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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FnDoomed
When a loan is transferred after a default then the transferee bank can be classified as a debt collector. 

See Schlosser v. Fairbanks Capital Corp., 323 F. 3d 534 - Court of Appeals, 7th Circuit 2003  "In other words, the Act treats assignees as debt collectors if the debt sought to be collected was in default when acquired by the assignee, and as creditors if it was not."

This case is a good one to read because the plaintiffs weren't even in default, but Fairbanks thought they were, treated them like they were, therefore the appellate court held that they were debt collectors...

Debt collectors have been held in such low esteem for so long that there are lots of laws in place to reign them in.  Unlike the recent, useless* consent cease and desist orders issued to the big banks there are laws applicable to debt collectors that actually have private causes of action.

If you are in a position where your loan got assigned after default, then you can treat the new guys like debt collectors.  Read the FDCPA and the FCRA to start with.  Your state may have local versions.  Then use google scholar to read relevant cases to get a feel for what works and what doesn't.

Once you have violations under these acts then you can either pursue them or hold them for later removal of a state court action to a federal court simply by counter claiming a federal allegation and removing it.  

You could also pursue the strategy of "give them all the rope they need" and let them commit violation after violation.  Develop some serious emotional damages, I mean trauma, then go get the damages award.

By the way - this is true of any debt collectors, but the environment is especially bad for the big banks right now.

* When I said useless I meant that they have no teeth and specifically exclude private causes of action.  The findings of the OCC starting on page 2 are still findings though, so you can get some judicial notice which might allow you to do some extended discovery and make some "on information and belief" allegations.





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Did I mention, in the case of my fiance, that we have a case of this as well? It's so strange I keep telling everyone it's like the people doing this deal with her sat down reviewed a "how to guarantee you get caught" list of things to do when committing mortgage fraud and a host of other charges ....and then did them all just to make sure. I use to hate a case where man you had one two maybe three things that were strong enough to win the case on their own having a couple only bettered the chance, can't say for sure cause who knows what goes on in a jurors mind lololol...., anyhoo hope all works out.


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wow I am tired that last bit makes no sense. I use to hate a case that had one if that really strong thing that would lend to the mindset that this will do the job and we win. Here it's like G_D himself said lets take care of business and I have say 3 things that by themselves and together guarantee, well with the usual caveats, a favorable verdict let alone all the other stuff that ties a bow around this pig big enough to hide the fact its a pig.



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FnDoomed
Read & investigate the FCRA.  Have your intended get copies of her credit report from the big three credit reporting agencies (CRAs).  Dispute the debt with the new "debt collector" and the CRAs.  Check the reports during the next reporting periods.

No updated status means FCRA violations - at least that's the theory.  I have less time for research during little league baseball season

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Sandy
I thought this was interesting:

... "the FDCPA... is a remedial statute, [and as such] it
should be construed liberally in favor of the
consumer." Moreover, the standard in most
of the circuits for evaluating many of the alleged violations under the act is the "least-sophisticated
consumer" standard, a low threshold for a
FDCPA plaintiff.


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Sandy
FnDoomed, you might want to check out the article about FDCPA here:

http://works.bepress.com/alvin_harrell/subject_areas.html#Consumer_Law

Scroll down to Consumer Law and look for:

The Fair Debt Collection Practices Act: A Tenth
Circuit Primer


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