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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Former Wells Fargo senior vice president, Cheronda Guyton, unwittingly exposed an example of underlying deceits associated with foreclosure.  The easy to verify facts I have make me certain that the chief concern of lenders like Wells Fargo (in order to do as they please with seized property) is having “collection lawyers” file foreclosure proceedings, after which mortgage companies flip, sometimes fraudulently, real estate.  Often, blighted neighborhoods are the direct result of being repeatedly sold (flipped) either to straw buyers or to borrowers who may not have qualified for a mortgage in the first place.  Wells Fargo (and likely other lenders) appears to have no qualms –especially if Wells can receive from IRS tax benefits, and if such practices promotes misleading investors about housing market earnings.

Clearly, failure to pay a mortgage usually means loss of one’s home, as was the result for the Miami homeowners who were duped out of their money by Bernie Madoff.  However, as evident from that Miami home of which Guyton made personal use, in depth look at certain deceptive mortgagees’ practices will reveal that a critical objective of foreclosure is NOT necessarily so that the lender can regain its financial losses by reselling properties, but rather for flipping, or for illegally receiving IRS tax advantages, or for deceiving Wall Street, or personal purposes after seizure and (sometimes simulated) sale.

In discussing his multibillion dollar scams, Ponzi Scheme operator Bernie Madoff primarily said that he would not have been successful had anyone bothered to pay attention and take appropriate actions.  For too long, the same has been true of Wells Fargo.  Precisely, when red flags flare like Guyton, Wells Fargo is allowed to do its own investigation --and cover up.  (Wells Fargo announced it fired Guyton; other times, some press release, designed to placate the public becomes issued.)

It’s like the rooster guarding the hen house.  Wells Fargo reported there was no one else in involved in doing what Guyton did; and there’s some hint Wells has been pressured to have Guyton prosecuted.  Also, because of Guyton’s 17 years with Wells Fargo, it is not rocket science to conceive that Guyton merely did what she has seen other Wells Fargo personnel do. And I imagine Wells Fargo will bargain with and for Guyton to prevent her from telling what she knows.

The difference between Madoff and Wells Fargo is that Madoff continued until he was caught and convicted, but because authorities repeatedly have been satiated with Wells Fargo’s own internal inquiries  –hopefully not because of enormous lobbying monies, Wells Fargo has not been caught, nor have appropriate actions been taken.  For the most part, consumer complaints about Wells Fargo seem futile.  It seems that not until City Mayors (such as Baltimore) began suing Wells Fargo, has the company began to be scrutinized by entities not on the inside of Wells Fargo.  

An investigation of quite a few Wells Fargo foreclosed properties will beyond a doubt show public fraud.  In fact, in some instances, through disguise of a mortgage company’s name, a foreclosure “collection attorney” can be (and some illegally are) the actual foreclosing plaintiff.  As such, to exploit defaulted / distressed homeowners by using court systems to confiscate fraudulently the properties is despicable.  Yet, it is a pervasive white collar fraud.  Moreover, not only can there be money in illegal confiscations, there is also lots of billable hours to be racked up from litigating against homeowners who oppose various wrongful repossessions / foreclosures. A detailed description about enormous money made from foreclosure litigation is contained in the Dallas, Texas third amended complaint of the lawsuit entitled: Super Future Equities versus Wells Fargo.

The additional big red flag about Wells Fargo (and certain other lenders), is that scores of foreclosure cases are now being thrown out of court because lenders produce no proof of owning the note.  This begs questions such as the following:

How many people are unlawfully homeless, unlawfully evicted due to foreclosure filings that lack proof of ownership?  How many “Motion to Lift Stay” have been filed in Bankruptcy courts by use of the name of some mortgage company that did not have ownership of the note?  Is it not glaringly clear that notwithstanding any lender’s right to repossess property, foreclosures cannot lawfully occur without compliance of established laws?  If courtroom judges simply give collection attorneys carte blanche authority to seize and sell [defaulted] property without judges bothering to determine whether the named mortgage company exists or whether there is proof of owning the note, how probable is it for an unscrupulous lawyer to use any company’s name to seize someone’s home?  If mortgage companies receive tax credits and advantages from the Internal Revenue, can there be likelihoods that companies don’t care about blighted neighborhoods?  For people who bash defaulted borrowers despite what led to default (like divorce, or medical bills), should the effect (blighted neighborhoods, loss of property taxation for city services) be a cause to contemplate potential wrongdoings by mortgage companies or their agents, and be proactive?   Lastly, irrespective of the gust of foreclosures that were dismissed from courts, what untold numbers of people who lack legal knowledge or lack means to pay for legal representation lost their homes unlawfully?   A sweeping investigation of Wells Fargo is long overdue.  Proof about Wells Fargo can be found via this web link:

Barbara Ann Jackson
Law & Grace, Inc

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I sure am glad your posting. I've been reading all your posts. I'm a WF victim as well.. But, I like you believe everyone is involved and doing nothing. Unless, that is you look at the Judges are doing. Like you say their given Carte Blanche TO LIE CHEAT AND STEAL about ANYONE!

I don't know if you've been following or not but I've gained alot of info here lately that I didn't know that shows they've been doing this for sometime and if you try to stop them you can't. Even attorneys who end up working for some of these 4/clsre firms quit because someone is signing their name and they shouldn't be...

Here's the blog I've made. Somehow, we have to get justice!

Be blessed!

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Barbara Ann Jackson

Hi everyone. I am the author of the above post regarding settling for Wells Fargo’s own investigation. I am positive about the Wells Fargo / Cheronda Guyton matter taking place in Malibu; and that the property was even referred to as "Malibu Colony properties." (Unfortunately, I'm not a good proofreader, nor, thanks to mortgage fraud, can I afford one.) I am aware that real estate agent Irene Dazaan-Palmer wanted show the lender-reclaimed Malibu property of Lawrence and Linda Elins. I simply mistyped the word Miami instead of Malibu, and never even realized I had done so.

However, I feel certain it is clear to any reader that the identities as well as the incident about which I wrote were in fact the people in Malibu. Thank you for calling my error to my attention.

ALSO, I am not a lawyer, I am simply someone who uses her time, money, and resources to do what I can to help people to whom blogs such as these are intended. Thanks to anyone who calls to my attention the Miami / Malibu error. -Barbara

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