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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Sub-prime study faults servicers

From Reuters
September 22, 2007

 
NEW YORK -- -- Loan service companies did little to help sub-prime borrowers with adjustable-rate mortgages stay in their homes, even as it became clear many homeowners were struggling to keep up with their payments, a study released Friday showed.

Moody's Investors Service said banks eased borrowing terms on just 1% of sub-prime mortgages with interest rates that reset higher in January, April and July.

"Only recently" have mortgage servicers begun to modify more loans to help homeowners avoid foreclosures, "despite much industry dialogue and heavy press attention" on the problem, Moody's said.

The credit-rating firm based its study on 16 servicers that handle $950 billion in sub-prime mortgages, it said.

Servicers are responsible for collecting loan payments and paying such things as insurance and property taxes. Sub-prime mortgages go to people with weaker credit.

Moody's said that although some servicers were actively reaching out to borrowers through phone calls, a majority still relied on letter writing, a more passive communication method.

The credit-rating agency did not name the servicers it had evaluated, but said its study covered 80% of the sub-prime servicing market.
 
 
Gee...the servicers aren't doing the bazillion mods we've been reading
 
about them doing?  Really?  Moodys needs to do another study, one
 
that would show which servicers excel in manufacturing defaults?  We
 
know who they are but it might encourage SEC to take an active
 
interest.
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This study is right on!  Many of these servicers do the dirty work for these bad Sub Prime lenders that are made on wall street that are securitized and packaged only to rip off homeowners.  These loans are bad products, i.e.  reset  loans (ARMS),  balloon  payment (All interest loans) that don't amortize and exorbitant high interest fixed loans.

What good are these loans for the consumer?  In the end, they will do nothing but put the consumer out of their home with predatory foreclosures.  Especially, home equity and refinance loans that do no more than steal, rob and suck up all of the homeowners equity.   

If wall street and the rest of the bunch can do no better than provide these bad loans! I say we can do without them, I wish I had never ever gotten a loan from these corrupt greedy sub prime lenders and brokers, too.
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