15-page bank proposal | FORECLOSURE FRAUD | by DinSFLA - Part 2

Tag Archive | "15-page bank proposal"

Mortgage servicers, OCC meet privately on consent orders

Mortgage servicers, OCC meet privately on consent orders


Housing Wire-

The Office of the Comptroller of the Currency met with the 14 mortgage servicers Friday over details in the recently signed consent orders, sources familiar with the matter confirmed.

The orders are meant to settle recent foreclosure investigations. According to the orders, servicers must retain an independent firm to review foreclosure actions pending between Jan. 1, 2009 and Dec. 31, 2010. The review will be conducted to determine any financial injury to borrowers caused by the errors, misrepresentations or other deficiencies.


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

STATEMENT BY CT ATTORNEY GENERAL GEORGE JEPSEN CONCERNING MORTGAGE FORECLOSURE INVESTIGATION

STATEMENT BY CT ATTORNEY GENERAL GEORGE JEPSEN CONCERNING MORTGAGE FORECLOSURE INVESTIGATION


ATTORNEY GENERAL GEORGE JEPSEN
STATEMENT BY ATTORNEY GENERAL GEORGE JEPSEN
CONCERNING MORTGAGE FORECLOSURE INVESTIGATION

For immediate release ……………………………………..TUESDAY MAY 17, 2011

“The multistate investigation of the nation’s largest mortgage servicing companies confirms what my office has been told by thousands of Connecticut consumers, that these banks have done an incredibly poor job in dealing with the mortgage foreclosure mess they were instrumental in creating. As a result, millions of families have needlessly suffered, homeowners have lost billions of dollars in equity, and the real estate market continues to stagnate. Time is of the essence to fix this problem.

“Thus far, the national servicers have been unwilling to step up to the plate with the money necessary to address the full scope of the problems they themselves created. I believe they face substantial legal liability for their clearly illegal behavior should states be forced to sue. After being bailed out by American taxpayers, the banks owe those same taxpayers a real effort to partner with state and federal officials to clean up this mess.”

Attorney General Jepsen is a member of the National Association of Attorneys General multi-state task force seeking resolution of the mortgage foreclosure crisis

[Source: http://www.ct.gov/ag/site/default.asp]

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (3)

Sure They’re Technical Errors | Mortgage servicer industry error rate might be 10 times higher says U.S. Trustee

Sure They’re Technical Errors | Mortgage servicer industry error rate might be 10 times higher says U.S. Trustee


NYTimes’s Gretchen Morgenson

Mistakes happen, of course. And loan servicers like to contend that if errors occur, they are rare and honestly made. But after sifting through the data produced by this investigation, Mr. White disagreed that problems are rare. “In Senate testimony, an executive from Countrywide said its error rate was 1 percent,” Mr. White recalled. “The mortgage servicer industry error rate might be 10 times higher, based on the number of cases we are looking at.”

“There are continued flaws in the process, and they are not merely technical,” Mr. White continued. “Those flaws undermine the integrity of the bankruptcy system. Many homeowners have been harmed, including where the lender has come in and said ‘we want to lift the stay and go back into foreclosure proceedings,’ even though they lacked a sufficient basis to do it.”


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (2)

Independent reviews in mortgage servicer consent orders to stay sealed

Independent reviews in mortgage servicer consent orders to stay sealed


The investigation conducted by the OCC and the Fed included a review of just 100 foreclosure files.

Housing Wire-

When mortgage servicers signed consent orders with the Office of the Comptroller of the Currency and the Federal Reserve, these companies were required to hire outside firms to conduct “look back” evaluations of questionable foreclosure practices.

But these reviews will not be made public, according to an OCC spokesman.

William Black | ‘If you don’t look; you don’t find, Wherever you look; you will find’

~

FDIC Chair Shelia Bair concurs with O’Brien and Thigpen that damages to consumer’s “has yet to be quantified”

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

ADAM LEVITIN | The Servicing Fraud Settlement: the Real Game

ADAM LEVITIN | The Servicing Fraud Settlement: the Real Game


CreditSlips-

Warning: This is a long blog post. But if you follow mortgage servicing, I think you’ll find it worth reading. Despite lots and lots of media coverage of the servicing fraud settlement, nobody seems to understand the real story that’s going on. I think that this post will explain a lot.

Let’s start by recapping what we know.  Back in March we started hearing media reports of a proposed penalty for servicers in the $20-$30B range.  Then the American Banker published a 27-page term sheet from the AGs for servicing standards. Next, Huffington Post published a 7-page CFPB powerpoint presentation. Then came the draft C&D orders and then in April, the final C&D orders (which eliminated the ridiculous “single point of contact which need not be a single person” and replaced it with “single point of contact as hereinafter defined” and then failed—quite deliberately—to define it anywhere in the document).

Now there’s another round of activity and conflicting reporting. The American Banker reported that there was a new AG term sheet proposed and that principal reductions were off the table. That turns out to be incorrect, as Shahien Nasiripour reported in the Huffington Post. The new AG term sheet that the American Banker referenced deals only with servicing standards. The American Banker assumed that this mean that principal reductions were off the table because they weren’t referenced in the term sheet. In fact they are still very much in play. They’re just in a second, separate term sheet. So now there are two separate term sheets–one covering servicing standard and another covering monetary issues/principal reductions. (Recall that the original AG term sheet did not cover the monetary issues—that was clearly for a separate document.) We are also hearing news reports that the banks are offering to settle for $5B and won’t go above $10B.

So how do we make sense out of all of this?


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

Leading Mortgage Firms May Be Forced To Reduce Loan Balances For Distressed Homeowners

Leading Mortgage Firms May Be Forced To Reduce Loan Balances For Distressed Homeowners


For those of you that disagree, please read this post to understand why this makes perfect sense…

HuffPo-

The nation’s five largest mortgage firms may be forced to reduce loan balances for distressed homeowners as part of an agreement with state attorneys general and the Obama administration to settle claims of faulty mortgage practices, a top state official involved in the negotiations said Tuesday.


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

State attorneys general in D.C. for talks on fund to aid homeowners

State attorneys general in D.C. for talks on fund to aid homeowners


WaPO-

State attorneys general are descending on Washington again this week for negotiations with federal regulators and the nation’s largest mortgage servicers over the purpose of a multibillion-dollar fund aimed at helping troubled borrowers.

The idea behind the yet-to-be-created fund, the size of which remains in flux but could eclipse $20 billion, is to punish the servicers for their shoddy foreclosure practices, which came to light in the fall, and to put that money toward keeping struggling homeowners in their homes.


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

Regulatory Actions Related to Foreclosure Activities by Large Servicers and Practical Implications for Community Banks

Regulatory Actions Related to Foreclosure Activities by Large Servicers and Practical Implications for Community Banks


This Special Foreclosure Edition describes lessons learned from an interagency review of foreclosure practices at the 14 largest residential mortgage servicers and includes examples of effective mortgage servicing practices derived from these lessons.

.

Click Image Below

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (1)

John Walsh explains all – horizontally

John Walsh explains all – horizontally


National Mortgage News- By John Walsh

First of all, the problems we found were extensive. Our reviews found significant weaknesses in foreclosure governance and document preparation: improper affidavits were submitted and documents were notarized improperly. Servicers devoted insufficient financial, staffing and managerial resources to foreclosure processing. Third party providers of foreclosure-related services, including outside law firms, were not adequately supervised, and, in a limited number of cases, servicers failed to ensure proper endorsement of promissory notes or mortgage documents.


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

Banks Rush to Improve Foreclosure Practices,

Banks Rush to Improve Foreclosure Practices,


Tic Toc, Tick Toc,

Tic Toc…

Wall Street Journal-

“We’re not happy” with the time it takes to give borrowers an answer, said Christine Larsen, head of operations for retail financial services at J.P. Morgan, who is responsible for implementing the consent orders. The bank is trying to speed response times by setting new customer-communication deadlines.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

Why We Regulate — and Why John Walsh Needs to Resign

Why We Regulate — and Why John Walsh Needs to Resign


HuffPO-

Regulatory agencies exist to protect the public, not the corporations they regulate. The head of the Office of Comptroller of the Currency doesn’t seem to understand that. But that’s not why John Walsh needs to resign.

The OCC was created to stabilize the economy, make it easier to conduct trade, and protect people’s savings. It didn’t do that. In fact, it ignored the warnings raised by others. But that’s not why John Walsh needs to resign.


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

Letting the Banks Off the Hook

Letting the Banks Off the Hook


NY Times – Joe Nocera

Judging by last week’s performance, it sure looks as though the country’s top bank regulator is back to its old tricks.

Though, to be honest, calling the Office of the Comptroller of the Currency a “regulator” is almost laughable. The Environmental Protection Agency is a regulator. The O.C.C. is a coddler, a protector, an outright enabler of the institutions it oversees.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

Foreclosure Probe Talks Said to Yield Some Agreements With Banks

Foreclosure Probe Talks Said to Yield Some Agreements With Banks


BLOOMBERG

It may take at least two months to reach a final agreement, said the person, who declined to be identified because the talks are private. An accord remains out of reach because states want principal reductions for borrowers, which is more than banks agreed to in deals reached with U.S. regulators last week, said Allison Schoenthal, a lawyer at Hogan Lovells in New York.

“Principal reductions I don’t think are going to be agreed to by banks, and I don’t think the banks see a need for a penalty when, in their view, they haven’t done anything wrong,” said Schoenthal, who represents lenders and servicers and isn’t involved in the talks.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

Why The Attorneys General Should Not Settle W/Out Principal Reductions

Why The Attorneys General Should Not Settle W/Out Principal Reductions


Why they should be FORCED.

Take this home for example. It was originally sold for $289,000.

Prior to Final Judgment, property had two (2) assignments of mortgage for two entities same robo-signer for both via MERS.

At auction it was sold for a MAJOR discount at approx. 75% off. to Indymac via LPS Minnesota address in 2010. We know Indymac has been shut down way before this time.

Why couldn’t they work a deal like this when this person whom I personally know tried over and over to get a modification AT THE TIME?

They had a good job then and still have a good job today.

So why do they not want to work with the borrowers and reduce the principal to reflect today’s REAL and TRUE appraisal of the property?

Make sure you follow the transactions to understand what happened and why it makes no sense where this goes.

Now Here comes more funny business:

Still following?

  • Property was Quit Claimed/Transferred To Freddie Mac for $100.00 (prepared by David Stern) but consideration shows only $10.00.
  • Property then sold for $3900.00 more 13 days later $78,000
  • SAME day flipped for $150,000
  • Previous records are all gone [compare both images]

Don’t forget…

IS LPS’s Aptitude Solutions Software In Your County Courts & Land Records???

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (2)

Dylan Ratigan with Louise Story of NY Times “Can We Trust The Regulators?”

Dylan Ratigan with Louise Story of NY Times “Can We Trust The Regulators?”


Dylan Ratigan with special guest New York Times’ Louise Story, discussing the 600+ page report uncovering Goldman Sachs scheme to defraud investors. According to Bloomberg, The U.S. Justice Department and regulators will have to determine whether employees and executives of Goldman Sachs Group Inc. violated any laws when they traded securities tied to the housing market and testified to Congress about the transactions, Senator Carl Levin said.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

FED Foreclosure Fraud Settlements Make It Harder For AGs / Obama To Force Banks Into Principal Reductions

FED Foreclosure Fraud Settlements Make It Harder For AGs / Obama To Force Banks Into Principal Reductions


Prashant Gopal- Bloomberg

While the attorneys general proposed many similar terms last month, banking regulators didn’t include any requirements for lowering mortgage debt. That may hinder Iowa Attorney General Thomas J. Miller as he leads a group of state officials working with the administration to require lenders to evaluate loan cuts for some borrowers whose homes are worth less than their mortgages.

“I have always been pretty skeptical about the ability of principal reductions to get you much,” said Mark A. Calabria, director of financial-regulation studies at the Cato Institute, a public-policy research group in Washington. “I think we will look back and say this was the death knell.”


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

Regulators Take Light-Touch Approach Towards Banks For Homeowner Abuses

Regulators Take Light-Touch Approach Towards Banks For Homeowner Abuses


Question: Wonder what the regulators thought of when they watched 60 Minutes broadcast of LPS, DOCX and Servicer fraud on national tv with over 12 million viewers?

Just see what the number one popular post has been on this site since the airing of it or do a simple google search like 60 Minutes Docx or 60 Minutes LPS and you’ll see SFF is the first site that comes up. We’re no fools and believe me the entire globe has tuned in, including the regulators.

Shahien NasiripourHuffington Post

The nation’s 14 largest mortgage firms must compensate wronged homeowners after federal bank regulators determined the companies broke federal and state laws by improperly foreclosing on an incalculable number of distressed borrowers. The agencies announced such penalties Wednesday, the first in what is likely to be a series of enforcement actions targeting the country’s biggest banks and costing them billions.

Lenders like Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial systematically broke rules and took shortcuts when foreclosing on homeowners last year, the regulators said. Their three-month review launched after documents and videos of so-called robo-signers — people who signed thousands of foreclosure documents a day without reading them or knowing what was in them — surfaced, leading the biggest banks to halt home seizures.

Bank examiners found the firms employed practices that “failed to conform to state legal requirements.” In other words, they broke the law.


© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

Banks Must Pay Victims of Botched Foreclosures, Regulators Say (Why aren’t Courts ordering this?)

Banks Must Pay Victims of Botched Foreclosures, Regulators Say (Why aren’t Courts ordering this?)


BLOOMBERG

The 14 largest U.S. mortgage servicers must pay back homeowners for losses from foreclosures or loans that were mishandled in the wake of the housing collapse, according to a consent decree released today.

The agreement between the servicers and U.S. regulators imposes more substantial penalties than early reports of the deal indicated. It could also help the U.S. Justice Department determine the size and scope of any future fines for the flawed practices, regulators said.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (2)

OCC-BANKER-MERS-LPS FORECLOSURE FRAUD SETTLEMENT CONSENT ORDERS

OCC-BANKER-MERS-LPS FORECLOSURE FRAUD SETTLEMENT CONSENT ORDERS


Hear No Evil, See No Evil, Speak No Evil


The banks didn’t admit or deny regulators’ findings, according to the orders.

From Fed Press Release:

The Federal Reserve will closely monitor progress at the firms in addressing these matters and will take additional enforcement actions as needed.

In addition to the actions against the banking organizations, the Federal Reserve on Wednesday announced formal enforcement actions against Lender Processing Services, Inc. (LPS), a domestic provider of default-management services and other services related to foreclosures, and against MERSCORP, Inc. (MERS), which provides services related to tracking and registering residential mortgage ownership and servicing, acts as mortgagee of record on behalf of lenders and servicers, and initiates foreclosure actions. These actions address significant compliance failures and unsafe and unsound practices at LPS and its subsidiaries, and at MERS and its subsidiary. The action requires LPS to address deficient practices related primarily to the document execution services that LPS, through its subsidiaries DocX, LLC, and LPS Default Solutions, Inc., provided to servicers in connection with foreclosures. MERS is required to address significant weaknesses in, among other things, oversight, management supervision, and corporate governance. The LPS action is being taken jointly with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision, while the MERS action is being taken jointly with those agencies and the Federal Housing Finance Agency.

The Federal Reserve Board based its enforcement actions on the findings of the interagency reviews of the major mortgage servicers, LPS, and MERS. A summary of the findings from the reviews of the mortgage servicers is available in the Interagency Review of Foreclosure Policies and Practices, which is simultaneously being released by the Federal Reserve Board and the other agencies.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

ADAM LEVITIN | The Value of Rule of Law: 20 Basis Points

ADAM LEVITIN | The Value of Rule of Law: 20 Basis Points


Credit Slips.org

The rule of law is not even worth 20 basis points.  That’s the ultimate message in a recent paper by Charles Calomiris, Eric Higgins, and Joseph Mason evaluating the proposed AG mortgage servicing settlement. Calomiris et al. estimate that the settlement will raise mortgage costs at least 20bps, and they think that’s too much.

Recognize what they’re really saying:  that 20-45bps is too high a price to pay for the rule of law. They value the rule of law at less than 20bps. At present conversion rates, that’s about 30 shekels of silver.

The whole Calomiris et al. document is rather strange, as it’s hard to do any serious evaluation of the settlement without knowing the terms. We’ve seen a proposed servicing standards term sheet from the AGs and we’ve seen a CFPB analysis of disgorgement of wrongful profits and the costs of potential principal reductions, but it’s way premature to attempt any sort of real evaluation of a settlement. Unless, of course, the goal is not a serious evaluation of a settlement, but an attempt to forestall a settlement. Which is what this paper is.

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

The Economics of the Proposed Mortgage Servicer Settlement by Calomiris, Higgins and Mason

The Economics of the Proposed Mortgage Servicer Settlement by Calomiris, Higgins and Mason


Full Disclosure:

Funding for this research was provided in part by the financial services industry, including entities affected by the proposed settlement.

.

.

.

.

The Economics of the Proposed Mortgage Servicer Settlement

Charles W. Calomiris, Eric J. Higgins, and Joseph R. Mason1

[ipaper docId=52894340 access_key=key-bxx3cj688ghgdck8kt8 height=600 width=600 /]

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

NYT | New Rules for Mortgage Servicers Face Early Criticism

NYT | New Rules for Mortgage Servicers Face Early Criticism


Federal banking regulators have not officially imposed their new rules for the top mortgage servicers, but criticism is already being heard. A wide coalition of consumer and housing groups is denouncing the legal agreements, which are likely to be published within a few days. ?

[…]

The problem, said Alys Cohen of the National Consumer Law Center, is the agreements “do not in any way require the servicers to stop avoidable foreclosures, and that is what we need.”

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

GARY DUBIN LAW OFFICES FORECLOSURE DEFENSE HAWAII and CALIFORNIA
Advertise your business on StopForeclosureFraud.com

Archives