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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Joe B
OK folks- not to sound cynical here but...

If 11 of the largest servicing companies are on the coalition, do you think they are really going to expose their own illegal activities, or use this as an opportunity to cover them up? Good grief.

I smell white wash and very little real change for those of us who have been subjected to servicing fraud. In fact, I bet one of the stipulations for any 'relief' that may be offered is that the homeowner will have to sign a release!! Anybody want to bet that I am wrong???

I truly hope that this is a real solution aimed at really helping people who have been wronged (whether in the origination, servicing, or any other point), and not bailing out people who simply speculated and lost! There is a difference, and so far I am not sure the press is getting it, and I doubt this coaltition will do anything to address that!

JB

http://www.msnbc.msn.com/id/21221395/

White House forms mortgage coalition
Group aimed at helping U.S. homeowners facing foreclosure
The Associated Press
Updated: 10:51 a.m. ET Oct 10, 2007

WASHINGTON - President George W. Bush's administration announced a new mortgage industry coalition on Wednesday aimed at helping U.S. homeowners avoid being trapped in a rising tide of foreclosures.

Treasury Secretary Henry Paulson said the initiative would help coordinate efforts by financial companies to help an estimated 2 million homeowners whose introductory mortgages with low rates are now resetting at much higher rates, greatly increasing the risk they will default on the loans.

"A combination of stagnant or falling house prices, low down payment mortgages and resetting adjustable-rate mortgage rates are creating real challenges for many American homeowners," Paulson said in a statement.

He said that 11 of the largest mortgage service companies, representing 60 percent of all mortgages in the country, had agreed to join the new coalition. Other members will include mortgage counseling agencies, investors and large trade organizations.

"These leaders recognize that by working together, coordinating and scaling up their activities, they will be able to work toward the goal to help more homeowners," Paulson said.

The new initiative, which has been dubbed HOPE NOW, follows an announcement by Bush on Aug. 31 that his administration was making changes in the Federal Home Loan Administration insured-loan program so that more people could qualify for FHA-insured loans.

Democrats, however, have criticized the administration, saying the actions so far have been too little and too late to significantly address a growing foreclosure crisis as American homeowners struggle to deal with sharp increases in their adjustable mortgage payments.

URL: http://www.msnbc.msn.com/id/21221395/


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big bad wolf

Its foxes guarding the hen house

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Me 2
Are they getting paid? That's just to much! Good Grief is right.

Why don't Bush just sell our ports? Or open our borders to Terrorist Truckers?

Oh that's right he already did...WTF?


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Me 2

Speaking of BUSH, Why does China have a OIL rig off the cost of Florida? who's great idea was that? and why?


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arkygirl
Effort has been dubbed "HOPE NOW".

Hope for what? Or whom? What are "they" (the gov, investors, large trade organizations and the servicers) hoping for under all that "compassion"? Stone cold here.

Could it be that they really want to see all defrauded borrowers remain in their homes? Naw, there are no borrowers represented in HOPE, just industry folk. Could it be that some lenders are in to try to pull this gigantic fraud off without being detected in their loan frauds, to just smooth them over and HOPE that they go unnoticed? Getting warmer, I think.

Investors may be trying to salvage some of their money. They are probably represented by the same SOBs who sold them the toxic CDOs in the first place. Hedge funds HOPE to cover their tracks and salvage something from the debacle? Getting still warmer, I think.

And the Administration which suddenly seems compassionate toward regular folks is suspect. Perhaps it HOPEs to use the GSEs to help shore up the tanking dollar so that China and other countries don't have a hissy fit on us and start making sudden demands? It can also use the GSEs to help cover the mountains of fraud that have been perpetrated by a certain presidents "good buddies and campaign contributors"? The mountains of fraud will be buried under even bigger mountains of shredded paperwork as loan documents get transferred. Voila! We got in, we got rich, we got out and we will cover the fraud so that historians and lawyers can never find it! Mission Accomplished! Uncomfortably warm now....

Sorry, I just sort of run backwards at a high rate of speed when the government promises to help fix anything. I think a lot of money will be thrown at this and it will be used to keep servicers, bad lenders, hedge funds, some high profile investors solvent. There will be a few "borrower success stories" bandied about in prominent news agencies and the rest of the money will evaporate into the hands of the bad guys. Darn, is it just me or is really really HOT in here?

Should borrowers HOPE? I don't think so. I can HOPE that the clueless uncaring government might actually be able to set up a program that works, but I am not holding my breath since blue was never my color. Most people do not have time for anything to be done before their ARM resets. And what about the many who have already lost their homes to this fraud? Won't help them....And the many more who have wrecked credit because servicers lie to the bureaus? This won't help them...

I think this is a cleverly designed bailout. Lenders, servicers and investors will not agree to take this gigantic hit, no way. It will never happen. Someone is going to get payola to fix these bad loans (if that ever even happens). More likely, they will take the money and run and the foreclosures will continue unabated as scheduled.

This will empower the very group who created this disaster to continue with it. We will all pay for it...what is wrong with this picture? Don't stop your efforts...sue them high and low. Don't fall for this lest you be stranded on a rooftop for days while "they" shop and play golf!



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O -
Help
Ourself to
Peoples
Equity


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Nice O! Maybe that should be the next t-shirt that Aaron Krowne puts out over at the Implod-o-meter

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http://www.hopenow.com/

The wonderfully informative website of this new "coalition".
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