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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Texas Attorney General Asks Lenders to Prevent Foreclosures

Kerri Panchuk | 10.12.07

Texas Attorney General Greg Abbott has asked three of the state’s top lenders to implement foreclosure prevention measures to help borrowers thwart the threat of default when $600-billion worth of subprime adjustable-rate mortgages hit rate resets in Texas next year.

In his statement Friday, Abbott appealed directly to Countrywide Mortgage, Houston-based Litton Loan Servicing and Dallas-based EMC Mortgage Corp.

“Mortgage lenders, loan servicers, and public officials must work cooperatively on behalf of Texas homeowners who are affected by the looming housing crisis,” said Abbott. “Because of the housing industry’s tremendous economic impact, resolving this issue is important to the Texas economy’s continued growth and expansion. We believe that the proposals laid out in today’s meeting offer real solutions that will help keep Texans in their homes.”

The loan prevention measures laid out by Abbott’s office include:

- Providing long-term solutions for borrowers with adjustable-rate mortgage loans (ARMs). Mortgage companies should consider easing homeowners’ mortgage-related burdens by converting adjustable-rate loans into fixed-rate products. Many ARM loans have already adjusted and pushed countless consumers into the foreclosure process. Because of high foreclosure costs, this proposal benefits lenders, loan servicers and homeowners.

- Mitigating first, collecting second. Under the protocols currently used by most lenders, homeowners who have difficulty making payments receive expedited referral to the collection process, which is often antagonistic and intimidating. Attorney General Abbott encouraged companies to engage homeowners before sending a case to collections by reviewing each case in a non-confrontational setting and exploring solutions. By doing so, the servicers increase the chances of debtors repaying their obligations.

- Creating an in-house resolution committee to address consumer complaints. Attorney General Abbott urged today’s participants to dedicate in-house staff to immediately address consumer complaints received by the Texas Office of the Attorney General (OAG) and report promptly to the OAG on the status of those complaints.

- Improving communication with consumers. While many companies have adjusted their protocols and are engaging consumers who face imminent foreclosure, Attorney General Abbott recommended that companies improve their communication efforts. The attorney general also encouraged the companies to contact consumers well before ARMs reset to higher interest rates so that fixed-rate options can be explored.

- Waiving applicable penalties and fees. Attorney General Abbott urged lenders and loan servicers to waive penalties and late fees associated with loans at risk of foreclosure while the companies work with troubled consumers to preserve their loans.

 
 
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In his statement Friday, Abbott appealed directly to Countrywide Mortgage, Houston-based Litton Loan Servicing and Dallas-based EMC Mortgage Corp.

That is so sweet.  They can do a few mods, get maximum positive press spin out of their purported good deeds, then continue same old abusive servicing practices to fulfill Wall Street's manufactured defaults quota.

Seems a criminal investigation into their egregious activities would be far more to the point.  FC actions should be halted until it is completed. 


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I wonder if the AG will look into the "Forced Place Insurance, Surplus Lines Tax's" 
 
Or the Stripping of equity from the Pooling and Servicing Agreements by foreclosure of "Cherry Picked" mortgages?
 
Or the out right theft of peoples money at closing?
 
How about all the "Escowed Accounts"?
 
Or the Forging, altering, and substituting legal documents?
 
And the outright lying about payment histories, to adversely effect a mortgages credit history, in order to PREVENT them from getting away from Litton Loan?
 
I only hope he asks me!  I have the documents, evidence to prove all the above!   Go ahead Mr. AG, ask me!  I would be happy to come to Texas again and provide both testimony, and evidence to all the above against Litton Loan.
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Joe B
Gary-

     Right there with you. I doubt very seriously if a concerted look into the actual issues will ever take place. I really think all of these committees, task forces, and groups put together by politicians will simply perform enough work to keep the authorities off their back and get some good press! They never have any homeowners or victims on these panels do they? Gee I wonder why...

     I also bet that anyone who gets a rework plan will be forced to sign a release denying them the right to do anything to fight any wrongdoing if and when it is discovered. This will give the servicers and lenders an opportunity to hide all of their fraud, bad paperwork, and 'misplaced' documents, etc...

     I actually have a favor to as you though Gary. I have seen you post the idea of stripping equity via the PSA a couple of times. I was hoping you could just describe what you mean. I think I know, but I want to understand it a little better.

     Thanks!

JB
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He's appealing to Countrywide, Litton and EMC ?
Now what makes AG Abbott think those criminals will listen to him when they've been throwing millions of borrowers under the bus and getting away with it for the past 2 decades?  If he's just manupulating the press he oughta be strung up with the rest of them!

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Hey Abbott - why not call the Governor:

Perry and Mozillo
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