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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Inside CIA
NeighborWorks Controlled by Government and Lenders to Borrowers Detriment (NW Coverage Part 1)

Posted on August 27, 2008 by Robert Doggett

This is the first in a series regarding NeighborWorks.

You may have heard about Neighborhood Reinvestment Corporation, doing business as NeighborWorks America (NW) — the nonprofit corporation that continues to receive hundreds of million of dollars to counsel or fund other agencies to counsel troubled borrowers facing foreclosure. (They just got another $180 million as a part of the new federal lender bailout law just passed in July 2008 described in part here, after previously receiving $180 million in December 2007.) NW performs other activities besides mortgage counseling; over the past ten years NW has received over one billion dollars in government grants and other revenues to perform all of their activities. See NW press release here, IRS Forms for 2003, 2004, 2005.

Fast becoming the Counselor Kingpins

As the nation’s largest certifier of homeownership counselors, NeighborWorks America trained over 3,300 foreclosure counselors in the last four years. In 2008, NeighborWorks expects to train an additional 3,000 foreclosure counselors through forty place-based trainings around the country, an online course on foreclosure counseling fundamentals, and four NeighborWorks Training Institutes.

NeighborWorks Press Release July 30, 2008 here.

NW’s CEO has a different training stat that appears more impressive:

Since its launch in 2004, [NW's training division] has issued nearly 25,000 certificates of completion to housing counseling professionals in pre and post purchase education and counseling courses focused on homeownership and community lending, including more than 5,500 staff from HUD-approved counseling agencies.

Kenneth Wade, CEO of NW, Statement to Senate Banking, Housing and Urban Affairs Committee, Economic Policy Subcommittee, May 1, 2008 here.

Executive Branch and Lenders Control It

Who is on the board of NW? Government political appointees (hardly a group dedicated to ensuring borrowers are protected).

Thomas Curry, Chair — board member of FDIC
Julie Williams, Vice Chair – deputy comptroller and chief counsel of the federal Office of the Comptroller of the Currency (OCC)
Gigi Hyland, Board member — National Credit Union Administration.
Brian Montgomery Board member — Assistant Secretary, HUD.
Randall Kroszner Board member — Board of Governors of Federal Reserve System.
John Reich Board member — Director of the Office of Thrift Supervision.
Source here.

NW’s partners are equally diverse: Citi, Countrywide, Fannie Mae, HUD, Freddie Mac, USDA, State Farm Insurance, Department of Justice, JP Morgan Chase, Wachovia, E Trade Financial, Bank of America, Genworth Foundation, Home Depot Foundation, MetLife Foundation, Safeco Insurance, Wells Fargo Housing Foundation. Source here.

NW operates their trainings under “NeighborWorks Center for Homeownership Education and Counseling” (NCHEC). Source here. Who are their partners? Another borrower-friendly group:

Countrywide (now Bank of America)
Freddie Mac
National Association of Realtors
Fannie Mae
JP Morgan Chase
Source here.

NCHEC facilitated the development of “National Industry Standards” for counselors utilizing an advisory council. Who is on that council? “A broad representation of industry stakeholders” including: Bank of America, Chase, Citi, NeighborWorks, CountryWide, Wells Fargo, Freddie Mac, Fannie Mae, HUD, etc., with some other groups not previously listed like Chrysalis Consulting Group, LLC, Minnesota Housing, NHS of Great Falls, etc. Source here. Clearly the council is a broad representation of the industry — the lending industry.

Who is missing? Borrower advocates like National Consumer Law Center, Center for Responsible Lending, National Community Reinvestment Coalition, Association for Community Organizations for Reform Now (ACORN), National Association of Consumer Advocates, National Low Income Housing Coalition, National Housing Law Project, legal aid organizations.

Developed Flawed Industry Standards for Counselors

One of the national industry standards developed by NW’s industry council was the Foreclosure Intervention Specialty. It was adopted in January 2008 and is comprised of nine whole pages including exhibits. One of the core operating standards adopted requires competency of foreclosure counselors.

Competency: Possess a strong knowledge in the area of mortgage default and/or foreclosure intervention counseling, specifically relating to the current industry practices of loss mitigation to include loan repayment, forbearance, modification, refinance, loan assumption, short sale, deed-in-lieu, community referrals, and other remedies available to the homeowner to avoid foreclosure. The counselor should understand the structure of the primary and secondary markets, the collection and loss mitigation functions of those entities collecting mortgage payments, financial management and budgeting, and be familiar with state and federal regulations regarding the foreclosure process. The counselor should possess the skills to obtain pertinent client information, analyze financial and property data and draft a comprehensive written Action Plan (see Exhibit B) based on the client’s goals outlining the resultant recommendations for foreclosure avoidance or sale.

National Industry Standards for Homeownership Counseling - Foreclosure Intervention Specialty, January 2008 here.

Notice that there is a requirement to be familiar with the foreclosure process. There is no requirement that counselors know anything about state or federal laws that relate to improper, illegal, predatory lending practices. Nothing in the advisory suggests counselors should know anything much except “current industry practices of loss mitigation to include loan repayment ….” Just like the Hope Hotline, the counselors are to be trained to help the industry. See Hope Hotline created to save lenders money. Counselors are to be told what lenders want — either pay up our way, or get out and save us the time, money and trouble of foreclosing: “foreclosure avoidance or sale.”

Counselors Taught to Avoid Advocating and Steer Borrowers to Pay or Vacate

What is NeighborWorks actually teaching to these counselors? Advocates decided to find out and attended a NeighborWorks Training not long ago. Following the direction of NW’s board, the advisory council and their partners, and abiding by their industry standards, NW trainers over a two-day period belittled and blamed borrowers, instructed would-be counselors how to avoid helping borrowers, and instructed attendees to avoid advocating for borrowers and instead view themselves as extensions of mortgage servicers. Attendees were not told about state laws that might help a borrower, other than the basic foreclosure timeline, and were sure not told about any federal law besides bankruptcy and the servicemembers relief act. Contact the attendees to confirm. List here. Most importantly, it is not the fault of the individual trainers — they followed the book written and published by NeighborWorks. More about the content of their trainings and manual will be covered in subsequent postings.

It is no wonder that NW was selected to receive funds – judging from their two day foreclosure training for new counselors – the priority is saving money for lenders, not preventing foreclosures.
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Well, the government and all its horses and men have to infiltrate and take over any organization trying to help borrowers. The big Fraudy and Funnie bailout had to be done, too. Ditto Bear Stearns. And IndyMac.

Why? Glad you asked. How else would they be able to cover up the rampant collateral fraud?

The portfolios are full of collateral fraud. When it comes out (and I think it will because it is getting away from them in spite of their best efforts) the stuff will hit the fan. We ain't seen nothin' yet.

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4 justice now

FWiW: If this weren't such a incredibly serious matter it would be comedic beyond belief.

As for those (the criminal perpetrators, aka: perps) who are clearly pulling the strings in Washington... There can only be a couple of clear explanations for what is happening now...

1. Either they (the perps) happen to believe that 99.9% of the citizens here are complete morons and they (the perps) simply have no conscience, morals or ethics of their own, especially when it comes to screwing this nation and/or its population.


2. They (the perps) are simply morally bankrupt louts who couldn't care any less about what they (the perps) have done, and are doing to this country and/or its citizens, because the only thing that has value to them is $$$.

My opinion on the subject.

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MGIC All The Way BABY~!!!

MGIC Awards Scholarships for NeighborWorks(R) Training Institute.

MILWAUKEE, March 31 /PRNewswire-FirstCall/ -- Mortgage Guaranty Insurance Corporation (MGIC), the primary subsidiary of MGIC Investment Corp. , has awarded twenty-six scholarships to attend homeownership education and counseling courses at the upcoming NeighborWorks(R) Training Institute in Dallas, Tex., April 3-7, 2006.

NeighborWorks(R) America is the nation's largest certifier of homeownership education counselors. Certified counselors must meet high standards and be able to personalize their instruction and counseling to match the unique needs of a wide range of consumers. NeighborWorks(R) education and counseling cuts default...

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If we went back in posts, I addressed this issue with MGIC (CEO) Curt Culver, and MGIC funding 30 million for illegal housing in Wisconsin, 29 million was spent before the state shut it down.  Governor Doyle, and Culver using Guarantee Bank (owned and controlled by Temple Inland)  Kenny Jastrow CEO, and board member of MGIC! 
All in the family!
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As a former Housing Counselor of Neighborworks Western VT I can assure you the training is not fabulous!!  I was teaching a Homeownership class before I ever took the training class!  The thought that this agency is so highly acclaimed is laughable.  I took a different approah to counseling.  I would qualify people based on their net income and actual bill payout monthly.  I was repremanded for these actions because they were "depressing".  Using this method, which was not the industry standard actually showed people the true affordability. 
This was not condusive to the Neighborworks way.  We were encouraged to promote 80/20 loans to avoid PMI.  This totally enabled buyers to avoid a large downpayment if any at all, even though statistical studies show money down leads to fewer default rates.
The truth is in order to receive funding you have to be able to prove that classes and counseling work.  In order to do this you have to submit a HUD1 statement...this only occurs wen a loan is approved and a house is bought. 
The moral of the story a house with no money down, we will find you a low interest rate to make the house affordable, and when the house is no longer afordable...let's blame it on Wall Street!
Liberal policy is to blame, lets face it, not all paychecks are created equal and the concept of affordable housing is just that.  Not everyone can "afford" a home.
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The loans were designed to fail crash the economy and use a taxpayer bailout to cover the fraud. The borrowers are stooges to create artificial losses.

While  Wall street CEO's may be stunningly stupid violent thugs hired to intimidate people, rest assured the money laundering process was set up to profit from the foreclosures. My fathers BIO is very similar to Paulson's  secretary treasurer of steel company, a belligerent all state wrestler who learned to game the system at an early age and steal other peoples assets instead of getting an honest job. My father has several residences in Barrington and both coasts of Florida and the iq of an earthworm a point and grunt caveman mentality using threats and intimidation to take take peoples money.

Heres Paulson's bio:

Born in Palm Beach, Florida, to Marianna Gallaeur and Henry Merritt Paulson, a wholesale jeweler,[1] he was raised in Barrington Hills, Illinois. He was raised as a Christian Scientist.[2] Paulson attained the rank of Eagle Scout in the Boy Scouts of America.[3][4]


A star athlete at Barrington High School, Paulson was a champion wrestler and stand out football player, graduating in 1964. Paulson received his Bachelor of Arts in English from Dartmouth College in 1968;[5] at Dartmouth he was a member of Phi Beta Kappa and was an All Ivy, All East, and honorable mention All American as an offensive lineman.

The problem with the corporate fraud cuture is as Tiffany states is due to a blame the other person mentality and expecting others give you what you feel entitled to. I went to a private school with the largest portion of students from Barrington Hills and many actually earnrd the money and had a savings based mentality and wanted a good education for thier children, I understand the cororate crime mentaltility first hand growing up a blue collar worker type in and excutive blue blood family  I had first row seats as an outside observer.

The primary charicteriscic of the corporate criminal is habitual outrageius lying, like Hitler said the big lie is more believable than the little one, My father made up a coat of arms and claimed we were direct descendents of Alsacian royalty, My stepfather who was an insurance industry millionaire had DR. John Moge written on his checks he simultaneuously claimed to be a medical doctor, a Politcal commentator on WGN news radio and had vanity plates that said WGN on them and a state health inspector and an insurance industry multimillionaire, and a WWII fighter pilot etc. etc. My mother claimed to be a sucessful business person when in fact she was burried in credit card debt and could not even afford ot shop on $150,000 per year.

When I aquired my first $50,000 by saving money as a construction worker my family members made numerous death threats and threats to strip me of my home and assets because they felt it was unfair to compete with them becuase I did not have the burden of children and therefore I was destroying thier image as successful business people by aquiring assets as a construction worker.

After my family taken my boat, had my home unlawfully foreclosed though their real estate and political connections, they claimed they I had hurt many people in the Barrington area by having a nice home and cars without working my way up the corporate ladder, not using inside connections and freinds and most importantly not using other peoples money and labor to create wealth and destroying the towns image by wearing blue jeans and not having a business haircut. My fathers constant mantra was always borrow as much as possible and use as much of others people's money as possible to make money with.

They feel they have no other choice because they can't compete with others through savings, wise investments and productivity.

All the corporate crooks I know say the same thing life dealt them a bad deck of cards and they had right to get ahead at others expense.

Barrington is known as an old Mafia town and it still has a criminal element that believes common people are supposed to be used to enrich the upper class, even though they themselves are just about as far away in percentage of wealth from Bill Gates or Warren Buffet as a common factory worker themselves.

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4 justice now

It's truly beyond amazing to consider the actual odds that were against you, but yet you were still able to defeat such an enormous and overwhelming influence that directed you towards becoming just another soulless predator. Another monster such as a Jeffery Dalmer, Ted Bundy or Charles Manson, or even a George Bush Junior  (I'm sorry, I couldn't resist that one)
Especially, once one has considered the unequaled level of truly sadistic and utterly contemptuous role models you had to contend with daily, as well as being exposed to during such a clearly impressionable time of life, and maybe even into adulthood. 
But despite all of this you were still destined to become a fine ethical and moral example of true humanity. It's quite clear, and I have no doubt that you are a truly honest, law abiding and wonderful person. One who possesses a kind and generous heart. I know I said before but I do once again thank-you for taking what had to have been a very mentally difficult and financially costly path.


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