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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srsd

Does anyone know which candidate is going or promising to do the best thing for the people in the mortgage mess?  If you do, will you please let me know? Now is the time to vote as many good people in office as we can and get some of the crooks out.

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Joe B
SRSD-

     I thought Mike Dillon provided the most thoughtful answer in this topic in a different thread. I have posted it here for your review. There have been other opinions here, but none had the depth of research or facts that Mike has behind his thoughts. I have an opinion, but I think Mike's characterization is better than anything I could write.

JB

Old post Today at 11:33 AM Reply #34


Well...Of the top three Democrats, the only one that I believe has addressed Mortgage Servicing Fraud directly in any kind of positive manner that would help MSF victims is John Edwards. Says it right in his policy. There is a link to the policy above here in this thread. Also specifically talks about Appraisal Fraud.

Sen. Obama's mortgage policy isn't bad. It's just my feeling that it was one more policy put out for the campaign. I'm not sure but I don't think I saw specific mention of mortgage servicers anywhere. Someone please feel free to correct me if I'm wrong.

Sen. Clinton - I've already made my feelings well known in several places about Sen. Clinton. Links to my thoughts and her policy are also above in this thread. But her big idea, above and beyond a fairly innocuous "predatory lending" policy, is to indemnify mortgage servicers from any legal action in order to get them to modify more loans. Does anyone ever involved with Mortgage Servicing Fraud really think that servicers aren't making more modifications because they're afraid of the potential litigation from borrowers? That policy idea is designed to protect the servicers from any investor litigation - not borrower litigation.

Sen. Clinton's camp contacted me back in August we spent about two weeks talking to her staff. They had access to us, our attorney and our litigation. WE had face time with the good Senator and we all spoke with her. And after all that, her reaction is to indemnify servicers from legal action?

After that "experience", I spent some time attempting to contact Sen. Obama and Sen. Edwards about MSF. After several calls to the Obama camp here in town I never got a return call from anyone. Apparently no one was interested enough to chat.

A phone call to the Edwards camp brought an immediate invitation to attend a house party. From there, dialog grew to the point where I was able to spend virtually an entire event of about 45 minutes talking with Elizabeth Edwards about MSF. Towards the end of the conversation she told me something that I had absolutely no clue about. She's a Bankruptcy attorney. There was an actual reason that she recognized Fairbanks and Litton and Ocwen and EMC and all of the concepts that I threw at her. She actually understood what I was talking about.

What was actually even more amazing was the conversation that I had with their daughter, Cate. She got the concept of MSF immediately as well. Here's the kicker there. She's a Harvard Law student. But not only that, she's worked with the Hale & Dorr Legal Clinic. She's taken classes taught by Prof. Elizabeth Warren.

Now, everyone's jumped up and down about Fortress and his involvement with it. And we all know that Green Tree is on our list. But think about it for a minute. How many of us, as victims, knew what was being done to us as it was happening to us? How many of us knew to call it "Mortgage Servicing Fraud"? How many of us simply got a blank stare, or worse, a "quit being a deadbeat and pay your mortgage" when we tried to tell someone about what was happening to us? If we, as victims, didn't know or understand, how can we expect anyone not in specifically the mortgage or securities industry to know or understand. Sen. Edwards simply did not know that he had to make the caveat of "Don't involve me with Mortgage Servicing Fraud." He made it with regard to Predatory Lending but somehow that ball was dropped.

In a very odd, bizarre way, after talking with everyone I have over the last few months, I've come of the opinion that in his own way, John Edwards was affected by Mortgage Servicing Fraud. But when Mortgage Servicing Fraud was brought to the attention of his campaign, something was specifically done to address it.

And since we're talking politics here, let me throw this out. Edwards and Obama are closer on issues than they are apart. The Democratic party, and I believe the country, would be well served by an Edwards/Obama ticket. Democrats would potentially have control of the White House for 16 years if both Senators Edwards and Obama served the people well during their stay. I don't know if a Clinton/somebody ticket is electable. And if it is, I'm afraid of what's going to happen once she indemnifies mortgage servicers from legal action. If you look at the Federal Election Commission and see who's been donating to who's campaign the Clinton donation list is a veritable who's who of the mortgage, banking finance and accounting industry not the least of which is the National Association of Real Estate Investment Trusts. Three of the defendants in my own case are on her list - PMI, Merrill and LaSalle. And PMI used to own Fairbanks. CSFB now owns them as Select Portfolio Servicing. CSFB is on her list. As it, E&Y, D&T and I believe KPMG. So is O'Melveny & Myers and Skadden Arps Meager and Flom.

What concerns me as greatly about Senator Clinton is the fact that she and President Clinton were implicated in White Water. No one seems to remember that today. Real Estate Fraud. The fact that they were found innocent of any wrongdoing while 14 other people were convicted just doesn't make me feel any better. Let me be clear that, as far as gender is concerned, I don't care who runs the United States as long as they are qualified to properly serve the people of the country. As a Mortgage Servicing Fraud victim, I just don't think Senator Clinton has the peoples best interests at heart. 

The bottom line is that after several extremely frustrating months of speaking with, or at least attempting to speak with, various candidates the only one to come up with a policy specifically addressing Mortgage Servicing Fraud well enough on behalf of borrowers is John Edwards.
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Carolyn
WELL SAID.

I wrote to Mrs. Clinton 5 years ago about Conti and then Fairbanks. She did nothing. I got a form letter as a response from her.

If she would have addressed this issue then we may not be here now.

Edwards is my pick also.
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Mike has made a many great contributions but Edwards has been involved in the money trail for laundering stolen homes.

Ron Paul is the only candidate which has addressed cleaning up the whole monetary and lending system and shutting down the IRS and the Fed.

Our stolen assets are funded though the Federal reserve system and laundered and supported by the GSE's Freddie and Fannie Mae Freddie owns a majortity share in Mers and Fannie Mae purchaes these loans.

We have written much here on the forum about our mortages being converted into securites, Mers and multiple title claims.

I fail to see where John Edwards has even begun to adress the fundamental issue of foreclosures for profit. We need to understand why the servicers are foreclosing on our homes and how they profit from the foreclosures before we pick a candidate to stop ms fraud.

These lenders and servicers need to be shut down and the criminals need to go to jail trillions have been looted from this country.

This is a Mafia type operation looting trillions per year and Ron Paul is the only candidate adressing those issues at all. Here an article on Edwards

http://www.washingtonpost.com/wp-dyn/content/article/2007/05/10/AR2007051002277.html

 

Edwards Says He Didn't Know About Subprime Push

By Alec MacGillis and John Solomon
Washington Post Staff Writers
Friday, May 11, 2007; A06

The hedge fund that employed John Edwards markedly expanded its subprime lending business while he worked there, becoming a major player in the high-risk mortgage sector Edwards has pilloried in his presidential campaign.

Edwards said yesterday that he was unaware of the push by the firm, Fortress Investment Group, into subprime lending and that he wishes he had asked more questions before taking the job. The former senator from North Carolina said he had asked Fortress officials whether it was involved in predatory lending practices before taking the job in 2005 and was assured it was not.

Subprime loans are aimed at buyers with poor credit histories and charge higher rates because of the risks. Some loans carry fees and large rate increases that are hidden from a home buyer.

Largely as a result of the rise in subprime lending and the cooling housing market, home foreclosure filings rose to 1.2 million in 2006, an increase of 42 percent. At the same time, the drop in value of subprime lenders has presented a buying opportunity for investors such as Fortress.

Fortress hired Edwards as an adviser in October 2005, nearly a year after his losing campaign as Democratic vice presidential candidate. At the time, it owned a major stake in Green Tree Servicing LLC, which rose to prominence in the 1990s selling subprime loans to mobile-home owners and now services subprime loans originated by others.

Fortress and its partners bought Green Tree in 2003. According to documents filed with the Securities and Exchange Commission in April, its holding in Green Tree was as high as $492.4 million at the end of 2005 -- 4 percent of Fortress's holdings at the time.

Last July, Fortress expanded its stake in the industry by buying Texas-based Centex Home Equity, a top-25 subprime lender, for an estimated $540 million. In December, Centex Home Equity, now called Nationstar Mortgage, bought the loan-origination division of Champion Mortgage, bringing another subprime lender into the Fortress portfolio.

In March, Newcastle Investment Corp., a real estate investment trust managed by Fortress, announced that it, too, was moving into the subprime market with the purchase of a $1.7 billion loan portfolio. Also in March, Fortress bought about $4 billion in subprime loans from Fremont General Corp.

Edwards said yesterday that he recalls being told at the time of his hiring that some of Fortress's private equity holdings did lend to start-up businesses, which is why he asked about predatory lending practices. But he could not recall whether the firm's partners told him it had a major stake in Green Tree.

"Those are the things I remember," he said. "They may have told me more." Had he learned that Fortress owned a loan servicer with a history of predatory lending practices, he said, "I would have asked some very specific questions about it."

Fortress's growing role in the subprime lending market provides a second contrast between the firm's business practices and the positions Edwards has taken as the presidential candidate who has made poverty a major campaign theme. The Washington Post reported last month that Fortress's partners and its foreign investors benefited from the kind of offshore tax breaks Edwards has criticized as a candidate.

Last month, Edwards announced a plan to fight predatory lending. He said that an increase in subprime loans and predatory mortgages was resulting in a surge of foreclosures that risked "devastating communities," and that "shameful lending practices . . . are compromising our strength as a nation."

Edwards said his role at a company with a growing stake in the subprime industry should not be seen as undermining his commitment to helping the poor. He noted that since the 2004 election, he has founded a poverty think tank, started a charity for poor college students and assisted campaigns to raise the minimum wage.

"If you put it in the context of all those things, it's very clear where my heart is and where my commitment is," he said.

Subprime loans have been particularly prevalent in New Orleans, which Edwards has made a focal point of his campaign. He formally announced his bid in a Katrina-ravaged neighborhood there and returned for a visit last week.

The New Orleans Times-Picayune reported in December 2005 on the problem of subprime loan foreclosures after Katrina, citing as an example Green Tree's effort to hold a 67-year-old hurricane victim in default on her subprime loan for a home two months after it was flooded out. Green Tree general counsel Brian Corey said that case was not representative of the company's practices in New Orleans.

Edwards said he asked Fortress this week to find Katrina victims foreclosed on by Green Tree and to help them. "I said, 'This is not okay that this is happening,' " he said. "I don't know how many cases there are . . . but the right thing is to go back and fix this."

Disclosure forms to be released on Tuesday will show how much Edwards was paid for his work at Fortress, which lasted until December 2006, when he stepped down to run for president. He has received $167,460 in campaign contributions from Fortress employees and their families, his largest sum from a single company.

Edwards, a highly successful trial lawyer before entering politics, said yesterday he went to work for Fortress to learn more about capital markets. He acknowledged the job provided a financial benefit at a time when his only other salary was $40,000 from the poverty center.

"I'm 53 years old and have worked my whole life since I was a teenager, and here I was unemployed except for a part-time job, and so I wanted to work and earn an income," he said. "No question that was part of it."

At the time of his hiring, he said, he sought assurance that Fortress was not involved in predatory lending, union-busting or dismantling companies. His work, he said, involved giving the firm insight into Washington and observing trends he saw while traveling the country. Some months found him at the firm's New York offices for several days, and other months he would not go at all, he said.

In hindsight, Edwards said, he does not regret taking the job. "I guess it's my belief that I did learn something about capital markets that's valuable," he said. "I think it's very important for a president to understand how markets operate."

 

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http://www.websitetoolbox.com/tool/post/ssgoldstar/vpost?id=2363118&trail=35

#7 in this thread, Greg..

And later on in that thread...

"Now, everyone's jumped up and down about Fortress and his involvement with it. And we all know that Green Tree is on our list. But think about it for a minute. How many of us, as victims, knew what was being done to us as it was happening to us? How many of us knew to call it "Mortgage Servicing Fraud"? How many of us simply got a blank stare, or worse, a "quit being a deadbeat and pay your mortgage" when we tried to tell someone about what was happening to us? If we, as victims, didn't know or understand, how can we expect anyone not in specifically the mortgage or securities industry to know or understand. Sen. Edwards simply did not know that he had to make the caveat of "Don't involve me with Mortgage Servicing Fraud." He made it with regard to Predatory Lending but somehow that ball was dropped.

In a very odd, bizarre way, after talking with everyone I have over the last few months, I've come of the opinion that in his own way, John Edwards was affected by Mortgage Servicing Fraud. But when Mortgage Servicing Fraud was brought to the attention of his campaign, something was specifically done to address it."

I watched Ron Paul go toe to toe with Ben Bernanke a few months ago and I was very impressed with his knowledge of the inner workings of the industry. I just wasn't sold on him overall. Maybe because I didn't get a chance to talk with him, I don't know. But after having spoken with Mr. and Mrs. Edwards on several occasions and their daughter, Cate, at length, I got enough info and input from them to feel that Fortress wasn't the issue that it appeared to be on the surface.

We've all got our decisions to make with the election. One of the things that I highly suggest is that everyone visit the Federal Election Commission's site or Open Secrets and, just like Mortgage Servicing Fraud, follow the money.
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Thanks Mike I know you have worked long and hard on ms fraud. I definitely understand about meeting with  the candidates and actually getting a  response.

Your 100% right about following the money trail.

I would like to see the root cause addressed far more than medicating the symptoms.
It's a tall order to revise the whole economic system so it's savings based rather than debt based and the powers that be are going to put up a death struggle to maintain their debt based cash cow.

I believe we can completely eliminate ms fraud with enough attention and effort under the current system but believe the lenders and Wall street have far to much motivation and economic machinery in place not to use it to put another scam in place with the same result of ms fraud.

Initially I fought ms fraud from the perspective of legal technicalities, public recognition, and looking for the right lawyer, it later became apparent that following the money trail would yield answers and that is the best bet to understand and attack ms fraud

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srsd

Thanks for the info.  I am in college at this time and haven`t had time to read all of the other post and when I was listening to the news about the debates, I just realized I  really don`t know what is happening with the candidates. I just hear bits and pieces but this weekend, I will read all of the post I have missed.  You are all great with all of the info....thanks again.

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