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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I can remember way back in the day
When folks begged for Ocwen to go away.

The OTS scowled and said "No, not us.
We're not willing to fall under that bus!"

So Ocwen debanked and OTS sighed
"Boy, are we glad to be off of THAT ride!"

Ocwen still lives in the dark spaces of hell
OTS hides in the shadows as well.

Seems OTS regulates nothing much at all
And has contributed it's bit toward the great fall.

"We might be complicit", they'll moan and wail.
"We refused to listen to the Ocwen tale".

"We refused to regulate back when we could,
now it's too late to do what we should."

After our clamor and OTS denials
A person would think there would be some trials.

So as we sow, so shall we reap
OTS finally admits its utter defeat.
                                                 ~arkygirl



The combined net income of 831 thrifts plunged 84 percent to $704 million in the third quarter, down from $4.29 billion a year earlier, the Office of Thrift Supervision (OTS) reported today.

Third-quarter earnings were also down a staggering 82 percent from the $3.83 billion reported in the second quarter.

“I wasn’t expecting it to be good, and my expectations were realized,” OTS Director John Reich said.

Total mortgage originations of $185.7 billion, including multifamily and non-residential mortgages, were up 8 percent from the $172.1 billion in the third quarter a year ago, but down 5 percent from $194.6 billion in the second quarter.

The sharp decrease in profits was attributed to increased loan loss provisions, which rose to 0.92 percent of average assets in the third quarter, up from 0.38 percent in the second quarter and 0.22 percent in the same period a year ago.

“Despite the difficult environment, I am encouraged that the managers of OTS-regulated institutions are taking the appropriate steps to provide a cushion for the future,” Reich said.

“Strong capital and higher loan loss allowances will serve thrifts well if housing markets weaken further.”

The OTS plans to release their own loan modification strategy within days, which will compensate servicers with $500 per modified loan, and assist borrowers who are current but facing unaffordable resets.

Reich has criticized FDIC Chairman Sheila Bair’s “one-size-fits-all” approach, which he believes would spook investors.

“I think investors will never return to the market again if they know that at some given point in time the agreement they thought they entered into when they bought those securitizations can be modified by fiat,” he said.

The OTS loan mod proposal would call for a case-by-case determination made by servicers, giving qualified borrowers a 36-month interest rate freeze on their initial teaser rates.







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Joe B
AG-

     Is Reich serious. You are going to give the servicers, many of whom created this mess-- a reward equal to $500 to re-work a loan?

     Not only does this reward them for their mess, I bet it will be tied to a non-disclosure and "get out of jail free" card for the servicers on these loans!

     Good luck getting the investors to agree to the servicers being rewarded for hosing their rate of return!!

This is a disaster!

     Although, it could make it easier for some folks to save their house, and that CANNOT be a bad thing!

JB
 
"...The OTS plans to release their own loan modification strategy within days, which will compensate servicers with $500 per modified loan, and assist borrowers who are current but facing unaffordable resets..."

Reich has criticized FDIC Chairman Sheila Bair’s “one-size-fits-all” approach, which he believes would spook investors.

“I think investors will never return to the market again if they know that at some given point in time the agreement they thought they entered into when they bought those securitizations can be modified by fiat,” he said. (Right, and that differs from his plan how?)

The OTS loan mod proposal would call for a case-by-case determination made by servicers, giving qualified borrowers a 36-month interest rate freeze on their initial teaser rates.

Again, I think this boils down to a small number of loans being modified, and likely only the ones that have origination problems that they are trying to bury. The homeowner will have to sign away any right to recourse, and then the servicers get to tell the world how great they are!!



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The OTS, OCC and especially the Federal Reserve itself are not really government agencies they are the lenders themselves. The wolves are in charge of the hen house.

That's one of if not the biggest problem we face is that the general public believes there are these unbiased government agencies looking out for our best interests and trying to ensure a stable, lawful lending and monetary system and that is just not the case.

Wall street, investors and lenders especially in the age of mortgage backed securities
thrive off of volatility. The best possible outcome for the lenders would be if the economy crashed into a hard depression and the taxpayers bailed them out.

We see the same principle in debt forgiveness to third world nations it seems sensible and humanitarian on the surface but guess what the cycle starts all over again and they are stuck paying interest and loans forever. Creating and forgiving third world loans has nothing to do with being nice, saving lives or lifting people out of poverty and has everything to do with keeping people dependent on a debt based economy. On an international scale huge government endorsed loans are made to entire nations that are designed to fail.

In the same way if the economy crashes lenders and politicians by the hundreds will pose as humanitarians  and saviors  bailing us out of the mess they created. There is big money in creating demand, creating debt and selling goods and services and living off the interest.

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Oh, yeah, Joe, I think Reich is as serious as a heart attack. The Great Shadowy Behind the Scenes Bailout has begun. They won't call it that, but that's what it is. We all WILL pay and there won't even be a slowdown in foreclosures. The banks, thrifts and companies who created, distributed and now service the poison loans will survive, except for one or two "token" companies that will be allowed to fail just to make it look good.

The bigger question presents itself. What in the world was the OTS doing? What was it regulating? I was talking to the OTS in 2003 about Ocwen (along with hundreds of other angry people) and was met with a benign nonchalance. OTS could not wait to get rid of toxic Ocwen because they received so many complaints about it. Having to deal with all the phone calls and complaint letters cut into their long days of doing what appears to be NOTHING!

Evidently, the OTS, SEC, and all those other agencies who are charged with keeping them honest have been doing as little as possible for many years to let things get in this shape. Do we really need them? What good have they done anyone besides sucking up fat paychecks at taxpayer expense.

Now the scam companies will have all the money AND all the real estate. Where does that leave you and me? Will they even tolerate us to live in this country? It just angers me and scares me all at the same time.

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4 justice now
I know this has already been said above, but I can help myself:
 
 
Quote:

The OTS plans to release their own loan modification strategy within days, which will compensate servicers with $500 per modified loan.
 

What The F-ck?
 
Well, AG at least this settles one long standing controversy: Now we know there are alien abductions taking place! As I can tell you this... there is no way this sort of bizarre thinking/logic could ever take place on a planet that has any form of intelligent life at all.
 
Therefore, I know we are have been transported to some far away planet. Most likely it's the servicers very own planet of Uranus, where they are originated, or should that be pronounced: your anus.
 
As Attorney Kweku used to say:
 
OTS is Ole Toothless Stinky.
 

IMHO

R,

4J 
 
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srsd

It is strange thay have money to help crooks but not the victims......well...I guess some people will have a happy holiday while there are others that will be homeless......THANK YOU OTS

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http://www.innercitypress.org/hotissue.html

That's not all the crooks responded to the OTS limited time offer and got these free gifts.

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OTS receives no appropriated funds from Congress.
Income of the bureau is derived principally from
assessments on thrifts and savings and loan holding
companies, examination fees, and interest on
investments in U.S. government obligations.

The OCC’s operations are funded primarily by
semiannual assessments levied on national banks.
The OCC derives approximately one percent of its
funding from interest revenue from its investments in
U.S. Treasury securities and licensing and other fees
combined. The OCC does not receive congressional
appropriations to fund any of its operations.

http://209.85.173.104/search?q=cache:eOnHU2kVRr0J:www.treasury.gov/offices/management/budget/budgetinbrief/fy2006/unappropaccts.pdf+OTS+funding+assessments+on+thrifts&hl=en&ct=clnk&cd=6&gl=us&client=firefox-a

The OCC, OTS, and the Federal reserve are not really Federal agencies and they not only have no interest investigating fraud they don't even have the capacity to investigate fraud. They are the lenders and are funded by and serve themselves.
 The public radically misunderstands the government relation to the lenders and how they are regulated, they are charged with regulating and prosecuting themselves.

Time and again, the U.S. agency that bank customers might assume is on their side has lined up with banks to fight state and local measures that purport to aid consumers.



The OCC's solicitousness toward the businesses it oversees stems in part from its need to compete for their loyalty. In an uncommon arrangement, banks can choose either a state or federal regulator, and the selection has financial consequences: The OCC and state banking departments subsist entirely on fees paid by the institutions they regulate.

Still, he doesn't apologize for using the OCC's power to override state and local laws designed to protect consumers. Enjoying this aid provides an incentive for banks to sign up with the OCC, he says. "It is one of the advantages of a national charter, and I'm not the least bit ashamed to promote it." His counterparts at the SEC, FTC or FDA don't have a comparable turf-related incentive to advertise their ability to knock down state and local consumer-protection laws.

Third-ranking Bank of America, based in Charlotte, N.C., now pays $40 million a year to the OCC in fees, or the equivalent of 10% of the agency's annual $400 million budget.

  excerptsfrom

http://www.feinstein.org/wsj/occ.html



To ask any of these bogus Federal agencies to prosecute themselves is like asking the Mafia to stop crime.



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arkygirl
They are shill agencies put in place to make us all think that someone gives a rat's fanny about whether they are honest. They go to their offices and file their nails and play WoW all day. They have pseudo jobs with a pseudo agency. The whole thing has been an elaborate con....they just call themselves regulators because it sounds good. They are not really regulators, they are more damage control. Rather than move off the tracks when the train is coming they remain in place and then scramble to pick up the pieces. Rather a stupid job, really.

I use the term "taxpayer" loosely in my post but I can see that it gives the wrong impression. Ultimately, we are all paying because the banking cartel gets its profits from us, doesn't it? The government picks our right pocket and the bankers pick the left...it is all one huge carrion picking scheme.

So OTS can't investigate anything or stop the huge fraud right under their noses while it is happening. Tell me, where do they suddenly get the "power" to start modifying loans? Why have they suddenly put down their nail files and joysticks to swap them for pens to modify loans? Who has called the troops to action?

That is the intriguing question. Anyone know the answer?

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