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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Mortgage fraud on a massive scale
Diane Francis
Financial Post

Bad guys never rest. And the latest, greatest example of fraud on a massive scale involves the subprime mortgage, or ABCP (asset-backed commercial-paper) mess.

A combination of fraudsters, the Mafia and a lot of financial intermediaries on Wall Street have pulled off something bigger than Enron, the savings-and-loan mess and Lenny Rosenberg's 1983 apartment flip all combined.

At its root is a U.S. investment-banking and mortgage-brokerage system that's broken, had little government oversight and was rife with crooks. Last, but not least, most will get away with this because the globalization of capital markets allowed them to export the crime to Canada, Britain, Europe and elsewhere.

Here's what we have now: U.S. homeowners with mortgages they should never have obtained who cannot make the payments because interest rates have gone up and who cannot sell because house values have gone down.

Some foreclosures are happening but it's a presidential election year and even George W. Bush, the U.S. President, has talked about back-stopping homeowners so they don't lose their residences. Besides that, those holding mortgages cannot foreclose entire neighbourhoods, mostly modest ones, without destroying values for years.

When the savings-and-loan debacle swept the United States in another real estate recession, the properties underlying non-performing or sub-standard loans on properties were seized by Washington and sold off slowly over years. To do otherwise would flood the real estate market with properties and cause real estate depression in certain regions.

On the other end are the "rich" victims. These are the investors who bought bundles of these mortgages on what's euphemistically referred to as an "opaque" market. They bought junk along with OK stuff, but it was all neatly passed along and packaged as more creditworthy than it really was.

In August, the world realized what happened and debt markets crashed at once, forcing central banks and big banks to band together and halt a panic. Here's some information about the fraud techniques: - Mortgage broker licences were handed out indiscriminately and many of these companies sprung up, hiring people, often uneducated immigrants or crooks, and splitting handsome fees with them. - Initial lenders granted mortgages higher than the properties' values to people who wouldn't qualify for a mortgage in Canada or Europe. - Bogus valuations were involved, as happened in the Rosenberg fraud in Toronto, where $325-million worth of apartment buildings were "valued" and mortgaged for $500-million by trust companies in on the scam. - Mortgages were "sold" at discounts to a series of packagers, mostly on Wall Street, who took small fees and passed along the loans in bundles with good loans all over the world. - The rich institutions and funds that ended up with this junk were somewhat greedy or naive or both. How safe could they have been, given the high interest rates they were yielding?

Finger-pointing is rampant south of the border. U.S. Senate banking chairman Chris Dodd of Connecticut said subprime lenders were "predatory" and the government was negligent. But at the end of the day, this is a very simple, but huge, fraud due to the lack of proper U.S. mortgage brokerage licensing.

                                © National Post 2007
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4 justice now
I'm sorry, just a pet peeve that I possess on the subject.
Oh well FWW:


I don't believe it's fair, or even actuate for that matter to label the MS Fraudsters of today as Mafia. In my opinion they are by far much worse than the Mafia of the past could have ever imagined. The Mafia as I once understood it, actually had a code of ethics and it at least attempted to exist without deliberately harming innocent people and or their families, particularly if they were not part of the organization/trade. I believe it was quite common for many who were in control of the Mafia to possess a number of redeeming characteristics, both within and outside of their communities. Most Americans living outside of their criminal realm were treated with respect and were not harmed, as much as possible. Many who were a part of the organization were often rewarded for their loyalty and bravery.
In contrast... those who are responsible for today's MS Fraud have none of the aforementioned redeeming characteristics or values. They are outright cowards who prey on those who are least able to defend themselves against their criminal intent. It's clear they have no remorse when it comes to stealing and destroying people’s lives, young or old, female or male, it doesn’t matter. They simply hide behind their corporate names, as they plunder from a far. They don't even have the courage to face their victims, as they steal their homes and destroy their lives. And even after they have been discovered for what they truly are, they still don't even have enough honor to admit the truth.
My Opinion Only.
R, 4J

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No, there's at least two of us!!!

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4 justice now

Thanks! It's comforting to know I'm not the only one who this opinion on the subject.


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4 justice now

I meant to say: It's comforting to know I'm not the only one who has such an opinion on that subject.

Sorry about that,


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I'm afraid to say, I agree.  I have said many times that we would be
better off dealing with the Mafia.

At least you know what to expect from them.

Who knew, it would be the entire mortgage industry from agents, originator,
secondary right on down the pipeline with the mortgage servicers are
comitting which should be classified as fraud.  Instead we see deceitful,
and all other words that mean the same as fraud being used to describe
their actions.

It's disgusting.


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4 justice now



Where are the Untouchables when we all could really use them? Unfortunately, I doubt even they would stand a chance against such a wide spread organized, criminality. It appears to be so entrenched, so pervasive, well funded, politically connected.
The raping and pillaging of today’s working class members and their families, and society in general has just become entirely too profitable. Especially, for those greedy, totally immoral scum bags, who's criminality almost seems infinite, they possess no conscience or backbone, no will, no ethics or morals.
They simply have no aversion to harming even the most innocent of child. And even beyond that, it seems that even the media has done a fair bit of their bidding, or has at least has remained perceptively ignorant to a point of total absurdity.


My Opinion.


R, 4J  

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