remove all the Attorney fees that they instantly added. Problem solved.

Then when I made my March payment, it never cleared. I just received it in the mail yesterday with a letter stating that they will not accept this payment; they want this huge enormous amount of  money to cure the default. They are trying to say that I am 6 payments past due! I just about died.

They don't care that I had a re-payment agreement and was keeping up on the payments until they screwed one up. I need help. I am getting nowhere with them.
Everyone that I have talked to in the State of Utah says the same thing; mail in a complaint and someone will get back to you in 6-8 weeks. Well, I only have to the end of the month. I just don't know were to start. Can you please help me or lead me in the right direction to find help?

I would so much appreciate it.

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It sounds as if you are at the beginning of a difficult row to hoe. There likely is not a quick fix. I suggest the following:

1) Find competent legal counsel.

That can be quite difficult to do as the issues invovled are an area of law very few atty's are knowledgeable about. There are some but they seem to be few and far between. If you find one you may not be able to afford the retainer, and further fees. So....

2) Read the Rules of Civil Procedure in your state and prepare to defend yourself.

If you able to find a knowledgeable and affordable atty you will still need to do this in order to know if he/she is doing the job you're paying them to do.

If you don't then you'll be doing the defense yourself. There are a number of elements to a lawsuit. It isn't rocket science, but the proper things do have to happen in the proper time. The only way to ensure that such happens is to read and know the rules.

3) Continue researching the issue, AND potentially useful defenses, AND counter claims, AND filing a complaint of your own.

This site is a good source of information. There are others.

4) Correspond with other pro se litigants. My experience shows me that they/we are the people with the most knowledge and information in re these issues.

Those not involved directly are not aware of what really is happening, what the laws really say, the numbers of cases determined people are winning, and merely have short soundbite answers and explanations. Typically they will view you as a nutcase tilting at windmills. Pay them little heed as they aren't informed.

Even people you would expect to be informed aren't (atty's, bankers, brokers, judges, etc.).

Once you begin to become knowledgeable and versed in the realities and the law you will come to understand that in deep ways.

This is a battle you can win. Keep your chin up. And remember, you'e toougher than they are.

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Dear Digger,
   For what it is worth, Amnet was a wholly owned subsidiary of Wachovia
which was purchased 12/31/2008 by Wells Fargo for 5c/$.
   WaMU was purchased for pennies on the dollar by JP Morgan Chase, and
WaMu stockholders are suing JP Morgan Chase and the FDIC for selling them
out so cheap.
    Amnet did my Mortgage and Note in Florida. Amnet made MERS the
holder of the mortgage as nominee for Amnet. It is clear that Wachovia
was bundling Amnet Notes together and selling them to investors as CDOs,
so your Note was probably securitized and it is doubtful that JP Morgan
Chase will be able to produce the Note, so you may be in luck! WaMu is
merely the sevicer of the loan in your case, and WaMu is embroiled in a
legal dispute with JP MOrgan Chase, so it could be that you are being
caught in the cross fire of a corporate war. I hope you are in a Judicial
foreclosure State so you can mount a good defense against foreclosure.
If I were you, I'd pay taxes and insurance directly and escrow the rest!
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What they're pulling on you is classic, carefully scripted Mortgage Servicing Fraud.

Go directly to the Federal Trade Commission website tonight, and file a complaint.  It's the simplest complaint form I've ever seen and just copy and paste your post above.

Then stand back and watch the stuff hit the fan.
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    According to the web site "MAKING HOME AFFORDABLE.GOV", the "debt to
income" should be 31% of your gross (pre-tax) monthly income. This is for loans held by Fannie Mae and Freddie Mac. FHA loans are also under consideration for this "modification" by a new law pending in Congress.
    For example, if your monthly payment for PITI is $870/mo. and your
monthly income is $2,000, your debt to income ratio is 44% so you should
be able to get your payment reduced to 31% (ie $620/mo) for a savings
of $250/mo. You don't have to be in default to take advantage of this
program, so it could be worthwhile for those on the verge of foreclosure.
    You need to contact your loan servicer and apply for this if it fits your
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