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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US judge won't punish Countrywide for botched case
Wed Mar 5, 2008 4:57pm EST

By Jonathan Stempel

NEW YORK, March 5 (Reuters) - A U.S. bankruptcy judge refused on Wednesday to punish Countrywide Financial Corp (CFC.N: Quote, Profile, Research) for errors in a case involving a mortgage borrower, saying the largest U.S. mortgage lender's mistakes did not reflect bad faith.

Judge Jeff Bohm of the U.S. bankruptcy court in Houston said he was "disheartened that Countrywide and outside counsel showed "a disregard for the professional and ethical obligations of the legal profession and judicial system."

But in his 72-page opinion, the judge said he did not find the required "clear and convincing" evidence that the conduct "transcended from merely negligent bungling to full-blown bad faith." Bohm nevertheless urged Countrywide to "reevaluate its policies and procedures" so that its actions would not "undermine the integrity of the bankruptcy system."

The decision comes as Countrywide faces growing pressure to clean up alleged excesses in servicing home loans, including those of borrowers in bankruptcy.

In the last week, the U.S. Trustee, appointed by the Department of Justice to oversee bankruptcy proceedings, has sued Countrywide at least twice in federal court, seeking sanctions for alleged abuses in bankruptcy cases.

Countrywide did not immediately return requests for comment, but has said it does not discuss pending lawsuits. The Calabasas, California-based lender agreed in January to be acquired by Bank of America Corp (BAC.N: Quote, Profile, Research).

The Texas case involved William Parsley, a resident of Willis who filed in 2005 to reorganize his finances under Chapter 13 of the U.S. bankruptcy code.

According to the opinion, the court has ordered Countrywide over the course of the bankruptcy to justify its actions with respect to how it processed Parsley's mortgage payments, and various improper or unexplained fees it assessed.

The judge concluded that Countrywide's "corporate culture" was partly to blame for problems.

"What kind of culture condones blockading personnel from communicating with outside counsel?" the judge wrote. "What kind of culture discourages the checking of outside counsel's work? What kind of culture promotes payment histories that are so confusing to the vast majority of persons, including attorneys and judges -- not to mention borrowers -- that it becomes necessary for legal assistants to 'simplify' them -- leading to more errors and confusion?"

Parsley's lawyer did not immediately return a call seeking comment.

(Additional reporting by Gina Keating, editing by Richard Chang)

© Reuters

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Has Your Mortgage Company Lied to You, Your Attorney and the Bankruptcy Court? : Bankruptcy Law Network

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Once again we see the willingness of a hopelessly ignorant part of the judicial system bend to the power of the law firms that practice before them.

Any adult with a modicum of exposure to the real world of the mortgage business would laugh at a judge who denies the intent of one of the worst of the predators.

It is nothing more than a continuation of the typical coverup posture based on the utterly bogus theory that the attorneys for corporations are behaving ethically, when we know they are more than willing to act on behalf of criminals who have the financial resources to hide from prosecution.

The corruption displayed in this case is disheartening. A judge is so out of touch with the reality of corporate corruption that he would protect the perpetrator of a crime rather than demanding that the case be handed to the US Attorney's office for criminal investigation.


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A Citizen
Do some research on this judge...


If he is turning a blind eye, it's because he is being INSTRUCTED to do so.
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It should probably be somewhat disheartening but I don't see it that way.

How absurd it is for the judge to talk out of both sides of his mouth.

Let's hope that these judges have a mortgage to try and pay.

I'm guessing there would be hell to pay if a mortgage company was
fleecing him and he would expect his legal rights protected and the mortgage company punished.

It's just a borrower that is being fleeced? 

Oh yeah, it is just another judge looking foolish to believe the crap that
is presented as evidence.

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