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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Ed Cage

 

Southern Star Mortgage to Dissolve

 

Filed under: Uncategorized — admin @ 4:09 pm

 

December 28, 2007, NYC - Southern Star Mortgage Corp. is
looking to dissolve in the wake of the country’s mortgage
lending crisis and a general slowdown in the real estate
market, TheDeal.com reported yesterday. East Meadow,
N.Y.-based Southern Star said in papers filed in the U.S.
Bankruptcy Court for the Eastern District of New York in
Brooklyn that it is hoping to complete an orderly wind-down
of its business while under protection from creditors.
Southern Star’s operations were primarily carried out in
New York, New Jersey, Florida, California, Connecticut,
Texas, Pennsylvania, Massachusetts, Maryland, Illinois and
North Carolina, and the company originated and sold
residential mortgages, as well as sold the servicing rights
of its mortgages to institutional end-loan investors. The
company filed for Chapter 11 on Dec. 21.

 

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Ed Cage
 
http://feeds.feedburner.com/~r/TheTruthAboutMortgagecom/~3/210026132/

National City to Cut 900 Jobs 02Jan08

cuts

National City said today that is plans to eliminate 900 jobs as it shutters its flagging wholesale mortgage division.

The layoffs are in addition to the previously announced 2,500 job cuts, and will affect about fifteen percent of the company’s remaining 6,274-employee mortgage workforce.

“We remain committed to the mortgage business, as the home mortgage is an essential consumer product,” said Peter Raskind, chairman, president and chief executive officer of National City.

“However, it is clear that the origination volumes will be lower going forward, and we are configuring our mortgage business to operate profitably in that environment.”

The company said loan volume will likely fall more than 50 percent in 2008 as the company focuses on lower-risk offerings through its retail channel.

National City now expects to make about $15 billion to $20 billion in mortgage loans in 2008, compared to $43.9 billion through the first 11 months of 2007.

The Cleveland-based bank will also cut its quarterly dividend to 21 cents per share from 41 cents, breaking a 15 year run of steady increases.

“It’s part of a broader set of strategies to manage the capital position, and navigate through a very difficult period for the entire industry, and beyond,” Raskind said.

“Pressure in the housing market is not going to abate any time soon.”

And in an effort to shore up capital, the struggling bank revealed that it has hired Goldman Sachs as an adviser.

Last summer, the bank merged its home equity unit into National City Mortgage, closed its correspondent lending division, and eliminated the origination of all nontraditional loans.

Shares of National City were down 90 cents, or 5.47%, to $15.56 in early afternoon trading on Wall Street, marking a fresh 52-week low.

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I like that last part where they sold the "mortgage servicing rights". Does that mean they still own or retain the Notes? Will these Notes be part of
the bankruptcy estate or were they "true saled" away.

In the New Century Bankruptcy, it is apparent they sold the servicing rights
to Ocwen and US Bank became the trustee over the income from these
Notes. However, news reports state that New Century hypothecated Notes
to the Big Banks in order to get more cash to lend. It was when the Big
Banks cut them off that they were forced into bankruptcy. It appears
the Notes still belong to New Century but are being held as  collateral
by the big banks.

When Ocwen tried to fabricate a default against me and US Bank, Trustee
filed a foreclosure action, US Bank could not come up with the Note.
I think the Notes still belong to New Century although hypothecated
away and being held by the Big Banks.
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