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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Angela
I just need an answer about a revised HUD1 that we didn't sign or send back after we closed on our loan.  The closing agent stated that they MUST have the signed revised HUD1 back to them within 6 days, or they couldn't close our file.

We didn't sign it, nor did we send it back.  Our loan was sold on the secondary market, and they used the revised HUD1, not the HUD1 that we originally signed at closing.

Is this legal?

Thank you.

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The Equitable One
So they used a document you hadn't signed in the sale of your loan on the secondary market?

What are the revisions? Why were they made?

By all means don't sign the document until you have a much better understanding of the above questions, and the answer to them.

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Angela
This happened in 2006.  We are seeking a loan mod, and we dug out our closing paperwork.  The revised HUD 1 was on top of the paperwork with a letter from the closing agent.  The letter stated that the form had been adjusted by our lender, and our signatures were required before our file could be closed.
The rate was changed on the revised HUD 1, from 7.2% to 7.5%, and some of the amounts are different from the original HUD 1 on the revised HUD 1.
We have been paying the 7.5% all along, not the 7.2% that we had signed.


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.
Get in touch with a local attorney immediately.
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Missouri

I have a loan w/Ameriquest and they have a HUD doc. that is not signed, they reclosed on my loan after I tried to cancel, So they have the one not signed, I never saw it, or knew it existed until my deposition, I have been in a 6 yr lawsuit, plus they did several other things. GET A LAWYER...What state do you live in?

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Missouri

GET A LAWYER......I have been in a 6 yr lawsuit, over fraud, and my loan was reclosed on after I tried to cancel, and they have a HUD that isn't signed, I didn't even knew it existed until my deposition....

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hey Missouri can you give me a call i think we have alot of similarity in getting screwed by ameriquest
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Angela
I'm in Ohio.
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HUD-1
Usually, the interest rate shown on the HUD-1 settlement statement is useful as a reference for the computation of the daily rate of interest charged at closing for the interest adjustment to the first payment date.

The interest rate for your loan should be shown on the promissory note and in some jurisdictions on the mortgage instrument, as well.

If the rate of interest shown on the contract promissory note was 7.5% and this was incorrectly reflected on the HUD-1, the closing agent would have a valid reason to prepare an amended HUD-1 settlement statement.  You might even have a contractual duty to sign the revised HUD-1 settlement statement under the contractual provisions of the promissory note or mortgage.  CHECK THE CONTRACT LANGUAGE.  Failing to sign the revised HUD-1 settlement statement IF YOU AGREED TO EXECUTE any ministerial corrections necessary to effect the agreed upon deal might even be an event of default under the mortgage in some cases.

I wouldn't let this keep you up at night, even if there is some contractual language requiring you to execute correcting documents.

If the amended HUD-1 reflects the contract rate of interest, then the question arises as to what harm you believe has been done.

Amendment of the HUD-1 to reflect the terms of the contract would be something that a court would typically support.

By contrast, there is another closing document where a discrepancy in the stated rate of interest and, in particular, the Annual Percentage Rate (APR), is quite critical.  This is the so-called Truth-In-Lending (TIL) disclosure.  If the TIL fails to reflect the contract rate of interest shown on the promissory note and/or mortgage, you may have a very strong case for a reformation of the contract rate of interest to conform to the TIL disclosure.

As suggested elsewhere in this thread, it couldn't hurt to discuss the matter with a lawyer.  But I would bring a copy of the promissory note, the mortgage, the original and revsed HUD-1 settlement statement and the TIL disclosure to the lawyer and show him or her all of these documents.  Ideally, you should try to get a FREE initial consultation from one or more attorneys to determine whether you a litigiable matter.

While I do not see misstatement of the interest rate on the original HUD-1 as a big problem for originator, investor or servicer, misstatement of some other fees, particularly points or originations fees on the HUD-1 would possibly be a serious problem, particularly if these fees are not properly reflected in the APR as shown on the TIL.  That is, suppose that you agreed to pay 2 points on a $100,000 loan ($2,000) and this was altered post-closing (and contrary to what was agreed) to reflect 10 points ($10,000).  This would be a very serious sort of fraud and probably would be actionable under TIL or otherwise.  Bear in mind that contract points or origination fees are not shown in promissory note or mortgage instruments.  So with such fees, the closing agent couldn't possibly assert that these were being recast to correctly reflect the agreed upon deal shown in the instruments.

If your sole problem is the change in stated interest rate on the HUD-1 and the calculation of daily interest and the change reflects the contract rate shown in the promissory note, I think you have not been harmed and there is probably no case.  If the other HUD-1 fees have been altered, particularly in ways that injured you, I think you would have a possibly compelling case, though whether it is economic to recover depends upon the nature and amount involved.  
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