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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arkygirl
NovaStar Financial, Inc. Agrees to Sell Mortgage Servicing Rights in a Move to Reduce Debt
Tuesday October 16, 4:47 pm ET

KANSAS CITY, Mo., Oct. 16 /PRNewswire-FirstCall/ -- NovaStar Financial, Inc. (NYSE: NFI - News), a residential mortgage portfolio manager, today announced it has entered into a definitive agreement to sell all of its mortgage servicing rights and servicing advances relating to its securitizations to Saxon Mortgage Services, Inc., a Fort Worth, Texas, based servicer of mortgage loans, for approximately $175 million in cash subject to certain adjustments at closing. NovaStar will use the proceeds from this transaction for debt reduction. The agreement is expected to close on November 1, 2007, subject to the satisfaction of various closing conditions, including the receipt of certain third party consents. Saxon is not acquiring the NovaStar servicing platform or any other asset, nor is it assuming any of NovaStar's pre-closing liabilities.

http://biz.yahoo.com/prnews/071016/aqtu191.html?.v=16
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arkygirl
The trigger to this was NovaStar’s decision to forego a shareholder dividend during the credit crunch which caused their standing as a Real Estate Investment Trust to be invalidated, changing their corporate structure to a C-corporation. This structural change also changes the requirements of net worth, market capitalization and other conditions that the company needs to satisfy to stay listed with the NYSE.

NovaStar Financial, Inc. Intends to Request a Review of NYSE Determination That It Does Not Meet Applicable Listing Standards and Announces Exploration of Alternative Markets

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/10-17-2007/0004684386&EDATE=        

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