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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October 04, 2010 - 8:37 pm

AUSTIN, Texas — Texas Attorney General Greg Abbott asked loan servicing companies on Monday to suspend all foreclosure activities over concerns about the accuracy of foreclosure documents.

In a letter sent to 27 companies that service mortgage loans in Texas, Abbott's office demanded the immediate suspension of foreclosures, selling foreclosed properties and evicting people living in those properties.

The letter asks that companies obey the moratorium at least through Oct. 15 — the deadline Abbott established for companies to identify any employees who participated in unlawful practices and assure the state that the targeted companies are following Texas laws.

The attorney general's office is investigating mortgage lenders to determine the "full harm Texas homeowners have suffered," according to a letter signed by Paul D. Carmona, the chief of the state consumer protection and public health division.

"We will be pushing forward with our investigation and inquiry," attorney general spokesman Jerry Strickland said. "This is in the interest of homeowners who are feeling the effects of foreclosures."

Other states are taking similar action. Maryland Gov. Martin O'Malley supports a 60-day moratorium on foreclosures there. Delaware Attorney General Beau Biden is calling on mortgage banks to suspend all pending foreclosures until their policies are reviewed. And in Massachusetts, Attorney General Martha Coakley said her office is investigating an "apparent failure of major creditors to follow state foreclosure law."

The Texas request comes after several companies, including Bank of America, suspended foreclosures following revelations of "robosigning," a practice in which bank employees sign thousands of foreclosure documents a month without verifying their accuracy or even reading them. Some of the court documents have proven to contain inaccurate information or improper notarizations or signatures.

In his letter, Carmona described possible fraudulent practices by lenders, including signing thousands of documents per months, often without reading them; signing affidavits falsely claiming personal knowledge of facts or falsely claiming the signing party reviewed attached documents; and notarizing documents prior to their signing or when the signer was not present.

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Frank
This IS good news and about time........I see the letter to BOA is posted on the front page of Msfraud.org but I was wondering if Litton Loan Servicing was also sent a letter. I could really use a copy of that letter to Litton if one is available. Thanks, Frank
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arkygirl
Litton did receive the letter from Texas Attorney General Greg Abbott.

Here is a link:

Attorney General Abbott Calls for a Halt on Foreclosures While Loan Services Review Their Business Practices

Abbott calls for thorough review to determine if "robosigners" were used in foreclosure paperwork processing

AUSTIN -- The Texas Attorney General's office has called for a halt on all foreclosures, all sales of properties previously foreclosed upon and all evictions of persons residing in previously foreclosed upon properties, until companies have completed a review of their processes, including whether employees or agents "robosigned” affidavits and other documents which were recorded in the State of Texas. The suspension notices were sent to 30 loan servicers doing business in Texas in an effort to determine the full harm Texas homeowners may have suffered or could suffer as a result of these business practices.

Media links
List of Mortgage Companies that received the demand letters
Letter to Mortgage Companies


http://www.oag.state.tx.us/oagNews/release.php?id=3500
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William A. Roper, Jr.
But NOT Today

Non-judicial foreclosure sales in Texas are conducted on the first Tuesday of each month.  For October, 2010, that was Tuesday, October 5, 2010.

While the Attorney General's letter was a step in the right direction, it already came too late.  The Houston Chronicle reported this evening that ALL of today;s scheduled sales were conducted on schedule, those participation by bidders was down.
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Frank
Just because the AG 'asked' the servicers to suspend foreclosures, sales and evictions does not mean they have to comply.......does it?

How much power does the AG office have?  THAT"S what I want to know!
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