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

In a bid to raise badly-needed liquidity, subprime specialist Delta Financial reported this morning that the lender has priced a securitization backed by $900 million in mortgage loans originated by the company. Pricing was not disclosed, although the company described the execution as “materially less favorable than in past quarters.”

From the press statement:

“Pricing this securitization was paramount for our Company in light of the rapid deterioration in the credit markets,” explained Hugh Miller, president and chief executive officer. “This securitization removes the majority of the loans from our warehouse lines which greatly reduces our exposure on these facilities. We structured this transaction as a Real Estate Mortgage Investment Conduit (REMIC) gain-on-sale securitization, in which we sold all the bonds and intend to sell the residual interest. As such, we will account for this transaction as a sale and not as a financing.”

A review of the prospectus materials shows Wells Fargo as master servicer and Ocwen Loan Servicing, LLC as primary servicer.

Nonetheless, it’s worthwhile to note that a deal like this is even getting done at all.

http://www.housingwire.com/
Quote 0 0
Under Dog

Fitch Affirms 41 & Downgrades 32 RMBS Ratings from 10 Ameriquest Securitizations

Quote 0 0
Before I forget, nice post AG....

arkygirl wrote:
A review of the prospectus materials shows Wells Fargo as master servicer and Ocwen Loan Servicing, LLC as primary servicer. http://www.housingwire.com/

This is a perfect example of the language that is screwing borrowers. Per this prospectus the following language can be found under the appropriate heading by clicking the "prospectus materials" link referenced above:

Servicing and Master Servicing Compensation, Payment of Expenses and Prepayment Interest Shortfalls
 
With respect to each Due Period, the Servicer will receive from payments in respect of the Mortgage Loans a portion of such payments as a monthly servicing fee in the amount equal to 0.50% per annum on the Principal Balance of each Mortgage Loan as of the first day of each Due Period.  In addition, all assumption fees, late payment charges and other fees and charges, excluding prepayment charges, to the extent collected from borrowers, will be retained by the Servicer as additional servicing compensation.
 
With respect to each Due Period, the Master Servicer will receive from payments in respect of the Mortgage Loans a portion of such payments as a monthly master servicing fee in the amount equal to 0.0095% per annum on the Principal Balance of each Mortgage Loan as of the first day of each Due Period.
 
I won't bore anyone with the actual math but suffice it to say that "fees" are usually a larger payout than standard monthly servicing fees.
 
Such being the case, it is simply more financially beneficial for a servicer to manufacture and/or keep a borrower in default for as long as possible before foreclosing on the borrower. In the example above, note that the statement is broad enough to include "other fees and charges, excluding prepayment charges." Make no mistake, there are prospectuses that do allow the servicer not only prepayment penalties but "liquidation profits" as "additional servicing compensation."
 
Because of language in contracts such as this prospectus - which has become fairly boilerplate in the industry judging by the prospectuses that I have read to date - the industry mantra that "no one makes any money on foreclosures" simply does. not. wash.
 
And we haven't even made mention of the various insurance policies in place to cover defaulted loans.
 
And since I'm here... We'll be adding a few more states to the SoS list of corps on the front page of GetDShirtz in a little while...
 
 
Quote 0 0
4 justice now
Mike,

With an agreement like that in place, I just don't understand how anyone with any intelligence at all could ever think that the service companies would evolve in any other way than they way they have. Under such an agreement even a honest, lawful company would be compelled to act in a dishonest manner just to remain competitive with the others that may have been criminal from day one.

Any politician, regulator, law enforcement agent, business owner, investor, broker, etc, that is aware of the text in these agreements, and claims they are surprised at outcome in this industry is either a liar or a total moron, or both.

Just my opinion.

r, 4J
Quote 0 0
That's why I've been banging my head against this for so long 4j. Language like this is standard operating procedure at this point. And from the quick look that I took at this one, this is tame compared to other PSAs. I'm surprised I haven't seen somebody's daughter given away as part of "additional servicing compensation" yet. The first time I saw "liquidation profits" given I knew that there was no chance that any of this was accidental.

No wonder Ellington is alleging things like kickbacks. I'm still trying to find out just how many corps are being run out of 3815 SW Temple. Just when I think I've found them all...They're kind of like rabbits...Greedy, fuzzy, beady-eyed little buggers that just keep multiplying in order to steal more and more money from homeowners. Of course, that's just my own personal, non-legal, opinion for those of you from Eckert and Boutin and everywhere else watching. Oh wait, I've actually got a court order that says that this was a "predatory scheme"... Never mind. I have to go finish chuckling over Motions to Dismiss. Sorry if I'm a bit antagonistic tonight. Sen. Clinton must be coming back to town soon... Wait, I don't have to read those. Back to work on GetDShirtz then...

Hey, anyone have any theories as to why Opportunity Funding I, LLC would be registered with virtually every Secretary of State to do business but wouldn't be licensed by state banking departments?
Quote 0 0
Write a reply...