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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H. Gosh

Countrywide deal provides options for those struggling

It may help 30,000 Texas homeowners

Copyright 2008 Houston Chronicle Austin Bureau

Oct. 6, 2008, 10:45PM

AUSTIN — An estimated 30,000 Texas homeowners with mortgages from Countrywide Financial may get friendlier loan terms through a settlement announced Monday to help rescue those in over their head.

The deal, involving the company and several states, allows eligible homeowners to modify terms of their loans to make monthly mortgage payments more affordable.

The loan modification program affects Texans who are in default or likely to default on subprime mortgages from Countrywide, a financially struggling company recently acquired by Bank of America.

Possible help measures include:

• Lower interest rates to as low as 2.5 percent for up to five years.

• Conversion of adjustable-rate mortgages to fixed-term loans.

• Reduced principal loan amounts.

• Suspension of foreclosure for eligible homeowners who are in default but want to stay in their homes.

Distressed Texas homeowners will get up to $350 million worth of benefits as part of an $8.4 billion settlement involving deceptive lending practices.
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 They need to QUIT asking,,, and make the servicers DO THE RIGHT THING!

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Frank Wants Systematic Approach to Foreclosures

House Financial Services Committee chairman Barney Frank, D-Mass., is demanding that other major servicers follow Bank of America's model ( They have a model )  and adopt plans for "immediate mass modifications" to stem the flood of foreclosures. Rep. Frank also put 10 major banks and servicing companies on notice that they are expected to report to his committee by Oct. 17 on their plans to adopt a systematic approach to loan modifications. "Hope Now and other industry initiatives have had too little impact to meet the large and growing need for widespread relief," Rep. Frank says in a letter to the companies and industry trade groups. The committee chairman stresses the BoA/Countrywide settlement agreement to modify nearly 400,000 subprime and payment-option mortgages should serve as a template for the rest of the industry. "It is essential that every mortgage servicer firmly commit to implement plans for immediate mass modifications based on, or stronger than, the measures BoA/Countrywide has undertaken," Rep. Frank says in the Oct. 8 letter.
(They didn't mention the names of the banks and servicing companies)
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Frank is deliberately disingenuous. He and his staffers know all too well that their buddies on Wall Street and the trustees are holding all the marbles in making or not making loan mod decisions. He helped them get where they are and now he wants to make noise trying to cover up the congressional responsibility.

The bond holders can sit there and demand cash flow from the servicers. IF they don't get it and their investments are worthless, they turn to Washington to cover their markers, but unlike Countrywide they have contracts (PSAs)  that can't be modified and Frank and the other hand-maidens of the financial industry in Washington know it but don't want to admit they let it get that way.

Servicers will keep foreclosing because it builds the REO sale inventory which generates cash flow on sales to pay the trustee in the coming months. It's always been that way.

Because very few people understand how the game is played, he and the other fraudster supporters can try and use announcements like this BS as political ammo.

It won't matter who gets elected or doesn't. He who has the gold makes the rules and politicians dance to their tune as long as they need to be reelected.


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We must remember those who voted for this piece of $hit on election day.

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O -

So who do we vote for then?

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O - wrote:

So who do we vote for then?

ANYONE other than an incumbent:

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Texas AG tells lenders loan modification efforts must increase

10/14/2008 1:51 PM
By Scott Sabatini

Greg Abbott Sucks!
AUSTIN --Texas Attorney General Greg Abbott proposed a series of foreclosure prevention measures to the state's three largest lenders in a meeting on Oct. 9.

"Mortgage lenders, loan servicers and public officials must work cooperatively on behalf of Texas homeowners who are affected by the looming housing crisis," Abbott said. "Because of the housing industry's tremendous economic impact, resolving this issue is important to the Texas economy's continued growth and expansion. We believe that the proposals laid out in today's meeting offer real solutions that will help keep Texans in their homes."

Abbott met with representatives from Countrywide Mortgage, Houston-based Litton Loan Servicing and Dallas-based EMC Mortgage.

Abbott's plan involves five measures, according to a press release issued by the Texas Attorney General's office on Thursday. Lenders should provide long-term solutions to customers with adjustable rate mortgages. Lenders must also work to mitigate loans first, collect second.

Brown urged companies to engage customers in a non-threatening manner before sending delinquent homeowners to collections.

Next, Brown wants the lenders to create an in-house committee to address consumer complaints and to improve communication with customers.

Finally, Brown's plan calls for lenders to waive penalties and fees in working out a long-term solution to enable homeowners to save their homes.

Brown said his office would follow up in 30 days seeking specific signs of action on his plan.

Across the country attorneys general are taking aggressive action to stem the tide of foreclosures.

Attorneys general from 10 states are coordinating efforts to shore up the country's mortgage crisis following news that the rate of foreclosures continue to rise.

Last week a task force, The State Foreclosure Prevention Working Group, issued a letter to 16 mortgage lending companies urging them to follow the loan modification model put forth in the multi-state settlement with Countrywide Mortgage Corp. The working group includes attorneys general from Illinois, California, Arizona, Ohio, Texas, Iowa, North Carolina, Colorado, Massachusetts and Michigan.

"It has become clear that the scope and scale of this foreclosure crisis," the letter written by Iowa Attorney General Tom Miller stated, "demands a more efficient response than handling individual borrower cases one at a time."

Illinois Attorney General Lisa Madigan and California Attorney General Jerry Brown negotiated a deal with Bank of America to settle predatory lending lawsuits from 11 states against Countrywide Financial Corp., which Bank of America acquired on July 1.

The Countrywide loan modification program includes the suspension of some foreclosures for eligible borrowers with subprime and adjustable rate loans, waiver of late feels, and increased counseling to ensure loan modifications efforts are taken place before foreclosures occur..

A study commissioned by the task force and released last week discovered that despite the rapid increase in foreclosures, mitigation efforts have actually decreased in the last year. It found that eight out of 10 homeowners facing foreclosures are not "on track for any loss mitigation outcome," Miller wrote.

Illinois Attorney General Lisa Madigan said the report makes clear the need for action.

"Unfortunately, this report shows that while the foreclosure crisis continues to intensify, lenders have not effectively sustained their efforts to help borrowers avoid foreclosure," Madigan said. "Now, nearly eighty percent of borrowers who are seriously delinquent are still not getting the help they need to try and save their homes."

The letter states that the time for comprehensive action has come and that all lenders must develop loan workout program that will curb the trend of foreclosures, which according to the report, has grown to the point that 38 percent of all homeowners with a subprime loan were facing foreclosure as of May 2008.

"The message," Madigan said, "from this report is clear: lenders must develop a broad and systematic approach to putting homeowners into affordable loans that will stave off the devastating effects of foreclosures in our communities."

Facts in the report showed a grim picture of the success of loan counseling efforts to date. Loan modification efforts for at-risk homeowners dropped by 28 percent from January to May, the lowest since 2007.

"We urge you in the strongest possible terms," Miller wrote in the letter, "to adopt a comprehensive, effective and streamlined loan-modification program as soon as possible."

Lending institutions that were sent the letter included Citi, Chase, Wells Fargo ands HSBC among others.

Illinois took action last week to bolster loan modification efforts when it passed the Homeowners' Rights Act. The act, which takes effect on Jan. 1, 2009, will require lenders to provide borrowers with a statement of their legal rights and options when they are served with a foreclosure suit.

This statement must advise homeowners that they can sell their home, refinance or pay off the loan during the redemption period, according to the attorney general's office.

Meanwhile in Southern California, San Diego City Attorney Mike Aguirre is expected to announce that he will sue other lenders - the exact lenders have not been released - who used subprime loans and predatory lending practices to contribute to the housing crisis.

Aguirre was the first city attorney to sue Countrywide Mortgage Corp. and an active proponent of the need for a foreclosure moratorium to force banks to do more to modify loans.

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