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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Just fullfilling a promise to Larry Litton I made years ago! With a lot of help by them!
This litigation is already larger than ENRON!
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Elements of this strike me as beyond bizarre:
Mortgage Insurers Lend A Hand To Save Homes. “Mortgage insurers [are helping] keep people in their houses. [Like] kick in cash to help borrowers catch up on their house payments. One company doesn't even ask for the money back; Partnering with credit counseling agencies to contact borrowers who have fallen behind on their payments. Stationing employees in lenders' offices to speed up workouts. Calling borrowers directly to negotiate payment plans and modifications… MGIC, the biggest mortgage insurer by volume, asks lenders for lists of insured borrowers who haven't returned calls or letters. If MGIC contacts the borrowers, they try to negotiate workouts. Mortgage insurer Genworth calls borrowers after they have missed two or three payments.”  (Seattle PI, June 13th)
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thanks Gum Shoe, MGIC isn't going to help its all bull,
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With the Special Meeting just days away, MGIC stock is sliding further into the abyss.  The recent announce of 50 Billion in "Reinsurance" is an acknowledgment of two problems, future loss's that are expected, and a security interest to show financial stability.  The second remains in serious doubt 
With 5% of its written premium going to be turned over to the "Re-insurer" for the next year or two years, you might as well write this off as a loss.  With no less than 7 Class Action Suits filed against MGIC its only a matter of time before they are consolidated maybe into two class's some and those alleging Fraud, maybe consolidated also into another group. 
A company that's showing loss's, and further loss's, that failed to inform investors in a timely way of problems with CBASS/Litton Loan is in serious problem now, the cost of the reinsurance of 5% of its premium, its no wonder why MGIC raised its premium a few months ago, they were planning for this.  So if they were planning for this, they know more than they are telling investors!  To purchase reinsurance of 50 Billion, is not done in a few days, it would have taken a few months to underwrite, and approve! 
So again, the MGIC management has been less then forthright with timely information about its financial condition!
CBASS/LITTON LOAN were the downfall of MGIC!  And its board of directors knew this years ago! I am sure D&O suits are the next step of litigaiton.
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MGIC falls below 8 dollars a share!  Just days before the "Special Meeting" the floor is falling out from MGIC, serious legal troubles now plague MGIC and its Officer and Directors.  Its now serious either take over time or Chapter 11, Which way are they going to go now?  
Culver and Lane each are looking at serious D&O litigation coming, and all mostly because of Litton Loan! Will they give up Larry and Larry Jr. to Feds, and IRS?  maybe?
The investors and stockholders are livid at the deception of the Board.  Look out for this quarters loss's!   It could just be enough to push them over and need Chapter 11 protection!
No pity here from them!  Im sorry for their loyal employee's that believed the lies and deception,  I just wonder how much Governor Doyle is going to help? 
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June 2008

here's some more useful info on LVNV Funding and the Sherman Financial group;

 From Comments made to the FTC on Proposed FCRA Dispute Regulations by  Resurgent;

 "Background on Resurgent: Resurgent is a servicer of distressed consumer debt and reports information related to those debts to the consumer reporting agencies as requested by the debt purchaser. Account updates are submitted to the three national credit reporting agencies (CRAs) on a monthly basis. Because of the status of the accounts serviced, reporting is conducted as a factoring company in accordance with the rules outlined by the Consumer Data Industry Association (CDIA) an interpretations offered by the major credit reporting agencies. "

 A Factoring Company, My A__, LVNV Funding is considered a debt collector under the purview of the FDCPA; Federal courts have concluded that a person purchasing a debt after default and whose principal activity was the collection of debt was a debt collector within the purview of the FDCPA. See, for example, Kimber v. Federal Financial Corp., 668 F. Supp. 1480

Background on Sherman Financial Group; Sherman Financial Group started  by Tony Ettinger, owns a wide list of subsidiaries and after being  registered as a corporation in many states, has become a Delaware corporation. It is an integrated company that purchases, services, resells and secures distressed and performing debt, including, but not limited to, credit card receivables, telecommunications receivables,
 student loans, mortgage deficiencies and all types of bankruptcy debt.

Sherman is a company engaged in purchasing and servicing receivable portfolios acquired at a discount, and originating and servicing  credit card receivables. The company consists of numerous asset holding and operating entities throughout the United States and in  Mexico City, Mexico.

The director of Sherman Financial is Scott Silver and he is listed as one of the managers of LVNV funding on the state of Nevada government  website in the corporation search. It also gives an address of 200  meeting St, STE
206 Charleston, SC, which is also the same address and suite # for  Sherman Capital Markets LLc, which Scott Silver is also a manager of.

 Scott Silver is listed on an OCC filing when Sherman Financial Group purchased Marin Bank in California. Marin Bank subsequently moved to Las Vegas Nevada and changed its Name to Credit One Bank.

 Credit One is one of the largest issuers of Visa credit cards in the United States and is a wholly owned subsidiary of Sherman. Credit One currently offers only unsecured Visa and MasterCard credit cards.  Credit One’s target market is (was) sub-prime borrowers who desire to either build or repair credit and ultimately become eligible for increased credit availability. Customer contact is made by telephone,  through the mail and via the Internet.

 Sherman paid Radian Group LLC $278 million for common and preferred shares of Sherman representing about 21 percent of the company.  Sherman paid MGIC Investment Corp. $240.8 million for common and preferred shares that represented about 16 percent of Sherman. (We’re talking publicly traded ( NYSE) mortgage insurers on sub-prime loans)

 Charleston, S.C.-based Sherman generated revenues of $1.05 billion in 2006, according to MGIC’s 2006 annual report filing with the SEC. Sherman contributed nearly $122 million to MGIC’s pretax income last  year, Michael Zimmerman, MGIC’s vice president of investor relations, told earlier this month.

1.05 Billion? How many consumers did they rip off to get that? The scale of this is unbelievable. How many times have they violated the  FDCPA, the FCRA & the FACTA to get this amount ?

Let’s see, mortgages, insurance, credit, debt collection, New York offices, three paper corporations in Delaware, banks in Las Vegas,  Brazil and Mexico. The CT Corporation system that they use as Registered Agents has offices in Reno, Nevada and is headquartered in Chicago. They report forgiven debts on 1009-C forms to the IRS, when  they have only paid pennies on the dollars; how do they report the profits? Structured to shield the higher ups form law enforcement.  Harrasment, illegal debt collection practices, extortion.  If this was the 1950’s, I’d say it was the Mob.


June 2008

Sherman Financial Group, LLC owns Credit One Bank, visa and mastercard. LVNV Funding, LLC is one of the many names of Sherman Financial Group, LLC. I have been looking into the addresses LVNV Funding LLC has listed with many state Corporation Divisions. In my state and many others, they have it listed as 625 Pilot Rd. suite 2 Las Vegas Nevada 89119.   585 and 625 Pilot road is owned by FKC Properties and this is what I have found.....

Hughes Airport Center Portfolio consists of two (2) single-tenant flex office buildings located in the Hughes Airport Center of Las Vegas, Nevada. 100% occupied by Credit One Bank, a national credit tenant, the two buildings are currently being used as office/call centers.

If you compare the dates that Credit One Bank moved into 585 & 625 Pilot Rd. it will match the date they changed their principle address with the corporations division.

So this just goes to show that LVNV Funding is hiding behind one of it's many names in an attempt to elude consumers.

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Just two days before a special stockholders meeting, MGIC resigns a 300 million dollar line of credit, that changes the entire repayment package!!! 
MAGIC IS IN DEEP CRAP!  Limited to 300 million on a credit line, that now appears to exhausted, and a repayment of another 100 million this fall, MGIC is really near its end!   The proposed changes by the special meeting on the 27th of this month could be the final nail in the coffin for them.  Im sure the D&O policy for MGIC is going to be exhausted from the legal fee's.  I don't see MGIC surviving. Back in the early 1980's BALDWIN put MGIC into chapter 11, I'm sure its coming again.
MGIC should they be forced to file chapter 11, has no one to blame but its management of CBASS/LITTON LOAN, and SHERMAN Capital!   MGIC management failed to listen to warnings of the impending problems!  They are responsible, and must assume it.  
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MGIC beginning to prepare for filing of chapter 11?  The word coming from inside the company is, that it is.  
After this past weeks actions, of diluting the stock by perhaps as much as 20%, and the coming second quarter reports, Chapter 11 appears to be the only viable defense, as the newly purchased "Reinsurance" for 50 Billion, would not and does not cover the first and second quarter loss's.  If it does not cover the third quarter loss's MGIC for sure will end up having to file Chapter 11,

And still no sign of the State of Wisconsin!  Better find that Roll's Royce!
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MGIC falls to below 5.50 a share today, down more than 22% from Friday.
In the past such falls in value have resulted in the company being removed from the trading boards, that may happen.  Its almost a certainty that Chapter 11 maybe filed before the end of the year, unless significant changes are not made to save MGIC.  The OCI should be watching very close now, on MGIC's financial stability during the second and third quarters!

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What is going on with MAGIC STOCK?  Do they know? 

MGIC Clarifies Special Shareholders Meeting's Results

June 30, 2008 4:39 PM ET

MILWAUKEE, June 30 /PRNewswire-FirstCall/ -- While MGIC Investment Corporation does not normally comment on market rumors, the Company understands there have been reports in the media that it has plans to offer additional shares.

As previously announced, at a special meeting of shareholders on June 27, 2008, the Company's shareholders approved an amendment to the charter increasing the number of authorized shares of Common Stock by 160 million shares.

The Company's April 29, 2008 press release announcing the record date for this meeting said that an increase in the number of authorized shares would be on the agenda for the special meeting. That press release also said the Company had no plans to issue shares of Common Stock other than for awards under its stock incentive plan and noted that the Company had outstanding Junior Subordinated Convertible Debentures convertible into Common Stock.

The proxy statement for the special meeting, noting that the Company had shares reserved for issuance on conversion of its Junior Subordinated Convertible Debentures, said, "At the date of mailing of this proxy statement, we did not have any plans to issue any additional shares of Common stock, other than the possible issuance of reserved shares under our 2002 Stock Incentive Plan." The proxy statement was mailed on May 29, 2008.

The Company's plans, as communicated in our April 29 press release and May 29 proxy statement, have not changed. At June 30, 2008, we still have no plans to issue any additional shares of Common stock, other than as referred to above.

The Company is not undertaking any obligation to update the information in this press release. Interested parties should not rely on such information as being current at time other the time at which this press release was issued.

About MGIC

MGIC (, the principal subsidiary of MGIC Investment Corporation, is the nation's leading provider of private mortgage insurance coverage with $221.4 billion primary insurance in force covering 1.5 million mortgages as of March 31, 2008. MGIC serves over 3,300 lenders with locations across the country and in Puerto Rico, Guam and Australia helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality. Copyright 2008 PR Newswire

So at the end of the day, what is going on with MGIC Stock?  Issued, not issued, going to be issued?  Im sure the number of class actions filed will sort these details out.  In the meantime, the company  continues to be "looted" by managment, looking to financial security before it goes belly up I guess.

I wonder what the second quarter report is going to be, well not good Im betting because MGIC just went to the 300 million credit limit, a few weeks ago, and then purchased a "Reinsurance" policy for 50 Billion, at 5% of its annual preium, so the "Better than expected..." for the first quarter, may have just been a set up for all the "Larger than expected..." loss's for the second quarter, just that it happens after the annual meeting, and speical June meeting?  BK chapter 11 plans on the table!  Its unfortunate as far back as I know, auditing reports from 1998,  nine years ago warned of this!

Naming CBASS and LItton Loan!

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As predicted months ago, and in some case's years ago, predicted the looming Bankruptcy of MGIC.  I am sure MGIC is preparing to file chapter 11 very soon, they do not, and have not the reserves to cover the short term loss's that are going to be announced. 
In order to cover them, more accounting using smoke and mirrors is going to occur, claims being paid will be pushed back, and delayed. End result, further litigation, and "Bad Faith" failure to pay law suits.
Booking claims late, in some case's denying them for reasons of technical problems with the claim.  End result later payments on claims.  This again will result in further additional claims.
I could name three or four more "industry methods" to prevent payment of claims, but those two are usually the most common.
MGIC appears to be betting two years out on the market, and using their cash flow to try and stay just out of Chapter 11, however the Management failed to respond when learning of the crisis, years ago!! 
MGIC investors should know, that Curt Culver and Jeffery Lane were personally advised of the problems that LITTON LOAN and CBASS were creating.  They had personal information on the inside fraud, and criminal misconduct, but choose to refer it to the Litton Loan General Counsel, Janet McClure!!!!,  I have the emails!  
MGIC most likely will be forced to file chapter 11 before the end of the year, and will also be removed from the trading boards! 
Mean while, millions are still being looted from MGIC, just like BALDWIN did to them in the early 80's and the Wisconsin Commissioner of Insurance is sitting on the sidelines, or he too playing golf with Governor Doyle and Curt Culver?
My next prediction is Chapter 11 before the end of the year, then that will make it complete. 
From the beginning, at Litton Loan, CBASS, MGIC and RADIAN!   This network of manufactured foreclosures will have come to an end, and what will be left is only litigation, against the skeletons of the companies, and then the personal suits against its officer and directors, to pick the bones of.
$4.16 MGIC a share!

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Big Mac


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Zacks Analyst Blog Highlights: Washington Post, Fannie Mae, Freddie Mac, PMI Group and MGIC

July 14, 2008 7:19 AM ET announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Washington Post WPO, Fannie Mae FNM, Freddie Mac FRE, PMI Group PMI and MGIC MTG.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Fridays Analyst Blog:

News Not Good for Wash Post

More than one-third of The Washington Posts WPO revenue comes from newspapers and broadcasting businesses that are in secular decline. As readers migrate to the Internet and TV viewers seek other forms of entertainment, ad dollars shrink. The poor economy and consequent weak ad spending are exacerbating the deterioration, with no visibility to improvement.

WPOs education and cable divisions are two bright spots, well-positioned to continue generating double-digit operating income. Nevertheless, the stock is trading at 17x 2009E EPS, a substantial premium to our estimate of its 5-year growth rate, at a time of high uncertainty.

The Spanking of Fannie (& Freddie)

The shares of the two giant Government Sponsored Enterprises (GSEs), Fannie Mae FNM and Freddie Mac FRE have been in an absolute freefall over the past week. We have long warned that the attempts to put the burden of the mortgage crisis on the GSEs was misguided and would eventually put the two of them in peril.

If mark-to-market accounting is used, it seems very clear that they are very undercapitalized. Even though the underwriting standards at the GSEs were generally better than for the private label mortgage backed securities that have already blown up, in retrospect they have proved to be too loose. In part this was because FNM and FRE relied on private mortgage insurance from firms like PMI Group PMI and MGIC MTG which now appear to be on the brink of insolvency themselves.

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