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
These practices have been widespread in the industry. Should we begin building prisons now??? Maybe that will be the next real estate boom.

A former American Home Mortgage branch manager was sentenced to more than two years in prison, as well a fine of $50,000, and $190,000 in restitution in connection with wire fraud charges.

According to the information regarding the case, Kourosh Partow falsified documentation to secure stated income loans for both American Home Mortgage and Countrywide.

Partow plead guilty to two counts of wire fraud, one for each lender in exchange for two counts being dropped.

Originally he had eight counts of wire fraud against him, totaling $2.2 million in American Home loans and a $156,000 loan from Countrywide.

In the American Home Mortgage case last year, Partow apparently stated a borrower’s income at $20,000 to help the client refinance their home, after knowingly collecting income documents that revealed a much lower monthly salary.

In the Countrywide case back in April of 2004, he admitted to overstating a borrower’s income to help the client quality for loan.

In both cases Partow acted as a loan officer, likely filling in the loan application forms with false income information.

Partow was also accused of engaging in a scheme to falsely show that borrowers had made 20% down payments on their properties by working with appraisers to artificially inflate house values.

I must say I’m rather surprised at this, just because inflating income on stated loans is probably the most common and seemingly innocuous practice loan officers engage in.

If the courts continue to investigate these matters, there will be a lot more ex-mortgage employees headed for prison.

Quote 0 0
Nye Lavalle
You're almost right it's High "Hoe", High "Hoe", It's Off To Jail We Go! In my research, you should see how many coke heads these scums hired to feed their habits. Just another part of the sleazy side of Wall St!
Quote 0 0
States are going after brokers and appraisers big time:

There are two primary reasons that consumers can't repay loans. The first involves an unexpected change of circumstance, such as a job loss or medical emergency. If consumers experienced a short time during which they could not make payments, but if they are now back on their feet financially, they should ask their lender for a deferral -- moving a delinquent payment to the end of the loan -- or other repayment restructuring. If the change of circumstance is permanent, more drastic measures may be necessary, such as a quick sale to pay off the debt, or a "short sale" in which the lender agrees to permit the house to be sold for an amount less than the debt. A second category of defaults involves loans issued as the result of deceptive lending practices. While most lenders and loan brokers in Maine are highly reputable, there will always be exceptions. If a case involves fraud, forgery or other illegal activity, our office steps in and takes regulatory action. We have suspended loan officers who coached borrowers to falsify income, and one who temporarily gave a consumer funds to make it appear that she had savings in the bank. We have encountered inflated appraisals, and even a fake W-2 form that a loan officer fabricated on a computer.

"Every time a home is foreclosed on, why not require the lender to make the original, and subsequent, mortgage applications part of the record?

And then have someone from a regulatory agency, like the federal Office of Thrift Supervision, examine the documents to make sure that no fraud was committed on either side of the table at the close of escrow.

This agency also entered the fray last week, too, at the behest of the nonprofit Neighborhood Assistance Corp. of America. It asked the OTS to force Countrywide to redo loans for borrowers having trouble making payments. The organization ( has established the Home Save Program to provide assistance for homeowners with unaffordable loans who are at risk of losing their homes.

During an event in Washington, D.C., a panel of borrowers discussed the financial trouble they are in with their mortgages.

On Thursday, Bill Ruberry, an Office of Thrift Supervision spokesman, told the Web site MarketWatch that the OTS will deal with specific Countrywide cases that the group brought up on Thursday.

"We are going to look into each one of the cases and talk to the institution to determine how their problems can be worked out," Ruberry said. But he declined to comment specifically about how the office would resolve the issue with Countrywide.

The agency did not return calls seeking comment Friday.

Bruce Marks, chief executive at the NACA, agrees it might be time to start reviewing records, too. "I think everything should be looked at. You've got to put the responsibility where it should be."

Quote 0 0
The pressing question now is this: Will it work its way up the chain to the big boys? How about the Erbeys, the Mozilos and all the rest of those Alfred E.Neumans out there, will they have cause to worry now?

Jailing (breaking) an individual link does not eliminate the chain. It may shorten it and in some cases, weaken it, but the chain still exists. American Home and Countrywide failed to do their due diligence in these cases. They had motive NOT to do due diligence, we here all know that. I thought that was against the law.

Why jail the construction workers and let the architects go free to devise yet another unsafe structure? Makes no sense unless one studies motive. The gov has real motive now to let this continue so they can have money in circulation. The gov has no real motivation to stop the scams because the scams are what enable them to say that the economy is wonderful. And the gov are the regulators....what do they call that in legal terms? "Vested interests". Those with vested interests always make pi$$ poor regulators. It is a vicious system designed to bleed the life out of those who can least afford it...US!

I smell another bailout  coming and it reeks to high heaven. I cannot see that the gov has a choice under this ridiculous fraud of an economy.

Quote 0 0

Ag, I believe you hit that one dead on i.e. Erby, Mozillo et al - "What, me worry?"

Quote 0 0
O -
 <from the story>
DS News Hosts First-Ever Town Hall Meeting to Debunk Public Misconception Lenders and Servicers Are Looking to Foreclose on Homeowners

Largest Gathering of Default Servicers in the History of ...
PR Newswire (press release) - 1 hour ago was conceived as the online counterpart to DS News (formerly REO Magazine), the default mortgage servicing industry's monthly media voice in print.

Quote 0 0
Hmmm...I wonder if I can get a cheap round trip to Dallas at this point.....
Quote 0 0

It's systemic.  The whole real estate industry is deliberately structured for racketeering.  The entire mountain needs to come down.

Quote 0 0
Nye Lavalle
Will have people there... Copies of PredBear report to everyone as well. Right Jack?
Quote 0 0
Nye Lavalle OOPS
Forgot, they dont want to foreclose NOW, when market conditions make them upside down on most loans. Only in good times when equity is there to steal. Fing scumbags!
Quote 0 0
This forum should sign up to do an exhibit at their "Town Hall Meeting". 

Largest Gathering of Default Servicers in the History of ...

Quote 0 0

Oh, for an F-18 and one bunker-buster!

Quote 0 0

Bang on !

Quote 0 0
4 justice now

Make that two please... after all, we want to be sure!
Quote 0 0

Here's the event program.  For those planning to attend, you'll find registration form on page 14. 
Quote 0 0
4 justice now

Are you or any others planing to attend?

Please let me know I believe I may want to join in as well.


Quote 0 0
Burn Down The Mission
As Elton John would sing. Anyone got a light?
Quote 0 0
This is a really Great idea! How can they say no?

mac wrote:
This forum should sign up to do an exhibit at their "Town Hall Meeting". 

Largest Gathering of Default Servicers in the History of ...

Quote 0 0
It would be nice if we had a video we could submit for viewing during the meeting, All about Mortgage Servicing Fraud and what we think they need to do about it.
Best Practices should be part of it.
Quote 0 0

I'd love to 4J. I'm just not sure I can put the time frame, documentation and finances together in time. I'd be willing to bet that Jack Wright and/or others down in the Dallas, TX area will be. If nothing else, I'll make sure that the law firm handling Ellington is aware of the event.

Quote 0 0
I took a quick look and what I did not see is quite curious.

Where is the cast of characters that borrowers here deal with?

Oh, they are probably the unnamed industry leaders?

Or maybe the award winning humanitarians?  Now that makes me laugh.
That would be easily rebutted. 

I would dearly love it if someone from here could attend.

The hand outs would probably be valuable info as well as these
Q&A sessions.

I've gone to hundreds of these kind of seminars on a different topic of course
but they end up being about how to scrounge up new clients in the industry.
Lots of drinking and lots of fooling around behaviors.  You may find a lot of
information we've never been privy too, as well.

They mention in the people who should attend are those looking to start up
a business.

How does this look?  Borrowers form  an exciting alternative to predatory
mortgage servicers.  A servicer that voluntarily operates :  A Best Practices
based repayment collection methods.

If we could do something like this, I'd laugh at the money we take right out of their pockets and actually save borrowers being scammed.

Prolly just a pipe dream but I can see that idea might be appealing.

A borrower wants to have some mortgage servicing company that actually
does follow Best Practices.  As that should be good cause for the
securitized loan holder or trustees to change servicers when complaints appear relative to their pool of loans.

If the Wall Street stockholders EVER figure out that the mortgage servicers
are stuffing their bank accounts with stockholder money that should rightfully go to the stockholders if the mortgage repayments were being handled
properly, there would be a huge reduction in foreclosures and a huge
benefit to the borrower.  The borrower oftentimes can't handle their
mortgages because of the "fee assessment" pyramiding scam so who loses?
Everyone except the servicer.

Language could be inserted right into the "Pooling and Servicing Agreement"
that complaints of BEST PRACTICES violations allows for the servicer
to be replaced or to refund the phoney charges plus a penalty of some kind.

This really seems to be an atmosphere for investors and borrowers being
scammed by the same predator.

Maybe the timing is right to provide an alternative to the chaos from false and deceitful practice to BEST PRACTICE.

A servicer should be required to send out their "Best Practices" letter to
the borrower when they assume the servicing.

The servicer's conduct screams regulation is needed.


Quote 0 0

would be beautiful if it were a setup by the FBI, FTC and OTS to throw 'em all in chains.

Quote 0 0
Okay for the FBI to send them to prision

but borrowers should get their money back first.

Quote 0 0

Re:  "Cast of Characters that borrowers here deal with"

If you look at upper right column on page 13 of event program, you will see familiar names:  BOA, EMC, GMAC, Litton, Saxon, WAMU, Wells Fargo plus Fannie & Freddie.

Will be interesting to see how they "debunk" 20 years of MSF case law, settlement agreements, regulatory investigations and congressional testimony.  This conference is nothing more than circling their wagons in an Orwellian thought control exercise.  They all know what they did and do.  
Just a few years back, you never heard of REO and Default Mortgage Servicing Industry.  It didn't exist until they created it.

What is clear is that this pig is only halfway through the python and causing a lot of indigestion. 

Program says they plan to have a session w/ press in attendence.  Can we get some "responsible press" there?

Quote 0 0
Thanks GumShoe,

I missed it.  I was scanning it looking to see familiar names.

The press is going to be there?  Yippee.  Hope one of us gets in there.

The Q&A could get interesting.

We should make up some MSFraud business cards giving the web address.

With a line for you to fill in your name or alias or the name you post on this site???

Just a thought.

Quote 0 0

Hmmm....Sandwich boards were big advertising during the Depression weren't they?

Quote 0 0

I've since put that default servicer conference event program under the microscope.  Names listed earlier are identified as "A Sampling of Participating Lenders and Servicers" so these may have been used for event hype.

On the last page of it they list Sponsors and Exhibitors.  The only names I recognise here are Wells Fargo, Freddie Mac, and RealtyTrac.  Also scanned EXPO HALL Layout..............Boring!
There are a few law firms, title companies, realty firms and investigator services exhibiting plus some real krap like "Bargain Locks", "Vacant Property Security" and "Titanium Solutions".  Titanium Solutions?  What the heck is that?....some Superman proof lock?

  Take a look.  You may recognise more.  Hilton Anatole does not come cheap unless they have an inside deal, so they must be expecting the big fraudsters to come.  Sounds like a great bash opportunity and heck....some guys and gals may know.....lucky!

Quote 0 0
To find them mentioned on one page seems too little to me.

The Giants of the industry are not running the titled seminars.
I find that curious.

Perhaps they are hiding out??????  From ????????????????
for those of us who would love nothing better than to use their own
words against them again and again.

If need be, I've got a hundred dollars to help send someone there. 

Thanks Gumshoe.  Nice work.

Quote 0 0
Could it be that they are hiding under their desks because some very powerful people in Congress are looking at them really hard? Barney Frank, for one....
Quote 0 0

Barney Frank is about the only one I would some what rely on

Quote 0 0
Inside DC
Barney? Damn, he can be bought for the ride kind of sausage or hot dog if you get my drift
Quote 0 0
Re:   Default Servicing Conference  Sept. 9-12 Dallas

A default servicing news publication says this week that its fourth annual conference on the topic has swollen to the largest number of attendees yet. Some 2,200 people are expected to trek to The Fivestar 2007 Default Servicing Conference in Dallas, Sept, 9-12.
Quote 0 0
Write a reply...