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

http://www.ohiolemonlaw.com/mortgagefraud   

Mortgage Fraud Rips You Off

Legitimate mortgage lenders are relying more and more on third-party loan brokers. These brokers look and sound like regular mortgage companies but their sole job is to set everything up and then sell the mortgage to one of the bigger mortgage companies for immediate cash. They never intend to actually collect mortgage loan payments from the consumer at all. They are just a middle man and that has created a ripe opportunity for fraud.

Usually between $2.5 and $3 trillion dollars goes thru mortgage loans each year. With that much money involved, it’s no wonder that thieves are looking for ways to make money out of it. Mortgage fraud matters because it directly affects the housing market and that has a big impact on the nation’s economy.

Mortgage fraud usually involves a "material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase or insure a loan." That’s a fancy way of saying some brokers (and others involved in the mortgage process) “lie, cheat and steal.”

The FBI estimates that 80 percent of all reported fraud losses involve mortgage industry insiders.  Mortgage fraud can involve equity skimming, property flipping, and mortgage related identity theft.

If you are a victim of fraud, we can help. Call us at 1-888-331-6422 or email us today for a Free Fraud Case Review!

Equity skimming is a tried and true method of committing mortgage fraud. Today's common equity skimming schemes involve the use of corporate shell companies, corporate identity theft, and the use or threat of bankruptcy/foreclosure to dupe homeowners and investors.

Property flipping has been around for ages. Here the criminals are usually educated and use identity theft, straw man borrowers and shell companies, along with industry insiders to hide what they are doing. Property flipping occurs when someone purchases property and then inflates its value by using false appraisals.

The artificially valued properties are then repurchased several times, each time for a higher price by crooks in league with the property  "flipper." After three or four sham sales, the properties are eventually foreclosed on by honest lenders. When the lenders lose money, your home mortgage rate can go up. Often flipped properties are ultimately repurchased in foreclosure for as little as 50 percent of what they were worth before all the flipping started.
Thieves make off with the money, the community sees abandoned homes and empty buildings increase, and honest homeowners’ property values go down. Everyone suffers.

Top Ten “Hot Spots” Mortgage Fraud Incidents (per capita)

The FBI reports that 26 different states have significant mortgage fraud problems with Georgia and Florida being the worst, but including California, Nevada, Utah, Colorado, Missouri, Illinois, Michigan and South Carolina in the Top Ten Mortgage Fraud States.

SIGNS OF MORTGAGE FRAUD

  • inflated appraisals
  • exclusive use of one appraiser
  • increased commissions/bonuses - brokers and appraisers
  • bonuses paid (outside or at settlement)
  • higher than customary fees
  • falsified loan applications
  • buyers told/explained how to falsify the mortgage application
  • requested to sign blank application
  • fake supporting loan documentation
  • being asked to sign blank loan forms of any kind
  • requested to sign other types of blank forms
  • purchase loans that are really refinancing
  • purchase loans that are disguised as refinances (they often require less documentation)
  • promises of a short term investment with guaranteed profit or re-purchase
  • promises of a percent of the profit by being a “temporary” owner (used to flip property)
  • multiple "holding companies" in the chain of ownership

If you are a victim of fraud, we can help.

Call us at 1-888-331-6422 or email us today for a Free Fraud Case Review!

Common Mortgage Fraud Schemes

Property Flipping - First they buy the property. Then they get a fake appraisal at a much higher value. Then they sell it again quickly. The part that is illegal is the faked appraisal. A house worth only $25,000 might be appraised for $100,000 in this kind of scheme. The out of town mortgage company doesn’t realize that it is giving away its money until the loan payments don’t come in and the foreclosure starts and a legitimate appraiser goes out to the house and realizes what has happened and by then it’s too late.

Silent Second - The buyer of a property borrows the down payment from the seller with a second mortgage or “iou” note that no one discloses to the mortgage company. Sometimes the price can be inflated to equal the “iou” and the seller never tries to really even collect the iou because they got the sales price they wanted in the first place. The mortgage company thinks the buyer has invested their own money in the home when, in fact, the buyer doesn’t have a dime down.

Straw Man Buyers - The real identity of the borrower is hidden because a friend or family member acts like they are the one who is buying and borrowing and their credit history is used to get the loan. This same practice frequently occurs in new car sales and may have actually started there.

Stolen Identity - A faked or stolen identity may be used on the loan application. The actual loan applicant may have stolen someone else’s identity information and applied for the loan in their name. You could end up with a home in your name and never even know it. Of course, when the foreclosure happens and a judgment is taken against you, then your credit record can be messed up for years.

Inflated Appraisals - Simply put, a crooked appraiser gives an inflated appraisal to the crooked broker (who usually gives extra money to the appraiser for it) and the broker sets up the loan from there, misleading the frequently out of town mortgage company into thinking that the property is worth far more than it actually is.

Foreclosure Rescue Schemes - The thief finds homeowners who are in default on their home loan or whose house is already in foreclosure. Then they convince the homeowner that they can save their homes if they just sign over the deed to them and pay some “up front” fees. Often the crook then remortgages the property, pockets the fees (and maybe some of the mortgage money) and takes off, leaving the homeowner no better off than they were in the first place.

Equity Skimming - Here the thief often uses a straw man buyer, faked income documents, and faked credit reports, to get a mortgage loan in the straw buyer's name. After the closing, the straw man buyer signs the property over to the investor. The investor rents the property out, pockets the money, does not make any mortgage payments and foreclosure takes place several months later.

Air Loans - A mortgage on thin air. This one shows you just how stupid, or greedy, some mortgage companies can be. Here a broker literally “makes up” everything. They invent the existence of borrowers and properties, establish fake “accounts” for payments, and creates fake escrow accounts too. From the outside, it all looks legitimate, as long as the mortgage company is outside of town and never drives over to look at the non existent house. The crooks even may set up an office with a bank of telephones, each one used as the employer, appraiser, credit agency, etc., for verification purposes. Then when the non existent homeowner refinances their mortgage, and the honest mortgage company calls the crooks to verify the loan, and everything else, they get suckered in big time.

Tips to protect you from Mortgage Fraud

  • Use a referral for real estate and mortgage professionals. Also check local government offices to see if the people you are dealing with have the required licenses of industry professional.
  • If it sounds too good to be true, it probably is. A promise of huge and easy profits in a short period of time should be a warning to you.
  • Watch out for strangers who offer to help you with refinancing or saving your home, or who use high-pressure sales techniques.
  • Look at recent comparable sales in the area to learn the true values, and also public tax assessments can verify the value of local homes.
  • Be extra careful with legal paperwork. Understand what you are signing and agreeing to – If you don’t understand it then read it again. If you still don’t understand it, don’t take a chance on getting burned – talk to an attorney.
  • Look at the title history to see if the property has been quickly sold several times – a signal that the property has been "flipped" and the value falsely inflated.
  • Know the terms of your mortgage. Make sure the loan documents are accurate and complete.
  • Never sign any loan documents that contain blanks. It’s easy to rip off someone who signs blank documents.
  • Be careful of e-mails or internet ads that promise to wipe out your mortgage loan or give you easy credit or set up credit cards for you, but also ask you to sign up or pay an up-front fee. These kind of documents are often called Declaration of Voidance, Bond for Discharge of Debt, Bill of Exchange, Due Bill, Redemption Certificate, or other similar language. Warning: these documents are often faked and nothing but empty promises that will rip you off.
  • Remember: there is no magic cure to get rid of legitimate bills that you really owe.
  • Compare mortgage loan costs and be leery of lenders who tell you that they are your only chance of getting a loan or owning your own home.
  • Watch out for "No Money Down" loans. This is often just a gimmick intended to get you to buy something that you may not be able to afford in the first place. Also watch out for any loan officer or employee who alters your credit application in order to get you qualified for a loan. It can be against the law and land you in jail or bankruptcy court.
  • Don’t let anyone convince you to borrow more money than you can afford to repay.
  • Remember what your mother said: If it sounds too good to be true – it probably is!

If you are a victim of fraud, we can help. Call us at 1-888-331-6422 or email us today for a Free Fraud Case Review!

For more information about Ohio Consumer Law and mortgage fraud visit our Ohio Consumer Law site.

OFF - - - - - - - - - - - - - - - - -
 

Submitted by Ed Cage / ecagetx@tx.rr.com  /  972-596-4363


 


 
Quote 0 0
These kind of documents are often called Declaration of Voidance, Bond for Discharge of Debt, Bill of Exchange, Due Bill, Redemption Certificate, or other similar language. Warning: these documents are often faked and nothing but empty promises that will rip you off.
 
Ed,
 I admire everything you say for the most part on all of this...However, in doing more research than anyone could ever do for not being a practicing attorney I wonder if what is told is truth or fiction anymore...
 
Having always been an upstanding individual I thought by paying my bills could it be that attorneys, judges are so corrupt their all doing this? Seriously, here's a good example..Who is the fraud? The AMERICAN CITIZEN OR THE GOVERNMENT WERE SUPPOSE TO OBIDE BY? I'm honestly surprised theres not more bloodshed in the streets already. People who don't understand someone going POSTAL now possibly do.
 
Having been the EMPLOYEE SLAVE TO PAY FOR EVERYTHING and now not and seeing the true matters that back up the USC is biblical. If I hadn't heard all the horror stories and now seen them on the otherside I wouldn't of believed it...
 
Therefore if you ask me everyone needs to learn how to be their own lawyer and stand up on their own two legs to fight for JUSTICE PRO SE...Otherwise you could end up with once again with someone only concerned with their own best interests of lining their own pockets and no concern for whom their suppose to protect...
 
If a BILL OF EXCHANGE, OR REFUSAL FOR CAUSE are not LEGITITMATE there wouldn't be such things in exsistence..
Lawful Money

What does it Mean?Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes and Treasury bonds. Lawful money stands in contrast to fiat money, to wich the government assigns value although it has no intrinsic value of its own and is not backed by reserves. Fiat money includes legal tender such as paper money, checks, drafts and bank notes.  

Also known as "specie", which means "in actual form."
 
Investopedia Says...

Oddly enough, the dollar bills that we carry around in our wallets are not considered lawful money. The notation on the bottom of a U.S. dollar bill reads "Legal Tender for All Debts, Public and Private", and is issued by the U.S. Federal Reserve, not the U.S. Treasury.  Legal tender can be exchanged for an equivalent amount of lawful money, but effects such as inflation can change the value of fiat money; lawful money is said to be the most direct form of ownership, but for purposes of practicality it has little use in direct transactions between parties anymore.
http://lr-n-r.org/bnklettr.htm


Quote 0 0
Ed,

Check out this piece of information

http://www.suijuris.net/forum/banks-collectors-cras/13572-banking-muggles-101-par-value-dollar.html
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4 justice now
>*:


Quote:

I'm honestly surprised there's not more bloodshed in the streets already.


Believe me >*, you're not the only one. I've thought the same damn thing for years now. In fact, I sometimes wonder if they're actually putting sedatives in our drinking water (not really... but maybe?).
 
After all, there has been more than just a few times that I have enjoyed visualizing myself obtaining justice on my own, most likely because it's pretty clear by now it's the only way I will ever see it happen.

And, I do consider myself to be a fairly calm and rational guy, and I do Thank God that I only lost money (for the most part anyway). Now listen up Fraudsters: Tic-toc, tic-toc (;>.
 
R,
 
4J

Quote 0 0
Ed Cage


Dear >* or whatever your name is:

Please take note of this quote:
"The FBI estimates that 80 percent of all reported fraud losses involve

mortgage industry insiders."

 

Primary causes of the mortgage servicing fraud crisis we face are

naivety and complacency on our own part..  I was guilty of naivety when

I thought by going with Town & Country’s lower rate I could protect my

family from scams through my lifetime God given talent of being able to

sniff out fraudulent numbers from a mile away.. Famous last words.. As

always I immediately sniffed them out okay but seeking a remedy requires

a tenacious dedication as well as both time and money.. Fortunately I

have all three but the remedy I seek will require substantially more time

and perseverance than I planned on.

 

I also want to emphasize that those who think the DOJ or their legislative

representatives or the AG will bring these fraudsters to justice don’t realize

how overworked and overloaded these parties are with even bigger

problems than individual mortgage fraud. More importantly few realize

just how profoundly lazy and incompetent mainstream bureaucrats (not all

of them mind you) actually are.  Here I was covered because I understood

all of the above, but I still face injustices that will take more time/money

than most can give.

      Of course the mortgage fraudsters know this and exploit this vulnerable

loophole  at every opportunity. We let them get away with it.  Not “they”

let them get away with it.. Plug in “we” and you’re on the right track.

 

He who lies in bed and says to their spouse “they ought to do something

about mortgage fraud” is a prime candidate for losing their home and a lot

of money to boot.

 

                         If it is going to be, it is up to me.

                        2008 will be a much different year!

 

HNY!

Ed Cage  /  ecagetx@tx.rr.com  /  972-596-4363  

 
 
 
Quote 0 0
The operation of the DOJ is relegated to the Office of the President....the executive branch of government. It is the key tool that the executive branch has to compel the other two branches of government, the legislative and judicial branches to adequately and honestly perform their duties.

For example, if the Congress is not passing the legislation necessary to insure stability and due process (see the 5th and 14th Amendments to the U.S. Constitution) through proper enactments of necessary statutes, then the President can sign an executive order to the Department of Justice to bring a mandamus action in the U.S. Supreme Court to compel the congress to act.

By the same token, if the judiciary is not protecting the rights of the citizenry to their due process rights through rulings that ignore evidence brought before the court that prohibits a judgment from being entered in the name of a plaintiff that is not the real party in interest (ala Mortgage Electronic Registration Systems, Inc.) the court is conspiring with the plaintiff t(MERS) o deprive the defendant in a foreclosure action of the required identity of the real party in interest...which, under the U.C.C. (which is enacted in all 50 states' statutory framework) requires that the plaintiff prove that they have authority from the owner of the note to bring a foreclosure action.

Additionally, if the courts are ignoring indisputable evidence of payments having been made or of other evidence that precludes the court from
allowing the entry of a judgment in favor of the plaintiff, then the courts are acting as a co-conspirator with the plaintiff.

The remedy for courts that arrive at conclusions adverse to the defendant or to the rules of evidence is for the President to sign an executive order instructing the DOJ to hire enough competent personnel to bring an action against the judge as well the the plaintiff (if the plaintiff is not the real party in interest and if the plaintiff cannot prove their actual authority to act on behalf of the real party in interest) for conspiring to deprive the defendant in foreclosure of their rights to due process of law (see the 14th Amendment's due process of law clause) in violation of 18 U.S.C 241. The task force required to correct these deprivations to due process of law is not difficult to muster. The modus operandi of the perpetrators are always the same. The blueprint is either ignore the law or the evidence or both and render a decision beyond the boundaries of reason.

Prosecutions of judges, either federal or state, is required to return the rule of law to this nation and sanity to the broken court system. Presidential actions, as described above, in conjunction with Congressional legislation that brings a broken judicial system back to earth, is sorely needed. That is where a solution lies....not with thousands of dollars pored into defending fraudulent foreclosure actions so as to generate money for the private lawyer sector in detriment to our private citizens' property, life, and to a large extent, liberty.

We're tired of living in a corporatocracy that exists solely for the politically connected and deep pocketed. Its time the president took action without hiding behind a fictional apron of executive power limitations. The president has the power to do exactly as I've enumerated above. So, Mr. Bush, put the country back on the track to what it once was by signing an executive order that mandates the DOJ to bring action under 18 U.S.C 281 against conspirators that are depriving the citizenry not only of their property, but of the due process rights that the judiciary is depriving us of.
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4 justice now
Bishop:

Excellent post as usual! Unfortunately, I have little doubt that our current president will do nothing more than would be expected for those of his ilk.... absolutely nothing (Business as usual).

Thanks anyway!


R, 4J


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Ed Cage

REALLY excellent post Bishop!

4J: Although I'm a former GOP State Delegate and gave $200
to George W. Bush's campaign I am on record as saying just
how disappointed I was/am at GWB's cosmetic and narrowly
focused "lip-service" mortgage crisis legislation was.. 
 
However the truth is that there are a dozen causes of far
more significance that outweigh Bush's role in mortgage
servicing fraud.. Right at the top is *complacency* on our
own part!   

Ed Cage  /  ecagetx@tx.rr.com  /  972-596-4363  


Quote 0 0
Ed says:

Right at the top is *complacency* on our own part!  
 
Surely, you jest.
 
Dee 

Quote 0 0

I'm with you 4J

 
4 justice now wrote:
>*:


Quote:

I'm honestly surprised there's not more bloodshed in the streets already.


Believe me >*, you're not the only one. I've thought the same damn thing for years now. In fact, I sometimes wonder if they're actually putting sedatives in our drinking water (not really... but maybe?).
 
After all, there has been more than just a few times that I have enjoyed visualizing myself obtaining justice on my own, most likely because it's pretty clear by now it's the only way I will ever see it happen.

And, I do consider myself to be a fairly calm and rational guy, and I do Thank God that I only lost money (for the most part anyway). Now listen up Fraudsters: Tic-toc, tic-toc (;>.
 
R,
 
4J


 
 
Quote 0 0
Ed Cage

Dear ">*" or whatever your real name is:

(1) Re your quote, "I'm honestly surprised theres not more bloodshed in
the streets already. People who don't understand someone going
POSTAL now possibly do." 
      Mr ">*" I assure you this sort of saber-rattling suggesting there may
be illegal solution(s) and "someone" may flip out will not impress anyone.
Indeed it dilutes the effectiveness of those posting on the MSFraud forum.
Those of us who have been victimized are exercising our First Amendment*
rights in hopes of changing mortgage servicing fraud in 2008.   Legally.   
* Freedom of speech and expression and the right to assemble peacefully to seek lawful
remedies.. Rather than, "more bloodshed in the streets."

(2) Further Mr ">*" your post basis is in no small part focused on currency

values and betting on the intrinsic values of money via the commodities 

vehicle.. Although the value of the dollar is always a concern in any form 

of trade and commerce you are really not in the same zip code with the

horrors of hard core mortgage servicing fraud when you go down that money

value rabbit trail..  

                                _      _      _      _

       

In summary I reiterate what I previously said (below) concerning how we

must respond in 2008 in order to achieve a *lawful* remedy sans the

bloodshed:

"He who lies in bed and says to their spouse “they ought to do something

about mortgage fraud” is a prime candidate for losing their home and a lot

of money to boot.

 

                         If it is going to be, it is up to me.

                        2008 will be a much different year!"

 

HNY!

Ed Cage  /  ecagetx@tx.rr.com  /  972-596-4363  

 

Quote 0 0
Quote:
Originally posted by Ed Cage
However the truth is that there are a dozen causes of far
more significance that outweigh Bush's role in mortgage
servicing fraud.. Right at the top is *complacency* on our
own part!  

 
I am 100% with Ed on this one! 
 
It is the responsibility of the executive branch to enforce federal laws.
It is NOT readily apparent to me which federal laws are being BROKEN
by the mortgage servicers engaging in MS fraud (as opposed to
origination fraud).  And the very worst of the origination fraud --
the subprime meltdown -- coincided with the post 9/11 refocusing
of federal law enforcement efforts on counter-terrorism.
 
I really had NEVER carefully contemplated this problem until faced
with eggregious servicer dishonesty myself.
 
It would appear to me that RESPA is almost totally focused on
fraud relating to loan closings.  The two primary provisions of RESPA
dealing with servicing pertain to the procedures and duties associated
with sale and transfer of servicing and making inquiries of the
servicer by letter.  The legislation seems to implicity ASSUME
the honesty of the mortgage servicing industry.
 
This assumption was probably once valid.  The mortgage business
in America mostly evolved from community building and loan
associations which were very often non-profit and for many
years were largely free of any significant dishonesty.  Even the
savings and load crisis of the late 70s and early 80s was mostly
originally a consequence of INTEREST RATE MISMATCH rather
than credit risk.  It was only after the stock prices of thrift 
institutions were driven to next to nothing did a secondary problem
of unsavory and dishonest operators seizing control of insolvent
institutions occur.  This was allowed to happen due to reluctance
federal regulators to RECOGNIZE the extent of the failed institutions
at a time when deposit insurers lacked the resources to make
good on deposit guaranties. 
 
Similarly, the TIL law is mostly focused on loan origination.
 
Both RESPA and TIL are focused on dishonesty in loan
origination.  Of course, I would AGREE that the Fed was asleep
at the wheel with respect to TIL in regards to subprime lending.
But that would be Alan GREENSPAN, NOT President Bush.
 
Most of the illegality I have seen thus far would appear to me
to involve breaking os STATE LAWS.  It DOES appear to me
that local district attorneys and state attorney generals have
mostly been asleep at the wheel with regard to mortgage
industry fraud.  And from what I can see thus far, most of the
attorney generals who are in the news seem to be more eager
to pursue headlines than to actually look at the underlying
real problems.
 
It would appear to me that Congress is OVERDUE to revisit
RESPA.  Both houses of Congress are now controlled by the
Democratic Party, NOT the Republican Party.  I have NOT yet
seen ANY evidence of meaningful reform of RESPA or of 
similar legislation to correct the most eggregious mortgage 
servicing abuses.
 
By contrast, recent proposed Fed Regulation Z amendments
appear to me to go a long way in addressing many of the
origination excesses.
 
Some time ago, upon the announcement of the Fed's public
comment period on Regulation Z, I suggested that board
participants develop some written critique of the TIL /
Regulation Z amendments.  As far as I can see, NO ONE
(including myself) has followed up.

Admittedly, it is difficult for those involved in fights
for their homes to take the time to address the bigger
picture.  And those who have lost their homes have
even greater worries and distractions.

But in failing to take concerted action to address the
underlying legislative deficiencies, I think that we
can all be accused of complacency.  Which of you had
identified MS Fraud as a major issue in ANY recent state
or national election?  And who worked for or contributed
to a political candidate in the past election cycles?

Anyone who wants to blame President Bush for problems
relating to MS Fraud is just taking a cheap shot!  There
are a LOT of culpable political officials.  The culpability
of President Bush in the MS Fraud problem is actually
minimal.
Quote 0 0
~beenawhile
Some excellent posts on this thread.

I neither agree or disagree (but do mostly agree) with your comment Mr. War, however there is an explanation for these train of thoughts we have when discussing Bush.

"Anyone who wants to blame President Bush for problems
relating to MS Fraud is just taking a cheap shot!  There
are a LOT of culpable political officials.  The culpability
of President Bush in the MS Fraud problem is actually
minimal."


FIRST:  it is hard for the victim/fighter of MSF to understand how the President is not seeing these horrible activities happen to his Americans. <--- That's for the people who think he has no clue. This is for the people who think he is knowledgeable of the perpetrations;-----> It is not understood how the President of the United States could allow the Mortgage Industry to behave in the manner in which it does with the manufactured F/C's, surely his advisors speak of the Economical problems to him, & report to him what information they have retained concerning such large issues as the misbehaviors of the Mortgage Industrialization.

When one thinks that the Presidential Advisory Panels provide Bush with information, & his failure to Protect the Americans from these Industrialized terrorists results in the continuation of Record high F/C rates across America, & a fallen Economy due to the full circle of fraud recycled within itself, the BLAMING of BUSH begins.
 
Second: This also leads to beliefs of MSF sufferers; that Bush has full blown out knowledge of these deemable Criminal Corporations, as it was a FACT, that Ameriquest had already been Judged for its Fraudulent activities when BUSH APPOINTED ROLAND ARNALL AS AMBASSADOR TO THE NETHERLANDS.

It leaves an MSF sufferer to wonder what those reasons for the continued appointment of Ambassadorship would be.

Some of those questions might be.
Why did he not cancel the appointment of the Ambassadorship, until further research into the Company owned by the very appointee?

Why did he not; appoint another candidate for review of such an important position of Ambassadorship?

Was Bush advised against the Appointment of Roland Arnall?

What exactly were the REASONS for this particular person to be appointed as a Political Figure between the nations?

Thirdly: It is noted that many, many of these MSF companies have either Home Offices, or Offices in TEXAS. It has been mentioned several times on this board by others. Which leads sufferers (who already paranoid) to think that this must be some sort of TEXAN Conspiracy.


Now let me state that the paranoia comment includes me. I think we all suffer from some sort of paranoia related to our homes, the fees, the troubles, & the loss of our homes. Due to the threats, the collections, the fees, the letters, the harassment, we ALL HAVE SUFFERED from these MSF COMPANIES! So don't be insulted if you were referred to in the 3rd equation.

I don't think that anyone of us here "solely" blame BUSH for the Criminalized activities that haunt our lives, & the AMERICAN PEOPLE......... But it would honestly appear, that Bush is a man who could do something about the issues at hand, & has chosen not to do a thing.

I agree with you tenfold about others who should be held with the culpability of our current struggles, but those "others" remain, in the sectors of each STATES local Government, & in which case some are Federalized. This leaves, much blame for many persons, who are too many for a victim/fighter/sufferer to currently name, point the finger at or even consider a conspirator or co-conspirator in the activities of the fraud & the negligence to prosecute the Fraudulently Operating MSF COMPANIES.

I understand what you are saying; really I do. However, it is easier to identify Bush & his cronies as the culprits to the continuations of the manufactured Foreclosures, bankrupt home owners (due to the illicit fees) the destabilized economy & created homelessness.

So when Bush is mentioned in a Post, referring to negligence, or otherwise........... THESE WOULD ALL BE THE REASONS WHY.

Finally, in all I whole heartedly agree with you.

Note: there may be other reasons that I didn't think of.

If anyone would like to expound, upon this please feel free to do so.

 

 

Quote 0 0
Ed Cage

WAR wrote:
"I am 100% with Ed on this one! 
 
It is the responsibility of the executive branch to enforce federal laws.
It is NOT readily apparent to me which federal laws are being BROKEN
by the mortgage servicers engaging in MS fraud (as opposed to
origination fraud).  And the very worst of the origination fraud --
the subprime meltdown -- coincided with the post 9/11 refocusing
of federal law enforcement efforts on counter-terrorism.
 
I really had NEVER carefully contemplated this problem until faced
with eggregious servicer dishonesty myself.
 
It would appear to me that RESPA is almost totally focused on
fraud relating to loan closings.  The two primary provisions of RESPA
dealing with servicing pertain to the procedures and duties associated
with sale and transfer of servicing and making inquiries of the
servicer by letter.  The legislation seems to implicity ASSUME
the honesty of the mortgage servicing industry.
 
This assumption was probably once valid.  The mortgage business
in America mostly evolved from community building and loan
associations which were very often non-profit and for many
years were largely free of any significant dishonesty.  Even the
savings and load crisis of the late 70s and early 80s was mostly
originally a consequence of INTEREST RATE MISMATCH rather
than credit risk.  It was only after the stock prices of thrift 
institutions were driven to next to nothing did a secondary problem
of unsavory and dishonest operators seizing control of insolvent
institutions occur.  This was allowed to happen due to reluctance
federal regulators to RECOGNIZE the extent of the failed institutions
at a time when deposit insurers lacked the resources to make
good on deposit guaranties. 
 
Similarly, the TIL law is mostly focused on loan origination.
 
Both RESPA and TIL are focused on dishonesty in loan
origination.  Of course, I would AGREE that the Fed was asleep
at the wheel with respect to TIL in regards to subprime lending.
But that would be Alan GREENSPAN, NOT President Bush.
 
Most of the illegality I have seen thus far would appear to me
to involve breaking os STATE LAWS.  It DOES appear to me
that local district attorneys and state attorney generals have
mostly been asleep at the wheel with regard to mortgage
industry fraud.  And from what I can see thus far, most of the
attorney generals who are in the news seem to be more eager
to pursue headlines than to actually look at the underlying
real problems.
 
It would appear to me that Congress is OVERDUE to revisit
RESPA.  Both houses of Congress are now controlled by the
Democratic Party, NOT the Republican Party.  I have NOT yet
seen ANY evidence of meaningful reform of RESPA or of 
similar legislation to correct the most eggregious mortgage 
servicing abuses.
 
By contrast, recent proposed Fed Regulation Z amendments
appear to me to go a long way in addressing many of the
origination excesses.
 
Some time ago, upon the announcement of the Fed's public
comment period on Regulation Z, I suggested that board
participants develop some written critique of the TIL /
Regulation Z amendments.  As far as I can see, NO ONE
(including myself) has followed up.

 

Admittedly, it is difficult for those involved in fights
for their homes to take the time to address the bigger
picture.  And those who have lost their homes have
even greater worries and distractions.

But in failing to take concerted action to address the
underlying legislative deficiencies, I think that we
can all be accused of complacency.  Which of you had
identified MS Fraud as a major issue in ANY recent state
or national election?  And who worked for or contributed
to a political candidate in the past election cycles?

Anyone who wants to blame President Bush for problems
relating to MS Fraud is just taking a cheap shot!  There
are a LOT of culpable political officials.  The culpability
of President Bush in the MS Fraud problem is actually
minimal."

OFF - - - - - - - - - - - -
 

 

Bill I especially agree with these points you made:

 
(1) "I think that wecan all be accused of complacency.  Which
of you hadidentified MS Fraud as a major issue in ANY recent
state or national election?"

(2) "Anyone who wants to blame President Bush for problems
relating to MS Fraud is just taking a cheap shot!  There
are a LOT of culpable political officials.  The culpability
of President Bush in the MS Fraud problem is actually
minimal."


Ed Cage / ecagetx@tx.rr.com / 972-596-4363

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