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
Margaret
I am still relatively young, middle age I guess you could say. I have had back problems since I was ten years old & when I was 13, I went through a major surgery that left me relatively pain free for twenty years. During these twenty years I worked hard & did a lot of work that required a lot of standing, bending, lifting etc.....eventually I started my own business in 2001 when I moved to Florida. This all came to a halt in 2003 when my last good disc blew out, leaving bone on bone, & I began having complications due to the surgery I had when I was 13.

When this happened I was in so much pain I could barely walk. I continued to work in pain for a few years till I gave up my business. They wanted to do another major surgery on my back & I decided against it. I did not work for a period of two years due to my pain level & doing minor tasks left me exhausted. Through the grace of God, I found a job working from home as an IC; however I never do over 25 hours a week. Some weeks I barely get to 10 hours. My husband was always the bread winner of the house. He is also about eight years older than me. He served in the Navy for four years & was always a hard worker. He was in the IBEW Local 3 for almost 15 years before moving to Florida & we started our own business. When I could no longer work he started working as a manager of a large retail store.

Come to 2006 when my husband injured himself at work resulting in two surgeries over a period of three years. During this time we had health insurance, but since neither of us had ever filed a workers compensation claim we reported his injury. That started our ride to hell!!!

Both of us worked hard our entire lives, paid taxes etc....now when we need help we find road blocks at every turn we make. This last surgery on my husband the insurance carrier was so negligent in his care that his doctor told us he had a very small chance of healing correctly. Guess what, now we are screwed....they tell us he should be happy he got what he did & that is just how workers comp works. He now has a permanent injury that will affect his ability to find work.

I cannot begin to tell you how disgusted I am with our government. I worked for a long time as did my husband....applying for SSD is like begging for a hand out. To now find the corruption that is going on with these foreclosures it just makes me sick to my stomach.

When I began working from home I worked for a large grassroots firm. I did a lot of advocacy work on behalf of large corporations, such as the tobacco industry, healthcare industry, energy, legal reform etc....I touched base with Senators on a daily basis regarding these issues. Mucho money is spent to ensure certain bills never see the light of day.

Now, I find myself in the situation where working for these corporations churns my stomach. Needless to say, I no longer do that type of work, but you would be amazed at how money can influence the decisions of many appointed officials; however with the mortage industry I am shocked how there can be so much information & proof that these companies are essentialy thumbing their nose at the American People, yet it continues to happen. What we need to start a campaign to get letters, calls, media, newspaper, etc..to every Senator in the United States, from every person affected by this mess.

To hear because of the bottle neck of foreclosures in Florida the courts are denying people their right to be heard in a court of law is a disgrace & we as the people need to unite. I know many of us feel that we are alone, yet there are millions of us out there. Going through foreclosure or bankruptcy is not a taboo subject anymore. I know on my street alone just about every house has been or is in foreclosure.

How do we get something of this magnitude started is the question?

Quote 0 0
     I truly empathize with your situation.
Almost every mortgage written since 2000, which was securitized on Wall
Street, involved fraud. The fraud was in the inflated appraisal and in the inflated income statement of the homebuyer/owner.
     The motive for the fraud was the enormous yield spread premium earned
up front by the correspondent lenders (aka pretender lenders since they were
really more like brokers than lenders in that they lent none of their own money). For example, on a $140,000 appraisal, the correspondent lender
would borrow 96% (ie $134,400) at say 5% ($6720 interest) and then turn
around and lend 80% of appraisal ($112,000) to the homeowner/buyer at 6%
($6,720 interest). The difference, ($134,400-$112,000=$22,400) would go
to the correspondent lender. The yield spread premium on this transaction
is $22,400 to the correspondent lender. The broker would get 10% of this
figure, POC (paid outside closing) for selling a higher interest rate than the
borrower could have had (ie $2,240) in addition to the front end commission
they got from the borrower, taken out of the proceeds of the loan. So, the
brokers were "double dipping" ie getting paid twice, once by the borrower,
and again by the "correspondent lender".
      This is why the underwriting was so lax. The correspondent lenders just
wanted a warm body to sign the Note in blue ink so they could get their YSP
commission. The warehouse lenders turned around and sold these Notes on
Wall Street at inflated prices in CDO's. Both the investors and the homeowners got shafted on these deals. So what is the remedy?
       In my humble opinion, and based on equity, the solution is a moratorium
on the interest on these loans created by fraud. That way the homeowners
only have to pay back the principal, and the defrauded investors at least
get back their principal. This solution is very deflationary, so the investors will
get back dollars worth more than the ones they invested. the homeowners
will obtain monthly payments that are affordable. If you agree, send a copy of this blog to your Senators and Congressman. Better yet, run for office
yourself, if you have the means and get this idea out there!
Quote 0 0
Stephen

Millions of Americans are with you, but unless you have your own fleet of Predator drones, you are helpless against these racketeers because they own Washington.  Just ask them, they'll tell you so.

Quote 0 0
     Right now, we still have a "nominal democracy". That means we still have
the right to run for office if we have the time and money to do it. The issue is not winnning, but making enough of an impact to wake up the public so that real change is possible in the future.
     Interest on this "phony debt" created out of nothing is the thing which is
destroying our economy and our Nation. The solution is simple, "a moratorium
on interest payments". Look at your mortgage, what if you only had to pay back the principal with zero interest, would that make your payments affordable?  I think it would!
     Read Ellen Brown's book, "WEb of Debt" and you will understand the problem. THE INTEREST ON THIS PHONY DEBT CAN NEVER BE REPAID, IT IS
MATHEMATICALLY IMPOSSIBLE!. So what are we going to do? Allow 50%
of Americans to be kicked out of their homes? I SAY NO!
     Luckily, we don't have to risk our lives in a violent Revolution like the
Americans did in 1776 and the Irish in 1916. We can do it peacably by simply
becoming politically active and throwing our hats in the ring for political office. Form a committee of three, (a triad) aim at  a political office where
one of you has a chance at winning
Quote 0 0
Write a reply...