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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"Pay for Success" Incentives to Servicers: Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. They will also receive "pay for success" fees – awarded monthly as long as the borrower stays current on the loan – of up to $1,000 each year for three years.
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Now ain't that just grand.  But there is just one little problem here...they make so much more putting your loan into default and setting you up for foreclosure.

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Tomato Tamato

No difference here...

Maryland County May Pay Girls Not To Get Pregnant

A Maryland health official's proposal to pay girls not to get pregnant has reopened a national debate about the merits of offering girls money to postpone motherhood.

Under the proposal, promoted by John Grant, the health officer for Caroline County, girls who have already been pregnant would be paid $30 a month if they avoided future pregnancies and attended regularly scheduled meetings.

The program, if adopted by the county's commissioners in June, would be the first of its kind in the country to be directly...

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  • I heard the government was providing a financial incentive to borrowers.  Is that true?

Yes.  To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan.   The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt.  Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.

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So here is the timetable.  The servicers will keep you current in your loan until they collect the allocated $3,000.  Then, they will start their "suspense" tactics and place you in foreclosure, thereby eliminating your "reward", and still gaining a profit from the fees, insurance, etc. caused by the foreclosure!!
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Excuse me, but aren’t these incentives way more then what servicers normally receive from the trusts to service the loans?  I wonder what the servicrs paid their lobbyists to get this little ditty included.  Damn!  

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Here is my question - why would you reward a servicer because "I" pay my mortgage on time?  If I don't pay on time, how will the servicer keep me current so they can reap the "reward"?  Oh yes, boys and girls, we have many issues here.  Could it be possible the government knows the games that have been played with us (well, we actually have proof that they know and have known for a long time, just look as the Rasmussen Affidavit), and this is an incentive to the servicers to pass the payments along in a timely manner? 
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The first problem I see with this is it only applies to Fannie/Freddie loans. If your loan isn't one of those, the program is meaningless.


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"Excuse me, but aren’t these incentives way more then what servicers normally receive from the trusts to service the loans?  I wonder what the servicrs paid their lobbyists to get this little ditty included."

Not necessarily according to public accounting that may be true but the whole main point of securitizing mortgages in the first place is to create off the books profits.

Unfortunately what you see is not what you get. Theses financial fraud are highly leveraged profits and losses are just accounting practices even shutting down whole branches of the mortgages industry lenders, servicers, foreclosures etc.

While seeing trillions of dollars worth of homes foreclosed coast to coast is shocking and for us very real the vast majority of the assets exist on computer hard drives and asset and ledger books most of us will never see. The mortgages backed hundreds of trillions of dollars of secularized debt.

The financial services industry gets rich from virtual assets and debt not real property which is just a backing for leveraged debt.

There is one issue that people don't fundamentally understand the lenders create money out of debt and leveraging our assets they more debt they have the more bad loans they create the better not worse.

We have all been taught that debt is bad and making bad investments causes losses certainly that's basic common sense and simple mathematics.

Lenders do not live in a world where 1+1=2 they do not live in a world where debt is bad, they do not live in a world where losses hurt them. Lenders live in a world where the more of our money they spend the more they have they live in a world where they can get filthy rich with a very small amount of our money, lenders get rich by lending OUR money back to US and getting us to pay them interest for the privileged. Lenders live in a world where they can charge us for fictitious losses shut down a bank that appeared to lose money and keep the leveraged assets they made using our money.

Until you understand the more debt lenders create the richer they get and the poorer we get you will never understand MS Fraud and why the lenders and investors that apparently "lost" trillions of dollars are not in jail or wearing concrete shoes.

To summarize to us debt is debt it's bad to lenders debt is money it's good.

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R E Professor
What about Main Street?

Mortgage Modification

Most mortgage “modification” is just a scam to hold out false hope while punitive forbearance agreements only forestall the inevitable.

All this talk about mortgage modifications is a bunch of hooey. Nobody has any real incentive to make this work because the alternative is way too profitable.

Most subprime loans are subprime loans because the borrower cannot show sufficient income to qualify. Now, remember all of those small business owners? The people who, by Washington’s own admission, are the back bone of the economy and the leading creators of new jobs? Well that’s us. We don’t have pay stubs and a company health care plan; we provide them.

Nobody talks about this, but most subprime loans are in the control of “Mortgage Servicing Companies.” Somebody has to collect the payments and forward the funds to the holders of the mortgage pools. For this, they get chump change. However, collecting late fees, penalties, and coercing borrowers into onerous forbearance agreements is where the real money is, and it is all theirs to keep.

The servicing companies make more money by forcing people into default and collecting unlimited fees. They specifically targeted subprime borrowers loan pools because they do have a higher rate of delinquency due to the often fluctuating income of the borrower. But, these borrowers can frequently get access to larger amounts of cash than a wage worker so they tend to be able to pay huge amounts to avoid foreclosure. Why would the mortgage servicer want to modify a usurious loan?

Let’s not forget that subprime lending is a very profitable business.

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Borrowers do forget or never realize in the first place they often waive their judicial foreclosure rights by entering a foreberance agreement and often grant the lender/servicer immediate possession on violation of their terms. Problem with that is even if the terms are agreeable to you it's still at thier discretion and not subject to judicial review. You usually waive your right to the redemption period as well.

By entering a forebearance agreement you may validate any type of fraud by agreeing to the terms and lose recourse to foreclosure defenses, damages etc. Likewise entering into a B.K. agreement 7 or 13 you lose your right to sue for fraud because you validate an invalid debt.

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