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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Congress asks Prince and O’Neal to testify on pay
 
15 Jan 2008

A US Congressional commitee has asked Chuck Prince, the former chairman and chief executive of Citigroup, and Stan O’Neal, his counterpart at Merrill Lynch, to justify their severance packages when they were forced to leave the banks.

Representative Henry Waxman, chairman of the Committee on Oversight and Government Reform has invited three chief executives who he said were implicated in the sub-prime mortgage crisis to testify on February 7 about their severance and compensation packages – Prince, O’Neal and Angelo Mozilo, the chief executive of Countrywide Financial, the mortgage lender acquired by Bank of America last week.

In a letter to Prince, Waxman said: “According to press reports, you collected tens of millions of dollars in payments and other compensation upon your departure from Citigroup. You should plan to address how it aligns with the interests of Citigroup's shareholders and whether this level of compensation is justified in light of your company's recent performance and its role in the national mortgage crisis.”

Waxman sent similar letters to O’Neal and Mozilo.

O’Neal had led Merrill since December 2002 but was forced to leave in the wake of multi-billion dollar writedowns last October. At the start of the month Merrill warned it would write down $4.5bn (€3bn) at its fixed income, currencies and commodities trading unit from its exposure to collateralised debt obligations and US sub-prime mortgages, but this rose to $7.9bn.

John Thain, chief executive of NYSE Euronext, the transatlantic exchange, and former president and chief operating officer of Goldman Sachs, was hired to succeed O'Neal in November, becoming the first outsider to be appointed chairman and chief executive of the Wall Street bank.

Prince also stepped down in November after increasing the amount of writedowns in its mortage business and was replaced by Vikram Pandit, the former Morgan Stanley banker and founder of hedge fund Old Lane, as chief executive.

Citigroup is reporting its fourth quarter and annual results today and Merrill Lynch on Thursday.

Financial News and Information from Financial News Online US

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O -

Trader Made Billions on Subprime
Wall Street Journal - 10 hours ago
By GREGORY ZUCKERMAN On Wall Street, the losers in the collapse of the housing market are legion. The biggest winner looks to be John Paulson, a little-known hedge fund manager who smelled trouble two years ago.

below is from the story

For buyers of the slices who wanted to insure against the debt going bad, Wall Street offered another instrument, called credit-default swaps.

Naturally, the riskier the debt that such a swap "insured," the more the swap would cost. And this price would go up if default risk appeared to be increasing. This meant an investor of a bearish bent could buy the swaps as a way to bet on bad news happening.

During the boom, however, many were so blind to housing risk that this "default insurance" was priced very cheaply. Analyzing reams of data late at night in his office, Mr. Paulson became convinced investors were far underestimating the risk in the mortgage market. In betting on it to crumble, "I've never been involved in a trade that had such unlimited upside with a very limited downside," he says.

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Give them a call, drop them a line. According to the gentleman I spoke with this morning they're interested in hearing from us as Mortgage Servicing Fraud victims.

Committee on Oversight and Government Reform

Republicans

  • Rep. Tom Davis, Virginia, Ranking Minority Member
  • Rep. Dan Burton, Indiana
  • Rep. Christopher Shays, Connecticut
  • Rep. John M. McHugh, New York
  • Rep. John L. Mica, Florida
  • Rep. Mark E. Souder, Indiana
  • Rep. Todd Russell Platts, Pennsylvania
  • Rep. Chris Cannon, Utah
  • Rep. John J. Duncan, Jr., Tennessee
  • Rep. Michael Turner, Ohio
  • Rep. Darrell E. Issa, California
  • Rep. Kenny Marchant, Texas
  • Rep. Lynn A. Westmoreland, Georgia
  • Rep. Patrick T. McHenry, North Carolina
  • Rep. Virginia Foxx, North Carolina
  • Rep. Brian Bilbray, California
  • Rep. Bill Sali, Idaho
  • Rep. Jim Jordan, Ohio

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Oh my God Mike, I will be here all day and night just downloading on the Litton Loan/CBASS/MGIC/RADIAN stuff!!!!
 
I think they have a buffer!
 

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Ed Cage

Mike Dillon:

Don't sell yourself short.. You are a leader/pacemaker within this elite MSF forum who makes things happen.

 

Few have the snap and savvy to "make it happen." Indeed one reason the mortgage fraudsters got so far and so deep into the pockets of exploited victims coast to coast is because of what I call the "They ought to do something about that" syndrome.

 

     You're one of the few that understand that the "THEY" is actually "US."  

 

I did spent about 3 hours this morning watching Congressman Waxman's Committee on George Mitchell's superb investigation into the performance enhancing drugs professional athletes (primarily MLB) are using to cheat. They acknowledged up front that it was not the most pressing issue facing America at the present time .. But in a way that's not the whole story nor is it the criteria we must use in setting our agenda into the 21st century.

 

The Executive and Legislative Branches must put the people and the abusers on notice across-the-board that things are being done to correct the great injustices our 2008 American society faces.  (Hey that's their job!)  And it's OUR JOB to let them know we are holding them accountable and doing our part to help them correct these things that have been overlooked too long.

 

I also taped and watched an interview with Mitt Romney on the Sunday George Stepenopolis show (name escapes me). Romney did touch on the Mortgage SERVICING industry!  Yes that's exactly what he called it.. He said that he favors the lenders/servicers being required to cease the aggressive foreclosure trends and help the borrowers save their homes.. (Paraphrasing) Romney said for example that the borrowers should have a chance to prove they can meet and adhere to the earlier rates they agreed to.. Rather than jacking the rates up and forcing the borrowers into foreclosure.

 

Mitt Romney did another fine job as he did on Meet The Press last month.. Huckabee did an excellent job as well.. And btw Huckabee beat Romney in Iowa after being outspent 50-1 !  (Unheard of)

 

                                         Back on track:

   Thanks for the contact with the very highest levels of our government

                on our mortgage servicing fraud subject Mike!! 

 

Ed Cage

Plano Texas

ecagetx@tx.rr.com

 

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