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.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
News we can use

Wall Street Breakfast: Must-Know News
Seeking Alpha - Feb 21, 2008
The market for SIVs evaporated after the collapse of US subprime mortgages saw investors shunning high-risk debt. SIV assets have dropped to $100B from a $400B peak in August.

Quote 0 0
I can't read this pdf

Judge Lloyd Zimmerman issues Order Denying Motion for Temporary Injunction and Expedited Discovery (pdf) in Judith Dreyer (Plaintiff) v. MGI PHARMA, Inc, et al (Defendants) on January 20, 2008.

Quote 0 0
O -
This house was a steal
Chicago Tribune - 9 hours ago
It's a story involving forged deeds, a corrupt title company and a South Side family that has been under investigation for mortgage fraud. Left holding the bag is Countrywide Home Loans, the nation's largest mortgage lender and a company whose ...
 
New Hampshire Homeowners Decry Fee Skimming by Some Mortgage Servicers
American Chronicle - 8 hours ago
"Predatory lending" is protected by NH Consumer Protection Law. But the servicing of the same loan is not if it is serviced by a national bank or its local branch.
 
 
Gastonia Woman Loses Home to Foreclosure But Gets It Back
WRAL.com - 3 hours ago
Her husband died four years ago, and since then she's lived alone in her home. By August 2007, she'd fallen behind on her mortgage payments. Wilson contacted Ocwen Loan Servicing when she couldn't pay her monthly bill. "I called them and told them my ...
 
Congress to Examine Housing Proposals
The Associated Press - 3 hours ago
Lawmakers also plan this week to question several high-profile mortgage and banking executives about industrywide losses and lavish executive-compensation packages.
Ch 11 judge mulls mortgage lender fees BusinessWeek
Foreclosure prevention plan under attack CNNMoney.com
Charlotte Observer
all 99 news articles »
 
Are 'Wolves of Wall Street' pulling us down?
Helena Independent Record - 15 hours ago
Who else but the “Wolves of Wall Street” would think of loaning money to homebuyers who are poor credit risks, then pooling these subprime mortgages and issuing securities that pay the cash flows from the underlying mortgages to the holders of the ...
Quote 0 0
derail bankruptcy bill
91 Community Groups Ask BofA to Halt Foreclosures of Countrywide ...
FOXBusiness - Feb 21, 2008
The 91 California community groups, many of whom serve homeowners threatened with foreclosure as a result of predatory subprime loans, are asking Bank of America to develop a plan that outlines exactly how the Bank will help their customers avoid ...
 
Rachel Dollar Testifies on Mortgage Fraud
National Mortgage News - Feb 26, 2008
based law firm Smith Dollar PC and mortgage fraud schemes expert, testified on Feb. 13 before the Senate Special Committee on Aging at a hearing titled, “Foreclosure Aftermath: Preying on Senior Homeowners,” according to the Mortgage Bankers ...
Banking lobby tries new argument to derail bankruptcy bill language The Hill
all 2 news articles »
Quote 0 0
More Litton BULL
``A premium is being placed on quality servicing capabilities for which Litton is very well known,'' Michael DuVally, a spokesman for Goldman in New York says. He declined to comment further or to make Litton executives available for an interview. ``This is not the time for profiles to be raised,'' he says.
 
Quote 0 0
Anyone wishing to comment on the Bloomberg article can contact the writer at (212) 318 2000...

If they'd only do a little background checking on the corps. they mention i.e. Litton, Clayton, etc....Somehow, I don't think Clayton looks as good when you mention their name in the same sentence as "NY investigation, immunity and cooperation."
Quote 0 0
Forgotten houses?
City sues lenders over forgotten houses
Buffalo News - 1 hour ago
Baltimore has sued Wells Fargo & Co., accusing the lending giant of discrimination and predatory lending in minority neighborhoods.


Ohio on front line in US housing meltdown
Reuters - Feb 25, 2008
Cleveland's city council passed an anti-predatory lending ordinance in 2002. But it was preempted by a state law that blocked municipalities from enacting such legislation.
 
Obama Finance Chair Tied to Sub-Prime Disaster
Institute for Public Accuracy (press release) - Feb 28, 2008
He said today: "The Pritzkers like to say they did sub-prime lending to help the disadvantaged, but it would be more accurate to state they ran a very large nationwide predatory lending operation. They approached people who already had homes and ...
 
State police finish fraud training
The Hillsdale Daily News - 17 hours ago
The Michigan State Police announced the successful completion of a two—day mortgage fraud investigation and prosecution training
Quote 0 0
Wall Street :)

Wall Street Journal
Beware of Fannie's Help
Wall Street Journal - Feb 29, 2008
Far-out-of-the-money options are the bane of Wall Street. They offer revenue with very little chance of loss in normal circumstances.
Bad News Rocks Financial Firms Again, Triggering Big, Broad Market ... Investor's Business Daily (subscription)
all 126 news articles »
 
Subprime fiasco still sinking in
The Courier News - Mar 2, 2008
Wall Street's priapic money machine is run by an overstressed culture of cocaine cowboys with MBAs who believe they can turn lead into gold.
 
 

Wall Street Journal
Beware of Fannie's Help
Wall Street Journal - Feb 29, 2008
Far-out-of-the-money options are the bane of Wall Street. They offer revenue with very little chance of loss in normal circumstances.
Bad News Rocks Financial Firms Again, Triggering Big, Broad Market ... Investor's Business Daily (subscription)
all 126 news articles »
 
Illinois AG Madigan Announces 2007 Top 10 Consumer Complaints
All American Patriots (press release) - 3 hours ago
“As much as the mortgage industry would like to blame homeowners for the foreclosure crisis,” Madigan added, “we know from struggling homeowners who contact us that this crisis was driven by greedy lenders who resorted to any means necessary to place ...
 
Interview with Joseph Mason: No True Sale with Prime Brokers ...
Seeking Alpha - 2 hours ago
The trial lawyers will have a template to use to attack the entire mortgage industry. We understand that the Plaintiff's counsel has three more cases lined up against other lenders.
Quote 0 0
Obama Bubble

Wall Street Wounded
Forbes - 21 hours ago
The comments from the Fed chief focused on ways to find solutions for the raft of foreclosures in many areas in the country related to delinquencies and defaults on subprime mortgages with resetting rates. Bernanke urged lenders to offer more ...
Bernanke urges loan help Chicago Tribune
all 16 news articles »

The Obama Bubble: Why Wall Street Needs a Presidential Brand
Black Agenda Report - 5 hours ago
Wall Street created an artificial demand for housing (a bubble) by soliciting high interest rate mortgages (subprime) because they could be bundled and quickly resold for big fees to yield-hungry hedge funds and institutions.


THE RATINGS GAME: Merrill Cuts Citi Profit Outlook On More ...
CNNMoney.com - 20 hours ago
BOSTON (Dow Jones) -- Merrill Lynch lowered its fiscal 2008 earnings outlook for Citigroup Inc. again on Tuesday on expectations the Wall Street giant will be forced to take more big write-downs as credit markets worsen. Guy Moszkowski and M. Patrick ...
Quote 0 0
Congress wants to know

ABC News: Mortgage Millionaires to Answer to Congress

Quote 0 0
"RICO"

One couple remains in civil lawsuit - poconorecord.com - The Pocono Record

Quote 0 0
The litigation against these crooks involved making allegations without
the proof to back up testimony.

That is a rookie mistake. 

It is simple enough to make a list of issues:

Appraisals overstated the value of the house.

What proof do you have?

Appraisals 2 by (name) and date.  Amout of appraisal was $40K less
than the builders appraiser.

I would have used the third appraiser to compare the builder's v borrower's
to point out line by line what is wrong with the appraisal used by the
builder.

Need your appraiser for trial?

Not providing evidence to the court proving your allegations are true is a devastating error.

Make a list of issues and for each one decide what evidence is needed to
prove your allegation.

It is too bad the other three didn't prove their allegations and relied upon
what the judge considered hearsay.

Dee

Quote 0 0
O -

You are right about that. Sounds like the lawyers need to shape up...Or Ship out. Hard lesson to learn, And we know who pays.

Quote 0 0
More Probes

Illinois Probes Mortgage Firms - WSJ.com

Quote 0 0
Clinton and Obama
Predatory lenders staff Clinton, Obama campaigns
Party for Socialism and Liberation - Mar 8, 2008
Their family's wealth comes from corporate banking and lending. The Pritzkers were key architects of the enormously profitable sub-prime predatory lending that led to the current mortgage crisis. Clinton and Obama represent the same war-mongering ...
TRAIL MIX: LA 'Times' Predicts Candidates Based on Length of Last Name Editor & Publisher
all 2 news articles »
Quote 0 0
Bulls EYE!

ReviewJournal.com - Business - LV at center of mortgage-fraud bull's-eye


LV at center of mortgage-fraud bull's-eye

Official says feds come 'in droves' to investigate chicanery

Mortgage fraud and associated predatory lending practices have become the focus of criminal investigations in Las Vegas, which is quickly emerging as the mortgage fraud capital of America.

"The FBI has come to Las Vegas in droves," said Debra March, director of the Lied Institute for Real Estate Studies at University of Nevada, Las Vegas. "I've never seen this many FBI people here."

The FBI has carried out a number of investigations in Las Vegas, uncovering schemes involving 14 financial institutions. Some of the tactics include artificially inflating home values and forcing desperate buyers into adjustable rate mortgages that they eventually can't afford.

One FBI agent said Las Vegas is just the vanguard in a growing trend of mortgage fraud and expects similar discoveries, though less extensive, across the country in the next year or two.

"I think this is only the tip of the iceberg, not just in Las Vegas but all around the country," FBI special agent Scott Hunter said in February on National Public Radio. "One of the local detectives I work with said he used to get a complaint a month. Now they get several a day."

Nevada now ranks second behind Florida on the Mortgage Asset Research Institute's Fraud Index, a report that examines the current state of residential mortgage fraud and misrepresentation in the United States.

The report found that the areas of employment history and claimed income continued to be the most common types of fraud in 2007 loan originations.

Applications accounted for 60 percent of mortgage fraud in 2007, followed by verification of deposit (26 percent), tax and financial statements (20 percent) and appraisal valuations (16 percent). The total exceeds 100 percent because most incidents involve more than one type of fraud.

Terence Dickinson, a real estate development attorney from Michigan now living in Las Vegas, said 70 percent of subprime borrowers have fallen prey to fraudulent lending scams. Some of it involves speculation by lenders. Within weeks, mortgage companies sell loans to each other, sometimes increasing interest rates along the way, he said.

Federal law requires a lender to send a Notice of Transfer of Servicing to the borrower when mortgage payments must be made to a new loan servicer, but many "lending thieves" simply do not follow the law, Dickinson said.

"If you are a homeowner and were not aware that your adjustable-rate mortgage would consistently rise to the extent that it has, now it is a fixed rate which you cannot afford to pay and you lose your house," he said.

Conditions in the mortgage industry for the last half of 2007 made the year one for the record books, the Mortgage Bankers Association fraud report said. There were 46,717 suspicious activity reports during the year, compared with 35,617 in 2006.

Overall, 2007 marked the lowest volume of mortgage loan originations since 2002, the highest number of delinquencies and foreclosures, rapid shutdown of the nonconforming secondary lending market and hundreds of closures of mortgage originators.

"The current market conditions, compounded by mortgage fraud, are having a detrimental impact on our entire national economy," David Kittle, chairman-elect of Mortgage Bankers Association, said in a statement from Chicago, where the association is holding its annual mortgage fraud conference.

Many are at fault in predatory lending, said Cory Frey, senior loan officer for Southern Fidelity Mortgage in Las Vegas.

There's the mortgage bank that employed the originator to place a certain loan with a borrower, a loan that was "doomed should the market miss one step, let alone trip and fall on its face as it just did," he said.

There's the borrower playing the market who had to buy, despite his or her ability to pay back the obligation, just so they could realize a future return. And there's the loan officer who, with no hesitation, would do anything to make a buck and not explain certain parameters, Frey said.

"Much of what I encounter among today's dazed and confused borrowers is that many were simply not aware or did not understand their loan's features, such as negative amortization or its adjustable terms," Frey said. "Somewhere along the line, whether it be during the initial application or at the closing table, these borrowers were either not explained or did not care to understand the exact features relating to their loan's low payment."

Large institutions were advertising rates and payments to the unassuming public as if they were standard 30-year, fixed-rate mortgages when in fact they were not, he said.

"Not in any way, shape or form do I intend to place the burden on the borrower," Frey said.

Contact reporter Hubble Smith at hsmith@reviewjournal.com  or (702) 383-0491.

Quote 0 0
Write a reply...