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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Borrowers must be notified in due time, by law
By Christie Smythe
 
ARIZONA DAILY STAR
More than $1.5 billion worth of mortgages sitting on the books of First Magnus Financial Corp. will likely be finding new homes in the near future.
The Tucson-based mortgage lender made loans largely on credit. Now that the company has filed for Chapter 11 bankruptcy, the creditors want to take back the loans or get the proceeds from selling them to investors.
 
That may be leaving some borrowers wondering what might happen to their loans, and where they should be mailing their future monthly checks.
 
Luckily, there is a document — probably buried somewhere in borrowers' packets of closing materials — that addresses situations like this.
 
The document is usually called a "servicing disclosure statement," and it explains the notification requirements for companies that buy and sell loans, of the right to collect payment for them, under the federal Real Estate Settlement Procedures Act.
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Nice post Mike, TY for the link!

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arkygirl
Speaking of First Magnus....seems ex-employees or lawyers have created a website

http://www.suefmfc.com/

Sue First Magnus Financial Corp - http://www.suefmfc.com

This website is dedicated to the former employees of First Magnus Financial Corporation.  First Magnus Financial Corporation has decided to file bankruptcy and NOT pay their employees for their wages and compensation earned over the past month.

This is unacceptable as the officers within all First Magnus and its subsidaries profited millions and now justice must be served. 

We encourage everyone who is owed wages and compensation from First Magnus Financial Corporation to click here to join the class action lawsuit forthcoming. 

It is time to make all officers of First Magnus Financial, Great Southwest Mortgage and Charter Funding accountable.

 

Please sign-up and forward to anyone you know who may be involved.



Number registered so far: 1271

This is reprehensible, First Magnus has a legal and moral obligation to pay their employees for the time served...er, I mean worked. On the other hand, these companies have screwed everybody they could find. It was naive of the employees to think they would be magically exempt from the fraud.

Maybe some disgruntled people will speak up and become whistleblowers now.

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4 justice now
Hmmm... I know this may not apply to all employees at this company. But, I must say... I find it very interesting how many of these employees have just all of a sudden developed an aversion to fraud. 

Gee, did they just now develop a conscience, or could it have something to do with the fact that they are now the ones being victimized?

Where was all the outrage when their customers were being screwed?

My opinion only.

R,

4J
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arkygirl
Hi, 4J.

While I fully understand your thoughts, I find this really disturbing. Especially since the judge said this in his ruling:

"Former employees of First Magnus Financial Corp. won't get paid before other creditors, a bankruptcy judge said Wednesday.

"They can stand in line with everyone else," said Judge James M. Marlar, who's presiding over the Chapter 11 case the Tucson-based national mortgage lender filed on Aug. 21."

http://www.smartmoney.com/news/on/index.cfm?story=ON-20070829-000887-2034

Does this open the door to any huge employer shutting the doors and screwing their ex-employees out of their wages? I find the judge's ruling to be cold-hearted; "stand in line" ack. Would he be so complacent if he suddenly found his own paycheck gone AWOL? First Magnus somehow escaped giving COBRA insurance to their employees so all employees and their families are now without health insurance. Hmmm, COBRA is a law....

The human collateral damage in this mortgage fiasco is bad enough. This ruling only serves First Magnus and the corrupt CEO....Per court DOCS, Jaggi, the CEO, will be able to keep one of his Jets and a 3 person crew to run the jet so he can fly around and close down operations and liquidate assets. 

I cannot agree with this ruling even while agreeing with your sentiments. This is wrong. This is where the architects make out like bandits while the builders starve. Even if they were crappy builders they should be paid for their time and sweat. That jet should be sold to pay these people their rightfully earned money IMHO. 

And does this ruling set a dangerous precedent in an industry that is collapsing in front of our very eyes? Will this ruling spread beyond this one case? Could it spread beyond this industry to "help" more "architects"? I am afraid it may do just that.

Once upon a time in America wages were sacrosanct and many laws were enacted to insure that every American worker was justly compensated for his labor. I guess this industry has managed to trash even that. All they have to do is hide behind the bankruptcy courts and fly away (literally, in this case) with their ill-gotten gains.

Guess we will agree to disagree. I am still hoping for whistleblowers from this mess. Redemption may lie along that road for some.


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4 justice now
Arkygirl:

I have no problem acknowledging when I've made a mistake or have mis-spoken. So here it goes... I was wrong, I should have been more considerate of those who have lost their jobs due to no fault of their own. Just because I don't like the actions or tactics of a particular company, I really should know better than to condemn any of its employees just because they are or were employed there.

Also, I do agree that all assets of the CEO and upper Management, etc. should be the first items on the chopping block, not the employee's pay check. This does represent another bad precedence for workers everywhere.

Thanks for bringing this to my attention.

R,

4J
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I have been Investigating the Case of a Refund Check mailed to a Loan Customer for the Overpayment of certain "undisclosed" fees at the time of Closing.  The Check was Mailed to Gwinnett County, GA, and Negotiated there as well.  The Check was Dated 08/03/07, and was presented on 08/10/07..and was Verified with the Company.  The Instrument has been returned as "Refer to Maker", and the Acceptor has been Defrauded as a Result.  After listening to the "posturing" of one of their in-house Lawyers.....I have Decided to Prosecute the Following persons for Theft by Taking - Felony, a Violation of O.C.G.A. 16-08-02:     Tom Sullivan Sr., Tom Sullivan Jr. and G.S. Jaggi

They will now be Introduced to Southern Justice...Georgia style!
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