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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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Article  (Recent Additions) Author


  Fairbanks Fitch rating report   A detailed view of Fairbanks' operations.

Eliot Spitzer Takes on Feds Again, This Time Over Bank Regulation.

Jathon Sapsford     

Wall Street Journal

  Fairbanks Settlement Agreement and Release   Curry v. Fairbanks


Real Estate Fraud Investigations Increase

Internal Revenue Service -IRS Through federal tax fraud investigations and money laundering charges, the Internal Revenue Service is playing a key role in the fight against real estate fraud. (Need any cheerleaders?)
  Top Residential Subservicers National Mortgage News Who really is servicing your loan?
12/17/03 Avoid the Home Equity hangover CNN Money The enticement could dig a hole you can't get out of.
12/10/03 In Congress, it's been a Banner Year For Banks American Banker  


Securities Fraud investigation charges Bear Stearns Edgar Snyder & Associates EMC Mortgage's parent company pays 1.4 billion fine.

Mortgage Nightmares Come True

Kweku's First Amended Verified Complaint

Ocwen's Response to CBS News

CBS News Correspondent Randall Pinkston. Kweku Hanson claims Ocwen tacked on homeowner insurance he didn't need, and never credited the thousands in extra payments he'd made on his loan.



Letter to The Honorable Kenneth M. Donohue, Sr., Inspector General, US Department of Housing and Urban Development

The MSFraud Webmasters

A Thanksgiving-week letter we should all take the time to write in our own way and send to your Representative and Senators.
11/21/03 Thou Shalt Adhere to 'Best Practices' Kenneth Harney Another insightful article by Ken Harney!
11/20/03 Saving yourself from predatory mortgage servicers Holden Lewis, A good review of the Fairbanks saga and some useful consumer information.
11/20/03 Consumer Watch - Homes imperiled by a strange firm   Jeff Gelles, Columnist Philadelphia Inquirer    More major media picking up on individual victim stories
11/14/03 Mortgage company to pay $40m in compensation   GENARO C. ARMAS, The Associated Press   One of the better representations of the situation and the news conference.
11/13/03 Local couple among loan firm's victims   MARC SCHANZ,      Staff Writer,                Imperial Valley Press   Another very interesting article about a victim in California.



Getting Good Mortgage Service? Find Out How To Check

WSB-TV Atlanta Government Urges Consumers To Keep Track Of Records
11/13/03 Mortgage Servicer Must Pay Borrowers   Daniela Deane, Washington Post       Staff Writer   Another viewpoint on the Fairbanks settlement.
11/13/03 Mortgage Servicing: Making Sure Your Payments Count   Federal Trade Commission   Link to important information from the FTC about your rights regarding mortgage servicing.
11/13/03 Fairbanks Critics May Now Focus on Ocwen   Erick Bergquist, American Banker   More attention on another shark!
11/12/03 Mortgage servicer, regulators to reveal $40 million settlement - Response to complaints about a booming industry   Trif Alatzas,        Baltimore Sun   Extensive and detailed coverage including a quote from Ocwen President

Credit agencies sending our files abroad  

David Lazarus,             San Francisco Chronicle   More credit data worries and lies!
11/6/03 Senate expands protections against ID theft   JESSE J. HOLLAND,   The Associated Press   A good example of just how powerful the credit data industry is!
11/5/03 BMA: Predatory Lending Curbs Shouldn't Harm Subprime Market   Deborah Lagomarsino, Dow Jones Business News   The bond investors don't want to take any responsibility for financing predators!

Mortgage fraud sweeps Charlotte

Rampant mortgage fraud in the Charlotte region is swindling millions from lenders and leaving naive home buyers financially ruined.


News First Investigates mortgage companies Colorado Springs There are federal laws offering consumer protection, but there's a lack of enforcement. 
10/27/03 Mortgage firm draws complaints   Olivera Perkins, Cleveland Plain Dealer Reporter   Good information and a mention of the involvement of Cleveland's ESOP.
10/24/03 SLC mortgage firm settles to avoid charges Lesley Mitchell, The Salt Lake Tribune Knight Ridder/Tribune Business News   Interesting to see a quote from victims in this one.
10/22/03 UPDATE - U.S. mortgage lending seen plummeting in 2004   Aleksandrs Rozens, Reuters
10/15/03 The Financial Equivalent of AIDS   unknown
10/15/03 Clevelanders want to stop a notorious mortgage company. 

The state of Ohio won't help.

It's time for the politicians to step up, Anderson says. "We're not looking for them to do more," she says. "We're looking for them to do something."

10/15/03 Credit counselors face IRS investigation Jennifer Bayot,           NEW YORK TIMES   Beware Credit Counseling - and now the IRS is looking into them!
10/15/03 EquityLink faces class-action lawsuit

Denver loan firm is accused of peddling predatory program.

Roger Fillion,             Rocky Mountain News   Important warning for victims - don't get trapped into something like this!
10/13/03 Is This Any Way To Run A Bank?

WaMu's alleged blunders have it fending off lawsuits and complaints

Stephanie Anderson Forest


In August, the bank settled a Seattle lawsuit alleging that WaMu had lost mortgage payments, posted payments late or improperly, charged erroneous fees, and filed inaccurate reports to credit agencies
10/10/03 Fitch Ratings Investigates Salt Lake City-Based Fairbanks Corp. on Service Lesley Mitchell, The Salt Lake Tribune Knight Ridder/                    Tribune Business News   More fun and games, this time messing with the investor side of the scam!
10/6/03 Lawsuit vs. Chevy Chase Revived by Appeals Court   Laura K. Thompson, American Banker   More evidence that the financial industry will fight to the bitter end even when it knows it's wrong!
10/2/03 Texas probes Washington Mutual mortgage business   Reuters Washington Mutual meet Tex!
9/29/03 HUD Settles Case Against Atlanta-Based Lender and Broker Accused of Phony Hiring of Real Estate Agents   PR Newswire   More Znet creativity exposed!


'Predatory Lenders' Foreclose on Hundreds'

More than 1,600 West Virginians lost their homes.

Sunday Gazette-Mail
 By Ken Ward Jr.


'Does not include attempted foreclosures by Fairbanks Capital Corp. and EMC Mortgage, two large companies that are defendants in a statewide class-action lawsuit over their lending practices.'
9/25/03 Up Next, Best practices for Servicing Biz   Erick Bergquist,            The American Banker   Some of the usual suspects and an interesting name at the FTC.
9/14/03 Increasing foreclosures, delinquencies raise fraud threat   A. LEE GRAHAM , STAFF WRITER,      Plano Star Courier   Outstanding article from the leading newspaper in one of America's fastest-growing cities
8/19/03 California Assembly Passes Strongest Financial Privacy Reforms in Nation   unknown  
8/7/03 Fannie Mae's Loss Risk Is Larger, Computer Models Show ALEX BERENSON - New York Times Fannie Mae, the giant mortgage finance company, faces much bigger losses from interest rate swings than it has publicly disclosed, according to computer models used by the company to estimate the value of its assets and debts.
7/13/03 Complaints filed against Fairbanks Capital   PR Newswire   Atlanta, GA Business News item
7/11/03 Fitch Ratings Comments on Fairbanks' Alt-A Servicing Platform   Businesswire   Fairbanks has people problems in Austin!
7/8/03 Mortgage Giants May Be in Trouble; 

A recent accounting scandal at Freddie Mac has critics questioning whether it and Fannie Mae should remain exempt from legal and regulatory rules others must follow

John Berlau, INSIGHT Fannie Mae's new program, PaymentPower, in which borrowers may skip as many as 10 payments over the lives of their mortgages, creating new obligations with interest to Fannie Mae as well as new debts. "PaymentPower puts Fannie into consumer lending," Watts warns. "There's a lot of concern there, from predatory lending to taking equity from a homeowner to consumer lending that's outside of their secondary-mortgage charter." FM Policy Focus has charged that PaymentPower could hit consumers with effective interest rates of up to 69 percent.

Washington Mutual & automatic withdrawals Because the industry sets its own rules and has unlimited access to your funds, banks can come in whenever they want and take money you don't owe..
6/17/03 Lehman Bros. Held Liable in Fraud Case E. Scott Reckard, LATimes

A federal jury Monday held Lehman Bros. Holdings Inc. accountable for fraud at an Irvine mortgage company it helped finance, saying the investment bank aided and abetted a First Alliance Corp. scheme to cheat borrowers. The verdict marked the first time a financial backer of an abusive lender has been held liable, carving out a new area of vulnerability for Wall Street. The 10-person jury in Santa Ana said Lehman not only knew that First Alliance engaged in fraud but also "substantially assisted" the deception.


Has Fairbanks Cleaned Up Its Act?

Controversial mortgage-servicing company claims it has, but many customers doubtful.


The New Mexican  

Another revealing article with quotes from folks we know!

Citi Board the Worst, Study Says

John Goff, Citigroup had agreed to pay $400 million to settle charges that Citi and nine other investment banks had allegedly issued pollyanna stock research to curry favor with investment banking clients.


Consumers & government fight abusive loan servicers. Holden Lewis - You can't choose your mortgage servicer, but you can strike back if your servicer mistreats you.


Loan Shark Attack

Rich Lord Rep. Bob Ney battles to protect banks from you, the pesky consumer.
5/9/03 Loan servicer gets a downgrade Adolfo Pesquera, San Antonio Express-News Fairbanks Capital is being investigated after many complaints.
4/25/03 Banker Sued Over Alleged Home Foreclosure Fraud Bob Mims,                   The Salt Lake Tribune   Litton Loan & C-BASS playing another illegal foreclosure angle!
4/3/03 S&P Lowers Servicer Rankings on Fairbanks Cap to BELOW AVERAGE.   Business Wire   An 18 month investigation only validates consumer experiences

Official Axed, Exposed Threat
Of U.S. Housing Bubble Crash

Executive Intelligence Review. Armando Falcon, director of the U.S. Office of Federal Housing Enterprise Oversight, was forced to resign, after issuing a report showing the underlying weakness of the U.S. housing market and financial system.
3/3/03 Who Is Guarding The HUD Guards? By Martin Edwin Andersen

Insight magazine

It was a question raised yet again when media attention focused on pistol-packing Inspector General Janet Rehnquist at the Department of Health and Human Services (HHS) and allegations of document shredding in her office, long considered a model by internal investigators at other agencies. But the epicenter of complaints of wrongdoing by those in charge of policing key government functions may be the Office of the Inspector General (IG) at the Department of Housing and Urban Development (HUD). 
2/11/03 Gershuni & Imrich Files Suit to Save Irvine Family from Foreclosure   Business Wire   Another story where an attorney took on Litton Loan Servicing


Lenders' Overstated Claims Shouldn't Doom New (Georgia) Law

Atlanta Journal Constitution Standard & Poor's doesn't like a provision in the Georgia law that allows cheated borrowers to hold the current holder of their mortgage liable if the loan is found to be illegal.
  Borrowers Beware By Teresa Dixon Murray
Reporter, The Plain Dealer, Cleveland, Ohio
Tom, who has spent several hours every week for the last 16 months trying to fix the problems, says he can no longer stand to think about what the lender has done to his family. "I'm so tired," he says. "Things happen, little things, and I can't take it. Mentally I'm losing it. Why can't somebody do something so this doesn't happen to people?"