News related to Mortgage and Foreclosure Fraud

2012

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12/30/05 EMC Mortgage Under Investigation 

Bear Stearns Is Told by FTC to Provide Data for Mortgage Probe

gcresci@bloomberg.net 

Bloomberg

Bear Stearns's EMC Mortgage Corp. unit, which buys and services home loans, received the demand following a Dec. 8 FTC resolution, according to a filing today with the Securities and Exchange Commission. 

(What a great way to end the year!  Happy New Year!)

12/30/05 Mortgage fraud could be classified as racketeering Deseretnews.com/Associated Press Ray's bill also would authorize the state to prosecute violators of the federal Truth in Lending Act. The act is designed to protect borrowers and requires lenders to disclose payment schedules, finance charges, prepayment and late payment penalties, and other information.
2005 ROLAND ARNALL'S AMERIQUEST: America's Public Enemy Number #1 usnewslink.com A few news stories about Roland Arnall, his Ambassadorship, and role in Mortgage Servicing Fraud.
12/28/05 Lenders Target State Laws

An industry that makes home loans to people with poor credit wants uniform federal rules that could undo tougher consumer protections.

Jonathan Peterson, LA Times Staff Writer "We started hearing borrowers come to us saying they had horrible experiences," recalled Martin Eakes, founder of the Center for Community Self-Help in Durham, N.C. "No person of fair mind could look at these loans and not feel like tens of thousands of people in one small state were being taken advantage of."
12/23/05 Lenders hit Katrina victims with fees

Advocate business writer

Some lenders (Ocwen) were charging prepayment penalties of more than 9 percent to people using insurance checks to pay off homes destroyed by Hurricane Katrina -- until they got caught. With everyone so busy rebuilding, they didn't think anyone would notice.
12/15/05 AG REILLY STOPS FORECLOSURE BY LENDER AFTER FINDING DECEPTIVE PRACTICES

Massachusetts

Attorney General

"My office will not tolerate predatory lending, whether it's by big companies or a lone scam artist," AG Reilly said. 
12/14/05 Hot housing market boosted mortgage fraud Reuters Often the fraud officials have found involved other crime as well, including identify theft and the laundering of money generated from illegal activities, such as narcotics sales, the government said.
12/14/05 JALA attorney in foreclosure fight Bradley Parsons

Jacksonville's Daily Record

“In my foreclosure cases, I just started seeing MERS everywhere,” said Charney. “I saw it as a serious threat to erode Florida’s homeownership base, particularly among those people who are on the margins of financial help. I wanted to stop MERS.”
12/13/05

Ad drive focuses on lender ruses 

Laura Smitherman

Sun reporter

 

Former employees of companies accused of predatory lending reveal the skinny on how clients are lured and deceived.
12/11/05 DOMINION HOMES

Dozens of FHA loans covertly converted

The Columbus Dispatch Then she uncovered something else: The same thing happened to 40 of her neighbors. They, too, had signed FHA loan documents prepared by Dominion’s mortgage-brokering division
12/11/05 Preying on the Uninformed Lisa Bernard/ Journal News.com Ohio leads the nation in foreclosures, a problem compounded by predatory lenders and white collar criminals who prey on financially strapped, uneducated consumers, authorities say.
12/7/05 Mortgage Servicing Fraud is REAL!

Avoid being cheated out of your home before it's too late!

Submitted by an anonymous victim. We wish to thank the sender and unknown author who submitted this paper to help those targeted by Mortgage Servicing Fraud. Their experience will open your eyes to what is really happening to you and why.
12/7/05 Rep. Rush no longer facing foreclosure spatterson@suntimes.com Rush was just days from losing his Michigan condo and was also facing being kicked out of his Chicago home because he hadn't been paying his monthly mortgage.   Then --- "poof" --- foreclosures are gone.  
12/2/05

Jury to hear Lending lawsuit

 · High court ruling favors homeowner

Ken Ward

West Virginia Gazette

“The court recognized that families that have been victimized by predatory lending practices have the ability to void their loans and save their homes from foreclosure,” Pomponio, a lawyer with the public interest firm Mountain State Justice, had hoped the court would stand up for the rights of consumers to go to court when they feel ripped off by lenders.
12/1/05 Hurricane Victims' Bills Coming Due

Many Homeowners Face Deadline for Mortgage Payments

Caroline E. Mayer and Terence O'Hara
Washington Post
Their mortgage lender called to say they needed to make all three payments now -- or face late fees and penalties as well as an adverse credit report.
11/30/05

Is real estate fraud getting the green light?

Industry executives point to lenders' tolerance of fraud.
By Neil J. Morse

Inman News

Bruce Morris, executive vice president, quality control, Saxon Mortgage Services, Glen Allen, Va., said deception has advanced so far, so quickly that, "every portfolio in the country has fraudulent loans in it."
11/29/05 OCWEN Hit With $11.5 Million Verdict

Galveston Jury Says Ocwen Federal Bank Forced Woman Into Bankruptcy

PRNews A county jury in Galveston, Texas, has awarded a Texas woman $11.5 million in damages and attorneys' fees, finding that Ocwen Federal Bank engaged in "unfair, unlawful, and deceptive" loan servicing practices. "Ocwen apparently is more interested in taking away the homes of its customers."
11/29/05 Foreclosures Climb to 2005 High Mortgagedaily.com Accounting for 20 percent of the national figure, Texas held the highest number of new foreclosures for the second consecutive month -- up 68% from the prior month.
11/25/05 Federal Influence-Peddling Inquiry Casts Wider Net

Four Lawmakers' Dealings With Lobbyist Are Studied; Low Threshold for Bribery?

Brody Mullins at mailto:brody.mullins@wsj.com

Wall Street Journal

A Justice Department investigation into possible influence-peddling by prominent Republican lobbyist Jack Abramoff is examining his dealings with four lawmakers, more than a dozen current and former congressional aides and two former Bush administration officials, according to lawyers and others involved in the case.
11/21/05 Ameriquest Exec Has Unexpected Backers

Jonathan Peterson,

 Times Staff Writer

That was nearly a decade ago. Today, new allegations of unfair lending practices are dogging Arnall and his ACC Capital Holdings Corp., casting a shadow over his nomination as ambassador to the Netherlands.
11/17/05 Ameriquest Mortgage to Cut 1,500 Workers latimes.com Among other things, the company has been accused of bait-and-switch tactics that inflate costs to borrowers -- a complaint leveled at other subprime lenders in recent years.
11/17/05 Former HomeGold CEO indicted on 10 counts

The State.com

If convicted on all counts, HomeGold's former CEO Ronald Shepard, could face 57 years in prison and over $165,000 in fines for his role in the collapse of Carolina Investors.
11/15/05 Mortgage loans that invite fraud

Daniel P. Lindsey, Supervisory attorney, 

Legal Assistance Foundation of Metropolitan Chicago

In this sense, the big boys are not getting scammed. Or, if they are, they are inviting it. The sad fact is that until the big boys decide that it is in their best interests to truly clean house, much of the fraud will continue unabated, and the real victims--people like our clients--will continue to lose their homes.
11/7/05  Lenders play the foreclosure game
THE COLUMBUS DISPATCH
Another property went into foreclosure in 1999 and was repossessed at sheriff's sale in February 2000, but Bank One didn't record its ownership. The house has a long history of code violations and neighborhood complaints. (Then after a 12 year-old dies at vacant house, the lenders play hide the pea.MSF)
11/05/05 Mortgage fraud is the thing to do now.' By David Jackson
Tribune staff reporter
A white-collar crime wave is raking Chicago's poorest communities, robbing vulnerable families of their homes and draining billions of dollars from the U.S. economy.
11/03/05 Landlord is victor after long battle BY CAROL HAZARD
TIMES-DISPATCH STAFF WRITER
CIT contended that White was in foreclosure and reported him in default to credit agencies. White took the case to court again this time in Roanoke Circuit Court and won $100,000 in damages against CIT in September. 
White obtained a court order Oct. 6 to seize all CIT property in Virginia.
10/27/05 Stop Foreclosure Through Private Equity Investments By Nick Adama Ezine Articles A self-financed investor can purchase the home out of foreclosure and do with it what he will. This can include allowing the original homeowners to live in the property and purchase it back from the investor over time. This creates a mini-economy in the community and decreases the homeowner’s and investor’s reliance on debt financing. The investor will reap a benefit from the monthly income from the property, and the homeowner will be able to stay in the home.
10/27/05

Homeowner's Mortgage Payment Gets Lost In the Shuffle

WSOCTV.com Market Street's Senior Vice President, Charles Richardson, said their research revealed EMC's book-keeping errors prompted the collection efforts.
10/26/05 Lawsuit protests breach of data By Alexander Coolidge
Enquirer staff writer
The mortgages in question were initially Provident Bank loans that were sold to Litton last year.
10/25/05 Cox Proposes Legislation to End Predatory Mortgage Practices Rockbridgeweekly.com “What EMC Mortgage Corporation and others have done to Mrs. Sledd over the past five years is morally reprehensible. The state government needs to be taking decisive actions to prevent EMC, and any other mortgage servicers, from conducting business in such a dishonest way.  
10/21/05 Ameriquest's Ads Reach Beyond Bad-Credit Niche   E. Scott Reckard, L. A Times Staff Writer / latimes.com The Senate Foreign Relations Committee last week delayed confirming Arnall as Ambassador to the Netherlands, saying Arnall should first resolve the investigation of Ameriquest by the states.
10/21/05 Ruling could shake up home equity business

AMERICAN-STATESMAN STAFF

If upheld on appeal, Jenkins' ruling will "turn the whole industry on its head," said Lawrence Young, a lawyer with Hughes Watters Askanase LLP, a Houston firm that represents Ameriquest Mortgage Co. and other lenders.
10/20/05

Ameriquest Founder Hits Snag in Bid for Ambassadorship

By Johnathan Peterson,

 LA Times Staff Writer

The nomination of Roland Arnall for ambassador to the Netherlands hit rough water on Capitol Hill today as some lawmakers advised the founder of Ameriquest to resolve his Orange County mortgage firm's problems with U.S. regulators.
10/19/05 All the President's Men -Ameriquest
Meet the biggest predatory lender in Cleveland America's new ambassador to the Netherlands.
By Denise Grollmus

clevescene.com

Another chapter for the book: "How To Succeed in Becoming Disliked By Everyone In The World And Enjoy It."
10/16/05

Why Some Of You Are Relentlessly Attacked

MSFraud.org contributor They must defend at "all costs" any complaint where they are alleged to be involved in fraud.  If a jury or court rules they have been involved in fraud, then it's a breach and default of their agreements with Fannie Mae.
10/16/05 Bankruptcy won't forestall foreclosure BY SUZETTE HACKNEY
FREE PRESS REAL ESTATE WRITER
"For a lot of people, bankruptcy just prolongs the inevitable, and after filing they're worse off because they've eaten up more equity in their home," Trott said.
10/16/05 How to avoid falling in a foreclosure sinkhole BY SUZETTE HACKNEY
FREE PRESS REAL ESTATE WRITER
Those who have sub-prime loans or creative financing often struggle to make payments as the terms adjust and payments increase over time. Most often the process of foreclosure begins when a homeowner misses three mortgage payments and the loan is considered in default.
10/15/05 Families fight for their homes BY SUZETTE HACKNEY
DETROIT FREE PRESS REAL ESTATE WRITER
"Foreclosures are hitting people at all walks of life here, not just in the poorer areas and not just those who live in the city of Detroit," said Marjorie Whetstine, president of the Western Wayne Oakland County Association of Realtors and an associate broker at Keller Williams Realty in Northville. "It really is becoming an epidemic."
10/13/05 Young lawyer takes aim at equity strippers Neal St. Anthony; Staff Writer
Star Tribune (Minneapolis, MN)
"It appalls me the way people take advantage of other people who are trying to achieve the American dream by hanging on to their house," Weaver said.
10/6/05 New Accounting Woes at Fannie Elevate Broader Concerns 

Regulators Fear Chain Reaction That Could Roil Broader Markets

By DAWN KOPECKI
DOW JONES NEWSWIRES


Administration officials, bank regulators, the Federal Reserve and others began wondering aloud about the potential danger a problem at either company would pose to the broader markets and began sounding alarms that a meltdown of either could set off a chain of catastrophic events throughout the U.S. financial system.

10/05

Giant Mortgage Company Attack's Woman's Home

     The Rockbridge Advocate

With Fairbanks out of the picture and a court order entered, she thought her Mortgage Hell was over.  But it wasn't -- now, it was EMC's turn to terrorize her.

9/24/05

Companies want mortgage money

JAMES R. HAGERTY
and VALERIE BAUERLEIN
The Wall Street Journal

Some sub-prime mortgage lenders are giving less-generous relief to low-income victims of Hurricane Katrina than are lenders that deal with better-off borrowers, an advocacy group said.
9/24/05 Losing the American dream - what's it all about? TNOnline.com Pennsylvania's Carbon County foreclosure rate grew a walloping 35 per cent last year.
9/23/05 MERS Suspends Foreclosures In Florida

...and it has nothing to do with the hurricanes.

  Judge Walt Logan claimed that MERS does not have standing to act as a plaintiff in a mortgage foreclosure suit if it is not the owner of the beneficial interest in the note.
9/22/05 Another Crisis in the Making: Subprime Mortgage Industry Sandbags Katrina Victims; African-Americans Hit Hardest, Says ACORN usnewswire.com  Tens of thousands of homeowners who were displaced by Hurricane Katrina are not being offered the mortgage relief that has been highly publicized in recent weeks, and as a result could face foreclosure by the end of the year.
9/14/05 Ameriquest: Making Mortgages a Little Too Easy cioinsight.com He says he was driven to quit not only by questionable loans, but by the unabashed joy his colleagues took in getting the highest possible rates from unsuspecting borrowers.
9/7/05

Mortgage Company Employees Claim Harassment

Employee: We've Suffered So Much Stress

KCRA.com Employees of BNC Mortgage allege they were the victims of a campaign of retaliation after they began reporting a rash of allegedly false loan documents.
9/7/05 Letting Predatory Lending Back Out of Its Cage PR NewsWire/ CRL These laws ensure homeowners' rights are more than symbolic by providing for meaningful damages and allowing homeowners to defend their homes against foreclosure even after their loans have been sold to another lender.
9/2005 A Brief Primer on Fighting Predatory Lending Practices Melissa A. Huelsman - Attorney State consumer protection act statutes and traditional common law causes of action, including fraud, negligence, unjust enrichment, intentional infliction of emotional distress, and unconscionability, also may enable consumers to prevail in claims against predatory lenders.
8/25/05 Predatory lending suits raise specter of assignee liability.  Allison Pyburn
SourceMedia, Inc.
"It really appears as though Ameriquest is making up people's incomes,"
8/25/05 Sharks in the Housing Pool Dean Foust and Brian Grow in Atlanta In parts of the country where housing prices have risen especially quickly, homeowners have become direct targets of an increasing range of scams. There has been an explosion of "equity stripping" schemes, in which elderly or blue-collar homeowners who have fallen behind on their mortgage payments and are facing foreclosure are preyed on by scammers,
8/25/05 Judge Belts Loan Fraud DON PLUMMER
The Atlanta Journal-Constitution
What we hope is in store for mortgage company reps, CEO's, in-house and outside counsel. The amount of loss and damage suffered by the victims, plus the number of victims were factors in this 30-year/$11 Million sentence. 
8/19/05 Ameriquest loan puts homeowner in a costly bind

Bob Sanders
New Hampshire 

Business Review

A $325 million settlement is not going to help many borrowers, who could lose their homes by the time they see any of the settlement. 
“That may seem like a lot of money, but it’s a blink of the eye to them,”
8/19/05

Predatory lending: There ought to be a law

Carlos Watson

CNN.com

Surprisingly, no national politician is holding a primetime national press conference to discuss this epidemic. It is noteworthy that no senator is threatening a filibuster, and no elected official has suggested a hunger campaign to protest the injustice of predatory lending.
8/19/05 Seizure of Lawmaker's Home Sought by U.S. Attorney
Charles R. Babcock
Washington Post Staff Writer
The U.S. attorney in San Diego is trying to seize Rep. Randy "Duke" Cunningham's California home, asserting in a sealed civil suit that it was purchased with proceeds from a violation of the bribery statute.

8/15/05

Court Upholds Limits on States in Bank Rules

Reuters

California had accused Wells Fargo Home Mortgage of violating state law by charging interest more than one day before mortgages were recorded in county offices, costing about $200 a mortgage.

8/14/05

Out from under the cloud of foreclosure

Some find way to save their home before it's too late

By Scott Jenkins

Salisbury Post

Prosperity Unlimited recently learned that it will be able to help more people in danger of foreclosure with a $100,000 grant from the Foundation for the Carolinas.

8/13/05 Charges swirl around Ameriquest.
Saint Paul Pioneer Press Ameriquest uses aggressive television and online advertising and direct mail to attract consumers by promising low rates. Former Ameriquest employees said they witnessed or participated in forging documents, hyping customer's creditworthiness and hiding rates and fees amid a high-pressure sales environment.

8/13/05

Mortgages For Illegal Aliens: Are Banks The Treason Industry?

By Joe Guzzardi

vdare.com

"Undocumented Latino immigrants would add an estimated $44 billion in new mortgages to the housing economy…"

8/12/05

Embattled Home Lender Gives Heavily to Politicians

John Wildermuth
The San Francisco Chronicle

Ameriquest Mortgage accused of duping low-income homeowners has pumped more than $7 million into California politics since 2002, including contributions to Republican Gov. Arnold Schwarzenegger, plus free Rolling Stones tickets.

8/12/05

The PMI Group, Inc. Announces the Sale of Select Portfolio Servicing, Inc. to Credit Suisse First Boston

BusinessWire

Paying only a $40 Million fine for stealing $100's of millions from homeowners is a great selling tool for the corrupt corporation once named Fairbanks.

8/12/05

TARGET MORTGAGE SCAMS

The Roanoke Times

Mortgage fraud is booming right along with the price of houses, and elderly homeowners with lots of equity are prime targets. Virginia legislators should act. Anybody's parents could be the next to be fleeced.

8/11/05

Dispute of loan papers expands

HELEN HUNTLEY        St. Petersburg Times

The man accusing Ameriquest Mortgage of fraud is trying to get evidence back from his Clearwater lawyer.

8/10/05

Wolves in Small Print

Predatory lenders are putting more Americans in homes — and into the poor house.

Dan McGraw

Fort Worth Weekly

Nationally and in Fort Worth, some of those working in the real estate and mortgage business are also coming forward to charge that the real estate lending business is fraught with fraud. And they are right!

8/7/05

Ambassador Nominee's Company Is Scrutinized

Ameriquest's Roland Arnall, tapped for the Netherlands, is known for good works and campaign gifts. His loan firm, Ameriquest, faces broad accusations.

E. Scott Reckard,  
Los Angeles Times

Lawsuits allege that Ameriquest agents have engaged in fraud, falsification of documents and bait-and-switch sales tactics and richly rewards those who close deals by any means necessary.

8/5/05

Homeowners: Upside-down is no way to be.

So much for the American dream.

CNN Money

Foreclosures could spike and the supply of homes for sale soar. That could send real estate market into a tumble.

8/3/05 Customers accuse Ameriquest of excessive fees, altered terms.

Kimberley Blanton

 Boston Globe

Reilly's office said, "any resolution will require a significant payment by Ameriquest, including restitution to harmed consumers."

8/3/05

Customers accuse Ameriquest of excessive fees, altered terms

By Kimberly Blanton, Boston Globe Staff  

Ameriquest Mortgage Co., which disclosed last week it reached a tentative $325 million settlement with Massachusetts and 29 other states over allegations of deceptive sales practices, faces lawsuits nationwide by customers who said the subprime lender charged them excessive fees or changed the agreed terms on refinancing loans when they arrived to sign the final documents.

8/1/05 Don't Bank On A Safe Mortgage

CBS News Correspondent

 Trish Regan

"When the banks are having to foreclose on loans nowadays, they're actually making money when they flip the house," Ahag said.
Federal Reserve Chief Alan Greenspan believes that next to rising energy prices, these potentially risky loans are the biggest threat to the economy.
7/27/05 Minnesota law targets foreclosure scams

Minnesota officials are watching to see if a state law is helping protect people from mortgage foreclosure scams.

  7/27/05

 My Meeting With A Mortgage Broker

 

Two different views to buying a home.

7/19/05

Canadian Homebuyer Beware

Suneel Khanna

NewsWire

O' Canada. Are you scamming your homeowners?

7/15/05

Chaos erupts when lender's mistake brings foreclosure sale

Bank of America fails to cancel action after homeowners make late payment.

By Robert J. Bruss
Inman News

Bank of America accepted the missing mortgage payments from the borrowers and reinstated their home mortgage. But the lender failed to cancel the scheduled foreclosure sale, although it had four days to do so.  That is Bank of America's idea of Higher Standards?

7/14/05

Commissioner Announces Settlement Between State of Connecticut and Ameriquest Mortgage

State of Connecticut

Ameriquest's imposition of prepaid finance charges in connection with the internal refinancing of first mortgage loans which were less than two years old and exceeded the greater of five percent of the principal amount of the initial loan or $2000 combined with the Companies' failure to register loan originators became the basis for this agreement.

7/14/05

I-Team: Mortgage-Servicing Companies

with VIDEO

Joe Bergantino

CBS 4 Boston

And Litton isn't the only mortgage servicing company being accused of forcing homeowners into foreclosure.

7/12/05 My Name Is Lawrence Green

Antoinette Green

Mr. Green's daughter

I have a story to tell about Ameriquest and a loan that I obtained, unfortunately I cannot tell it myself but I hope I have left enough information for Bob, George and their friends to tell my story for me.
7/11/05 Predatory loans hard to define, troubling when you have one Scott Jenkins

Salisbury Post

At any given time, attorney Beth Bebber might be assessing dozens of foreclosure cases for possible legal defenses. This report includes a summary of the N.C. anti-predatory lending law passed in 1999

7/9/05  

Predatory lending problem getting worse, officials warn.

Jaclyn Giovis
Dayton Daily News

Since 1999, the number of mortgage foreclosures filed in Montgomery County has skyrocketed 225%. Although it is difficult to determine exactly how many of the foreclosures result from predatory lending, McCarthy estimates it's at least 60 percent.

6/17/05

Crackdown on Real Estate loan servicing fraud

Illegal home loan fees part of larger scam.

By Janis Mara
Inman News

Mortgage servicing companies have been accused of charging illegal and excessive fees either for late payments or products, defrauding consumers out of their money and even causing them to lose their homes.

6/10/05

W.Va. reaches settlement with mortgage service companies.

Jennifer Bundy THE ASSOCIATED PRESS

The illegal fees included excessive late fees, property preservation and inspection fees, corporate advance fees and broker price opinion fees.

6/4/05

Con Artists Play Troubling Game: Grand Theft Home

Sandra Fleishman
Washington Post Staff Writer

But knowledgeable lawyers are few, and homeowners in distress often cannot afford them, say consumer groups. And the cases are so complicated that it takes more time than many lawyers want to spend.

6/9/05

First Alliance Mortgage Settles "Predatory Lending" Charges For Up To $60 Million

Kenneth Harney

RealtyTimes.com

In what officials called the largest case of its kind in history. As much as $60 million from the assets of First Alliance will be distributed to an estimated 18,000 homeowners around the country.

June

2005

Report

DREAMS FORECLOSED

The Rampant Theft of American Homes Through Equity-Stripping Foreclosure "Rescue' Scams

National Consumer Law Center If a tsunami were to sweep across America, selectively taking with it thousands upon thousands of people’s homes, would the news media cover it? 

What if many thousands of people awoke one morning to find their retirement savings suddenly missing? Would the Congress take note? 

Well, something quite similar is going on. Homes are literally being stolen from their owners all over the country.

6/1/05

Banks are Quietly Wooing Undocumented Immigrants

American Banker As Washington signals a more lenient immigration policy toward the nation's eight million to 11 million undocumented aliens, U.S. banks like Fifth Third, North Shore Bank and Second Federal Savings & Loan, are quietly courting this group for home mortgages.
June 2005 Investors Recognize Synergies Between Loan Buying And Warehouse Lending

“It’s a good business, but many people have gotten into it without really understanding it.”

MICHAEL J. KLING -mortgageOrb  Players are both entering and exiting the business as companies see the rewards and are burned by fraud, says Reynolds, a veteran of the sector. Returns on investment can be over 20%; however, the business poses risks, with fraud being the biggest danger. A warehouse lender can be victimized by fraud no matter how careful it is.
May 2005

LOAN REPURCHASES: CRITICAL ISSUES TO KNOW


The lender should begin the resale
process as quickly as possible.

Nautilus Capital The cost of an occasional loan repurchase is small in comparison to the profits from originating many 
more good loans. Managed properly, loan repurchases need not be anything more than another cost of 
doing business.

5/31/05

Record foreclosures, lender fraud 

and the OCC and HUD do NOTHING

Creditsuit.org

It is so incredibly frustrating to see how people made their payments, but the lenders or servicers stole their money, lied to them, refused payments made as agreed, refused to provide accounting, cram down horrible modifications ...  and there’s nothing I can do to help.

5/26/05

Latinos falling victim to predatory lenders

By Rachel Uranga, LA Daily News

Fortunately, Esquivel hired an attorney and was able to stop the foreclosure. He is now in legal proceedings against the lender, which the California Department of Corporations shut down last year.

5/26/05

A.I.G. Is Said to Have Had a Tight Rein on Offshore Insurer

By LYNNLEY BROWNING

New York Times

A.I.G., according to a former senior executive, used Richmond and Union Excess as "dumping grounds" for poor-performing insurance policies it had sold to clients. The clients then filed large claims, causing losses A.I.G. did not want to report.

5/25/05

Sun Staff

Spitzer, in an earlier statement, called the proposal a "shameless attempt" by the industry to undermine consumer protections that have been in place for decades to protect low-income, elderly and minority consumers.

5/25/05

Appraisal fraud: your home at risk

By Sarah Max, CNN/Money senior writer

"There are a lot of people who have refinanced for more than their homes are actually worth and they're effectively already upside down."

Must read

5/24/05

 Advocates Draws Link between Predatory Lending and Mortgage Servicing Abuse in America

PRWeb.com

D.C. Firm's Briefing Paper concludes that the curable scourge of Mortgage Servicing Fraud and Abuse is destroying the American Dream.  Mortgage servicing fraud and abuse by unscrupulous mortgage companies and their agents is stripping working families of home equity and, in certain instances, foreclosure.

Must read

5/23/05

Has Predatory Mortgage Servicing Destroyed the American Dream?

Rawle Andrews Jr., Esq

Leroy Jones Jr., JD

Predatory mortgage servicing is the scourge on the American Dream. Next to life and death, there are few, if any, human events that equal the condition of being a property owner with a tangible stake in today's reality and tomorrow's promise. 

5/23/05

Seven Signs.

Summary of Mortgage Servicing Fraud Offenses

Andrews and Bowe, PLLP

Excerpt from the above article.

5/22/05

Cases of Mortgage Fraud Mounting

Michele Derus
Chattanooga Times Free Press

Warning that millions of dollars are being siphoned from the mortgage market via money-laundering schemes and fraud for profit.

5/20/05

NY Attorney General Eliot Spitzer against 'shameless' banking regulation proposal

Heather Fletcher
Long Island Business News

"This is another shameless attempt by the financial services industry to undermine state consumer protection laws,"

5/19/05

10 News Extra: Mortgage company accused of massive fraud.

By:Mike Deeson

WTSP Channel 10 News

Ameriquest is accused of falsifying income levels to get larger loans than client could afford and failing to include escrow charges for insurance and taxes in the monthly payment so it appeared lower.

5/18/05

Dumbest Squaliforme of the Month Award

The Honorable

Judge Roy Bean

Humorous paper about the "dumber than a box of rocks" EMC Mortgage and their "Three Stooges Play Lawyer."

5/13/05

Wamu Is Ordered to Rehire Staffer

By Joseph Hallinan

The Wall Street Journal 

The U.S. Labor Department ordered Washington Mutual Inc. to rehire an executive it fired last year after she complained of irregularities in its home-loan division. 

5/12/05

Costly Loan Could Cost Her a Home

wtrf.com Channel 7

As a result, her monthly mortgage payment has gone up every six months since being sold to another lending company.

5/12/05

Lenders Accused in Scam

Defendant says the mortgage companies condoned fraud.

By STEVE PATTERSON The Times-Union

A real estate guru charged with running a mortgage fraud scam is using his trial in Jacksonville's federal court to accuse lenders of complicity in millions of dollars of questionable loans.

5/9/05

Fraud Complaint Expected Against General Re Executive

NYTimes

According to insurance industry executives and others briefed on the matter, the doctoring of paperwork related to the questionable transaction between General Re and A.I.G. Insurance executives refer to such alterations as "repaperings."

5/05

FBI Financial Crimes Report on Mortgage Fraud

Federal Bureau of Investigation

Based on various industry reports and FBI analysis, mortgage fraud is pervasive and growing.

5/3/05

Regulators Rattle Zurich and AIG

FinanceNews.com

AIG has acknowledged that its accounting for the transaction with General Re was improper. The investigation by New York Attorney-General Eliot Spitzer earlier this year claimed the scalp of AIG's long-serving chief executive, Maurice Greenberg.

5/3/05

Interagency Advisory on Accounting and Reporting for Commitments to Originate and Sell Mortgage Loans

Office of Thrift Supervision

Our review of Thrift Financial Reports (TFRs) indicates that not all savings associations are following the appropriate accounting and reporting.

5/2/05

Georgia Toughens Residential Mortgage Fraud Law

By Jenifer Putnam
TBR Staff

A felony conviction for residential mortgage fraud is punishable by one to 10 years imprisonment and/or a fine up to $5,000. If someone is found guilty of multiple frauds, imprisonment increases to three to 20 years, and up to a $100,000 fine.

5/2/05

 

High Court Rejects EMC Mortgage Arbitration Ruling Appeal

Dow Jones Newswire

EMC Mortgage was "a wealthy debt collector that flouts the law" and added the courts were right to allow a sizable punitive damages award as "the only way to stop this debt collector's continuing reprehensible conduct."

4/25/05 QSPEs Distort Fannie's Books National Mortgage News  

4/18/05

Mortgage Scams Cost Americans Tens of Millions of Dollars Each Year

Originator Times

Much of the law breaking is well known but is not openly discussed. "Fraud is America's little mortgage secret, and it's scary," Hummel said. "It touches those who know it's occurring and those who don't even suspect it."

4/15/05 Appraisal Fraud Likely Greater Than Reported

Broderick Perkins 

Realty Times

Stephen G. Bishop, turned his appraiser's license back into California's Office of Real Estate Appraisal after being fired thrice consecutively because he refused to inflate residential real estate appraisals.

4/14/05

Sold Out
Mildred Avery thought she had a sweet deal to keep her house. Wrong.

DallasObserver.com

Facing eviction, Avery tried to forestall the foreclosure by EMC Mortgage, which had purchased Stenline's note from Sebring, but Judge Ann Ashby refused to grant a restraining order. Avery then filed a lawsuit against EMC Mortgage.

4/6/05

Fannie Mae's Trust Fund Troubles

By Peter Eavis
TheStreet.com

Clearly, the Fannie mess is nowhere close to being cleared up.

4/6/05

Lawsuits accuse lender (Ameriquest) of fraud.

HELEN HUNTLEY, Times Personal Finance Editor

Ameriquest's Tampa office used inflated appraisals, lied about interest rates and fees and falsified documents to pump up business.

4/4/05

Mortgage Industry May Owe Homeowners Billions For Overcharges 

PRWeb.com

Overcharging the homeowner and or out right fraud have reached epic proportions in the U.S. mortgage markets, according to the Justice & Integrity Project.

4/4/05

Outside Audit
Ofheo Is Looking at Fannie Mae's Accounting for Trusts

JONATHAN WEIL, DAWN KOPECKI and JAMES R. HAGERTY 

THE WALL STREET JOURNAL

As accountants and regulators continue to sift through Fannie Mae's books, they keep finding new reasons for investors to be nervous.

3/31/05

The $2 Million Dollar Flip-Flop

TomPayne.com

Why would 18 Senators, including co-sponsors of the original measure, vote for a tougher pro-consumer measure in 1991, and then vote against a weaker measure in 2005? Could it be that the more than $2 million these Senators took from the credit card/banking industry in the interim made them change their mind?

3/28/05

Doubt Is Cast On Loan Papers

By E. Scott Reckard and Josh Friedman

Los Angeles Times

Plaintiffs say identical entries for 3 different Ameriquest borrowers bolster claims of fraud.

3/17/05 False Signatures At Fannie Mae Tied to Employees James R. Hagerty and Dawn KopeckiWall Street Journal  Ofheo accused Fannie of violating accounting rules as part of an effort to make its earnings appear less volatile.

3/15/05

States Follow Long Trail of Complaints Against Lender

By E. Scott Reckard and Josh Friedman

Los Angeles Times

"Ameriquest has violated not only the letter of our law," he said, "but also the spirit of our agreement that gave them a second chance."

3/14/05

Ameriquest under scrutiny in 25 States; separate class action settled

housingchoice.org

Members of the class number approximately 62,000 residents of California, Alaska, Texas, and Alabama.

 

 

Predatory Grizzly "Bear" Attacks The Innocent With Predatory Lending Scams & Frauds

Nye Lavalle

The Story of Bear Stearns Direct Involvement In And Support Of Predatory Mortgage Fraud In America!

3/10/05

HUD, Lawmakers Challenge Fannie Defense In Mortgage Fraud Case

By DAWN KOPECKI
DOW JONES NEWSWIRES

Fannie in early December reluctantly signed a consent order with the Justice Department to pay $7.5 million for its entanglement in the fraud.

3/9/05

Fannie Regulator Tightens Its Grip, 

Ofheo Sets New Conditions To Correct 'Deficiencies'; Office of Compliance Created

JAMES R. HAGERTY
  WALL STREET JOURNAL

Rep. Richard H. Baker (R., La.), chairman of a House subcommittee that oversees Fannie and its smaller rival, Freddie Mac, said the agreement "raises many disturbing questions, especially about tampering with records, and we need to know the nature of the records and the extent of this outrageous practice."

 

Where Does the Money Come from for Mortgage Loans?

RealEstateABC.com

Once Freddie Mac, Ginnie Mae, and Fannie purchase the pools, they break them down into smaller ownership parcels. These are called "mortgage backed securities." Each security represents a small ownership interest, not in your specific loan, but in the pool of which your loan is only one part. The risk is therefore diversified and it is a very safe investment.

3/4/05

House Panel To Look At Fannie Mae's Role In NC Fraud Case

By DAWN KOPECKI
DOW JONES NEWSWIRES

Fannie agreed in early December to forfeit $7.5 million in tainted funds. A consent order with the Justice Department said the mortgage giant accepted millions in "criminally derived" proceeds it knew had been pilfered.

3/2/05

Illinois Pressures EMC's parent company Bear Stearns Over Documents

Dow Jones Newswire

The state warned of severe consequences for failing to comply, saying that the hearing would determine whether Illinois should impose a fine or other penalties, including revoking Bear Stearns' license to do business in the state.

3/2/05

Wells Fargo Says It Has Put Foreclosure Of Soldier's Home On Hold

newsnet5.com

Kansas Soldier Is In Iraq; Wife Worries About Keeping Home. 

2/28/05

Mortgage Industry Waking Up to Fraud

Indianapolis Business Journal

To some observers outside the mortgage industry, a desire to generate as many mortgages as possible at the lowest cost has contributed to the rise in fraud.

2/24/05

Capital City Mortgage Settles FTC Charges

FTC.gov

FTC filed a complaint against Capital City Mortgage  alleging that the defendants deceived consumers about various loan terms, resulting in serious injury to borrowers.

2/24/05 Set Aside Foreclosure and Decree and Motion for New Trial

Kenneth DeLashmutt

In a foreclosure, if a default judgment is entered you can file a Motion to Set Aside Foreclosure & Decree and Motion for New Trial. This motion seeks relief from the judgment of foreclosure on the ground that the lenders failure to produce the original of the promissory note is newly discovered evidence justifying a new trial.

2/24/05

Ditech's Flat Fee Mortgage Promise

klastv.com

Consumer Reports Money Adviser checked out Ditech's deal and found that the offer is not what it seems.

2/23/05

Special Report: Could Mortgage Servicing Fraud Happen to You?

  TV station KEYC

The Childs will get to keep their home for now, although their legal battles with EMC Mortgage will continue.

2/21/05

Ameriquest Allegations Lead To Solid Investigative Work.

By Kevin Sweeney
Managing Editor, BusinessJournalism.org

The sub-prime mortgage industry is a business model that breeds complaints. I was very concerned with being fair to Ameriquest. We did public records  requests to state and federal regulators and it turned out that the number of complaints for Ameriquest far outpaced others in the industry, even when you factor in volume of loans.

2/19/05

Dream Home Disasters Uncovered (Ameriquest)

wpvi.com

The banking department there has filed to prohibit Ameriquest from operating in the state.

2/11/05

Senate Approves Measure to Curb Big Class Actions  

By STEPHEN LABATON
nytimes.com

Limiting corporate accountability at a time of rampant corporate scandals. Now there's a move in the wrong direction.

2/8/05

The Struggle to Stop Predatory Lending and Foreclosure Fraud

eMediaWire/

Andrews and Bowe, PLLP

Resident files $3 Million Federal Lawsuit against ABN AMRO Mortgage Group.

2/4/05

Workers Say Lender Ran 'Boiler Rooms'

By E. Scott Reckard and Josh Friedman

Los Angeles Times

Critics say Ameriquest, touted as an industry model, fabricated data, forged documents and hid fees.

Feb. 2005

The Detection, Investigation, and Deterrence

of Mortgage Loan Fraud Involving Third Parties: A White Paper

Federal Financial Institutions Examination Council

The following interagency white paper focuses on ways that financial regulators and the industry can detect, investigate, and deter third party mortgage fraud.

The Genealogy of Wall Street Crime

Steve Fraser Today, faced by financial meltdowns so stupendous they make previous debacles seem almost benign, we continue to lock people up. But we have nearly abandoned the attempt to address the systemic origins of the disease through legislative reform. The Sarbanes-Oxley Act, which followed the collapse of WorldCom, was quite limited in reach -- yet was nevertheless bitterly attacked by business.

1/29/05


The Atlanta Journal-Constitution

You're likely to find you can be considered in default if you are one day late with your payment.

1/29/05

Harsh lending laws fail consumers


Atlanta Journal-Constitution

About one in seven legislators is involved in the lending business, one of the state's most politically connected. Bankers and other creditors spend big money persuading lawmakers to adopt their points of view. They typically succeed.

1/29/05

 Swift foreclosures dash American dream


Atlanta Journal-Constitution

"Instead, because she lives in Georgia, where there are few or no protections, she is targeted for an abusive loan that could cost her her house and is making investors on Wall Street rich."

 

Texans for Gun Safety

 

1/28/05

Group opposing predatory lending to set up in Akron


Beacon Journal 

The coalition was founded in 1993 and is funded largely by philanthropic foundations, Seifert said. It takes a grass-roots approach to identifying issues and deciding on strategies to combat problems.

1/21/05

PMI Group Plans Deal With CSFB

Associated Press

PMI Group Inc. said it will give Credit Suisse First Boston the option to buy its stake in Select Portfolio Servicing f/n/a Fairbanks.

1/21/05

What If Companies Fessed Up?

businessweek.com

By Adrienne Carter-Chicago, 

Amy Borrus in Washington 

Massachusetts' William Galvin is pushing for admissions of guilt in fraud cases.

1/18/05

Fannie Mae Knew Ginnie Was Possible Fraud Target

Dawn Kopecki

    Dow Jones Newswires

This history lesson explains why illegal foreclosures were used and innocent homeowners/families had to be destroyed to cover up this fraud.

1/11/05

Woman in fraud case is told to get lawyer

Peter Rogers faces a maximum of 46 years in prison and $820,000 in fines.

jbewley@phillynews.com.

When it's the mortgage company who defrauds homeowners, the courts let them go free with no fine. 

1/8/5

E&Y in Settlement To End Bank

Ernst & Young and federal regulators have settled their long-running feud over the failure of Superior Bank FSB.

Nationalmortgagenews.com In December 2001, the FDIC sold the thrift’s residuals with an approximate book value of $600 million to Bear Stearns/EMC for $290 million.

1/6/05

A Canadian Investor's Warranted Suspicions into Fannie Mae Trade

Rob Kirby

An excellent letter to Elliot Spitzer asking for an investigation into Fannie Mae.

1/6/05

Penalizing Homeowners

Rich Lord

Ameriquest Mortgage is bringing you the Super Bowl’s halftime extravaganza -- but critics contend it roughs up borrowers and encroaches on their homes.

6/4/08 Ed McMahon's home faces foreclosure CNN There were nearly 650,000 foreclosure filings -- which include notices of default, auction sales and bank repossessions -- issued during the first quarter of 2008.

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