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
arkygirl
There are some bad boys getting our money...

Then There Were Seven: Ocwen Gets Treasury Funds

                                               

By DIANA GOLOBAY
April 21, 2009 10:56 AM CST

                                               

West Palm Beach-based Ocwen Financial Corp. Inc. (OCN: 10.92 -2.24%) on Thursday joined the ranks of the first servicers to receive federal funds through the Treasury Department in order to facilitate participation in the Making Home Affordable Modification Program. The Treasury investment is not the only source of outside funding Ocwen stands to recieve, as its operational model continues to change and improve, according to a credit rating agency.

Ocwen became the seventh servicer to receive the promise of Troubled Asset Relief Program funds to modify mortgages of at-risk borrowers, the Treasury announced in its most recent TARP transaction report.

The other six servicers included Chase Home Finance LLC (which received up to $3.55bn), Wells Fargo Bank NA ($2.87bn), CitiMortgage Inc. ($2.07bn), GMAC Mortgage Inc. ($633m), Saxon Mortgage Services Inc. ($407m) and Select Portfolio Servicing ($376m). Treasury bases investment figures on the size of each company’s respective servicing portfolios, however the government lender may adjust the actual dollar amount based on servicer usage. So far, program fund promises total $10.57bn to the seven servicers, a fraction of the Treasury’s $75bn program to try to prevent foreclosures and help borrowers refinance into new loans.

More here:

http://www.housingwire.com/2009/04/21/then-there-were-seven/
Quote 0 0
Stephen

UNbelievable!!!!!

Quote 0 0
h gosh
And exactly what are the servicers expected to do with these funds?  Any disclosure? 
Quote 0 0
arkygirl
They are supposed to modify "at risk" loans. (Watch the number of "at risk" loans soar in the near future). I suppose the gummint will tell them from day to day what to do....I am sure that transparency is NOT the goal. Money laundering to hide fraud IS the goal; whatever they can do to keep these fraudulent mortgages in play and "detoxify" them (at least on the books). They will detoxify them by replacing the original legal instrument with another one...a clever smoke and mirrors trick.

It will be great for the servicers. They can lock borrowers into "new" contracts that strip them of all legal rights and milk them and the gummint at the same time. They will be like pigs in slop, grunting and feeding. And in a few years, after milking everybody for everything, the foreclosures will begin anew.....they are kicking the can down the road and forestalling foreclosures, hoping that the housing market will stabilize and that foreclosure will become profitable again I suppose.

My head is surely going to explode. It almost makes me wish for the old RTC and that is saying something!

"The government plans to pay servicers a $1,000 one-time fee for modifying a mortgage down to a 38% payment-to-income ratio for five years. Modified loans must survive a 90-day trial in order to be eligible for the incentive payment. Government funds will also match the cost of further interest-rate reductions or other modifications to bring payments down to 31% of a borrower’s income. If borrowers perform in their newly-modified mortgages, servicers would be eligible to receive $1,000 per annum for three years under the government incentive program.

A Treasury spokesperson told HW the servicers are added on a rolling basis to the transaction report, meaning the seven already posted — including Ocwen — represent only the beginning. “There are more servicers in the pipeline that will be added this week,” she said.

The most recent addition to the servicer list, Ocwen received Treasury’s promise of up to $659m for mortgage modifications. Even before its TARP investment, the servicer touted its believed role as the first servicer in the country to begin executing loan modifications under the Obama administration’s plan, indicating the servicer may be trying to demonstrate a recovery from recent losses of revenue and investor confidence."

Quote 0 0
SIG TARP

*TARP INSPECTOR GENERAL WARNS OF 'CATASTROPHIC FRAUD' POTENTIAL... P O T E N T I A L ? ? ?

 
20 criminal probes into possible securities fraud, tax violations, insider trading and other crimes of bailout banks
http://www.latimes.com/news/nationworld/nation/la-na-tarp-fraud21-2009apr21,0,2443377.story?track=rss

THIS is beyond sick . . . .

HOME AFFORDABLE MODIFICATION PROGRAM

4/13/2009 Select Portfolio Servicing - $376,000,000

4/13/2009 CitiMortgage, Inc. -  $2,071,000,000

4/13/2009 Wells Fargo Bank  -  $2,873,000,000

4/13/2009 GMAC Mortgage, Inc.  -  $633,000,000

4/13/2009 Saxon Mortgage Services, Inc.  -  $407,000,000

4/13/2009 Chase Home Finance  -  $3,552,000,000  $3.55bn ???? Anybody know if EMC has been swallowed up by Chase Home Finance? 

4/16/2009 Ocwen Financial Corporation, Inc.  -  $659,000,000

http://www.sigtarp.gov/index.shtml 

Robust Enforcement
"SIGTARP’s third primary role is to prevent, detect and investigate cases of fraud, waste and abuse of TARP funds and programs. SIGTARP, through its own investigative resources and through partnership with other relevant law enforcement agencies, is committed to robust criminal and civil enforcement against those, whether inside or outside of Government, who waste, steal or abuse TARP funds." 
So, if servicers use TARP funds to steal from homeowners, is that okay as long as they are not stealing from TARP?


Quote 0 0
4 Justice Now
"CRIME DOESN'T PAY" 

Well, we all know what utter B.S. that is! This is certainly a sad day in deed. There's now absolutely no doubt at all... crime does pay, in fact it pays quite well, the bigger the crime the bigger the payday.

I was naively thinking that at least some form of sanity might return to our government once Bush left office. I thought most of the companies, such as Ocwen and all their fellow bottom dwelling scumbag buddies would finally be exposed for the criminal frauds that they are and that justice might once again return to this country. Well, I guess I was wrong.

They must truly believe that Americans have an I.Q. of about 50, or they are for the most part is blind, deaf and dumb. 

My opinion.


4J
Quote 0 0
4 Justice Now
This is so morally/legally disgusting in so many ways, I just don't have the words to describe my complete repulsion. Anyone who has anything to do with this sack of sh-t is either a criminal or a complete moron or both.

What's next?... maybe the government should start paying murders to properly dispose of the bodies of those who they kill. Who gives a damn about the fact that they have committed a murder!  We certainly can't have a bunch of ripe bodies laying around stinking the place up, you know. This could have a negative affect on tourism or something... so really, it only makes sense. Besides, only they happen to know where all the bodies are right.

I'm sorry, I really do know just utterly ridiculous this sounds... unfortunately, the criminals/morons running our country don't seem to have a clue at all.

My opinion.

4J
Quote 0 0
hgosh
Since Select Portfolio Servicing a/k/a Fairbanks Capital has received $376,000,000 do you think that the 489,650 victims of illegal fees can finally receive full compensation?  I understand that Fairbanks claimed....

"It is not possible, as a practical matter, to simply write-off, reverse, refund or reimburse all fees and charges that borrowers "claim" were improper .... because of various limitations in how Fairbanks .... keeps its records".

and the lead counsel for the class agreed that

"Fairbanks business and financial condition presents substantial additional risk that .... Class Members may recover nothing..."

and therefore, if you did not opt out, you received pennies for a home stolen from you, and the "reverse" program was bogus....

or if you opted out you are probably still in litigation.......

Yea, I know, I know, but I'm still mad as heck...............AND I thought that servicers couldn't modify loans so what is going on??????  What is really happening, as pointed out above, is they will write a new loan for you..be very very careful folks!!
Quote 0 0
arkygirl
America is now officially a lawless nation. Contract law has been commandeered for nefarious purposes-money laundering and fraud cover up, IMO. They are not really morons in the gummint; they are desperate individuals who fully realize that if the people ever fully understand the fraud perpetrated on them, the rebellion would be inevitable. Add to that the desperate attempt to hide from other countries the bill of goods that we sold them and it all makes sense. They are using taxpayers to make the phony paper that was sold all over the world "good".

One of the best things we had going for us in this country was that contract law was rigidly enforced; thus each party knew where he stood at all times. That began changing when third party servicers were introduced into the process; everything began getting hazy then.

Now the only thing that is certain is that all parties in any contract stand on liquid quicksand. A contract can now be undercut and modified by people who have no legal standing and who were not involved in the original transaction at all. Thus it is not a "contract" as defined by law. It is a "non-binding" piece of paper and virtually worthless. (Wonder how many CDO and CDS trades will be transacted based on these "new" servicer contracts for the benefit of the vultures on Wall Street? And will servicer contracts be modified or replaced later on if they cannot fit the model the gummint seeks? Will we modify ourselves to death?)

I remember when servicers could not modify contracts, or so they claimed. THAT made some sense since the servicer did not own the note. Now it is all up in the air, upside down and backwards. Servicers still do not own the note but are allowed to create new awful contracts with the benevolent blessing of everybody, it seems.

For this reason I will not enter into any more contracts, period. It seems that any old cowboy can just ride in and take that contract for himself and make it his own to collect on his own terms. Contracts are no longer binding, so I am not inclined to open myself up to any more abuse from known and unknown parties. I have been kicked in the teeth one too many times as the banks try to make me responsible for their own stupid decisions.

I no longer trust any of them because they all lied. "Fixed" doesn't really mean fixed. Everyone is "high risk" now, even with stellar credit. "Oh, you DO have good credit. Well, we can take care of that. We will lower your credit limit-A LOT- and raise your interest rate-A LOT- all at the same time. There, hon, we just gave your FICO score a great big shiny black eye and you never did anything wrong at all. We are, after all, a full "service" bank." "Serviced", indeed. That is entirely too much power over my individual destiny to put into the hands of others who view me as a slave to their own whims and bad business decisions. I have learned from it and will not do it again.

Yes, be careful. The risk environment is thick. It comes from the banks, the credit card issuers and the gummint itself. The deck is now completely stacked against all of us. Don't sign on the dotted line and you have nothing to fear. Sign and become fodder for the grist mill. I made my own decision that it just isn't worth it. I am getting too old and too tired to keep dodging these bullets and they are just too determined to make everybody appear non prime now to justify their horrible rate jackings.

FICO can go hang himself in his basement. FICO is too easily manipulated by any bank or debt servicer that is inclined to do it.  I have filed for divorce from FICO and will never waste another minute worrying about Fair Isaac. He can go sleep with all the Wall Street putas any time he wants now and in the future.

hgosh and 4 Justice, the Select Portfolios and Ocwens will live on at the expense of all of us. No one will ever be made whole because they are unable to untangle their own web of deceit. You are right to be angry. We should all be angry. I am going to starve them out as I have given up hope that legislators (who are totally dependent on these companies for re-election) will ever really go to bat for us. I have pretty much given up on the courts where cases dwell half-alive for years without action being taken. Nope, I am just putting them all on starvation diets and will never willingly feed this corrupt monster again.
Quote 0 0
I didn't want to strat a new thread just for the below local news.  However, ANYONE is his right mind must surely know this arson is an inside job.  One sure fire way to get rid of inventory.

Here is the link:

http://www.azcentral.com/community/pinal/articles/2009/04/23/20090423pc-fires23-ON.html

Fire destroys 6 QC homes under construction

Six homes in various stages of construction near Queen Creek were destroyed by fire Wednesday night.

The houses, located on bank-owned land near Ironwood Drive and Ocotillo Roads, had been abandoned for the past two years and were unkempt and falling into disrepair, said Deputy Chief for the Rural Metro Fire Department Bill Grubb.

The homes were a part of a subdivision that failed due to financial issues, Grubb said.

When fire crews arrived on scene around 6:30 p.m. all six houses were fully engulfed in flames, Grubb said. The area around the homes had been cared for, with no weeds or dead brush to add to the fire.

To avoid putting firefighters in harm's way, Grubb said, crews instead decided to let the houses burn until they fell into their basements. Once the homes fell, firefighters filled each basement with a few feet of water to stop the flames.

Most fire crews left the scene by 9 p.m., but one crew was left to watch the blaze overnight.

Early Thursday morning, investigators returned to determine the cause of the fire. The homes had no electricity or plumbing, Grubb said.

Quote 0 0
4 Justice Now
Arky,

I couldn't have said it better!  I totally agree with you conclusion regarding the possibility of ever receiving any form restitution, etc.

They will never receive a single penny worth of business from me as well (Not willingly anyway).


V/r,

4J
Quote:

America is now officially a lawless nation. Contract law has been commandeered for nefarious purposes-money laundering and fraud cover up, IMO. They are not really morons in the gummint; they are desperate individuals who fully realize that if the people ever fully understand the fraud perpetrated on them, the rebellion would be inevitable. Add to that the desperate attempt to hide from other countries the bill of goods that we sold them and it all makes sense. They are using taxpayers to make the phony paper that was sold all over the world "good".


Quote 0 0
MoreServicerTARP
More Servicers Approved for Treasury Funds Housing Wire

Quote 0 0
Write a reply...