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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Cindy
I think I read that a lender who buys a loan already in default becomes a debt collector and cannot foreclose, but I can't remember where I read it. Is this correct about the lender?



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FnDoomed
Hi Cindy.  Two links for you:

http://ssgoldstar.websitetoolbox.com/post?id=5265611

http://ssgoldstar.websitetoolbox.com/post?id=2667541



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Cindy
FnDoom,

Thank you, thank you! These links are just what I need.
One of the posters (OHIO, 2008) in the second link seemed to have a lot of knowledge about this, not sure that poster is still around.

After reading the info, I am thinking that this debt collector issue can become extremely problematic for the recent BAC transfers to BOA, N.A. and BNY Mellon.

What do you think?

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FnDoomed
You're welcome Cindy...

Look around for posts by Ohio - maybe he typed his email into one of them?   I'm not hip to the shenanigans among those players so I can't comment on that situation.
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As I recall Dan Edelman was the first to win at the appeal level that when a servicer boards a loan that is in default the servicer falls under FDCAP.

http://www.edcombs.com/CM/News/news118.asp

The case was apparently remanded and I am not sure what the outcome was:

http://caselaw.enlyton.com/323%20F.3d%20534

Hope this helps.  If I am wrong I am sure I will be corrected.

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Cindy
Thanks, WaytoGo,

All of this is a great help to me. As I research more of this, I realize how much more we need to know.

In case this helps someone else, here's a statement I copied from the second of the two links FnDoomed posted in this thread. In 2008, H. Gosh said:

"Not only if they received the note after default.  If they treat the note as if it was in default when they received it.  In other words, many notes were transferred that were viable functioning accounts, however, the servicer treated the note as if it was in default, or placed it into default within 30 days because the hello/goodbye letters were not sent, and payment went to the old servicer."


And in this topic, discussed in 2008, on this site, Ohio said:

Once the note is in default and the servicing changes hands - the new servicer is then considered a debt collector.

And here is a 2008 link from a law firm member, who directed a link to an article on their Web site that explains more:

http://www.wolffirm.com/publications/41.htm

I do want to point out here that the lawyer who posted on this site was (is?) affiliated with an organization involved with mortgage servicing, so decide for yourself if his input is helpful or not.
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The Wolf Firm was, and may still be, a foreclosure mill in California.  So take their opinions knowing the source.
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Hi Cindy

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THE FAIR DEBT COLLECTION PRACTICES ACT - (FDCPA), 15 U.S.C. §§ 1692-1692p.

§ 809. Validation of debts

(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing—
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and
(5) a statement that, upon the consumer’s written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. Collection activities and communications that do not otherwise violate this title may continue during the 30-day period referred to in subsection (a) unless the consumer has notified the debt collector in writing that the debt, or any portion of the debt, is disputed or that the consumer requests the name and address of the original creditor. Any collection activities and communication during the 30-day period may not overshadow or be inconsistent with the disclosure of the consumer’s right to dispute the debt or request the name and address of the original creditor.
(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.
(d) A communication in the form of a formal pleading in a civil action shall not be treated as an initial communication for purposes of subsection (a).
(e) The sending or delivery of any form or notice which does not relate to the collection of a debt and is expressly required by the Internal Revenue Code of 1986, title V of Gramm-Leach-Bliley Act, or any provision of Federal or State law relating to notice of data security breach or privacy, or any regulation prescribed under any such provision of law, shall not be treated as an initial communication in connection with debt collection for purposes of this section

§ 813. Civil liability
(a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person in an amount equal to the sum of—
(1) any actual damage sustained by such person as a result of such failure;
(2) (A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000; or
(B) in the case of a class action,
(i) such amount for each named plaintiff as could be recovered under subparagraph (A), and
(ii) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000 or 1 per centum of the net worth of the debt collector; and
(3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney’s fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney’s fees reasonable in relation to the work expended and costs.
(b) In determining the amount of liability in any action under subsection (a), the court shall consider, among other relevant factors—
(1) in any individual action under subsection (a)(2)(A), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or
(2) in any class action under subsection (a)(2)(B), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collector’s noncompliance was intentional.
HOW TO DEAL WITH DEBT COLLECTOR
https://www.privacyrights.org/Letters/letters.htm
 
 

 




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