Center For Responsible Lending | FORECLOSURE FRAUD | by DinSFLA

Tag Archive | "center for responsible lending"

Foreclosure From Old Mortgages ‘Most Egregious Manifestation’ Of Broken Housing Market

Foreclosure From Old Mortgages ‘Most Egregious Manifestation’ Of Broken Housing Market


If the AG’s think they can settle the greatest theft in history, let them read this story…it’s not only people who are in default.

HuffPO-

In July 2009, Roy and Sheila Bowers refinanced the mortgage on their suburban ranch home in Topeka, Kansas. The couple wanted to take advantage of the low interest rates that were all the rage at the time.

Roy, a truck driver, and Sheila, a former hotel housekeeping supervisor, knew their new loan from Wells Fargo would enable them to save $198.86 a month – a nice chunk to help with gas and groceries.

But what the Bowers never imagined was that their old loan, the one Wells Fargo told them was paid off, would resurrect itself, trashing their credit report, scotching their son’s student loans and throwing the whole family into foreclosure. All, they say, even though they didn’t miss a single mortgage payment.

The Bowers aren’t alone…

[HUFFINGTONPOST]

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

The 11 Most Bizarre Foreclosure Stories Of 2011

The 11 Most Bizarre Foreclosure Stories Of 2011


HuffPO-

The housing collapse and subsequent foreclosure crisis has claimed the homes of millions of Americans. But that tragedy may only be matched by the absurdity of some of its tales.

As of February, lenders had foreclosed on 2.7 million homes out of the 42.2 million mortgages borrowers took out between 2004 and 2008, according to a recent report by the Center for Responsible Lending. Though many of the foreclosures have been routine, the sheer volume has resulted in some glaring errors and bizarre evictions.

One Florida couple was threatened with foreclosure for making a payment too early. In Texas, a man faced foreclosure on a home that was destroyed by Hurricane Ike years ago, while in Massachusetts, Bank of America threatened to seize a home if it didn’t receive an outstanding mortgage payment worth $0.00.

But there is some indication that these ridiculous stories are indicative of a systematic pattern of wrongdoing on the part of the lenders. Massachusetts Attorney General Martha Coakley announced a lawsuit, earlier this week, against five of the biggest mortgage lenders, JPMorgan Chase, Bank of America, Wells Fargo, Citbank and Ally Financial Inc., alleging the lenders used fraudulent paper work to foreclose on “hundreds if not thousands” of Massachusetts homes, BusinessWeek reports.

[HUFFINGTONPOST]

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

NC court weighs if foreclosure needs original docs

NC court weighs if foreclosure needs original docs


This part of the article doesn’t settle well for me:

The hearing in a state traditionally friendly to banks and home to U.S. industry leader Bank of America comes as paperwork problems have gummed up foreclosures nationwide.

Boston Herald-

RALEIGH, N.C. — North Carolina’s Supreme Court heard arguments today in a case that could decide whether mortgage lenders can foreclose on a home without producing original documents that prove they’re owed the money.

The hearing in a state traditionally friendly to banks and home to U.S. industry leader Bank of America comes as paperwork problems have gummed up foreclosures nationwide.

Those problems include missing documents validating a mortgage transaction and unqualified employees “robo-signing” affidavits improperly swearing to the accuracy of overdue mortgage debts. The problem of suspect documents could create legal trouble for homeowners and mortgage lenders for years.

[BOSTON HERALD]

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

DOBSON v. WELLS FARGO | AMICUS CURIAE BRIEF IN SUPPORT OF APPELLANT LINDA G. DOBSON

DOBSON v. WELLS FARGO | AMICUS CURIAE BRIEF IN SUPPORT OF APPELLANT LINDA G. DOBSON


SUPREME COURT OF NORTH CAROLINA

LINDA G. DOBSON,

Plaintiff-Appellant,

v.

SUBSTITUTE TRUSTEE SERVICES, 
INC., Substitute Trustee and WELLS
FARGO BANK MINNESOTA, N.A.
as Trustee for Equivantage Home Equity
Loan Trust, 1996-4, Note Holder,
EQUVANTAGE, INC., and AMERICA‘S
SERVICING COMPANY,

Defendants-Appellees.

****************************
PROPOSED BRIEF OF AMICI CURIAE NORTH CAROLINA JUSTICE CENTER, NORTH CAROLINA ADVOCATES FOR JUSTICE, CENTER FOR RESPONSIBLE LENDING, MAINE ATTORNEYS SAVING HOMES, THE FINANCIAL PROTECTION LAW CENTER, AARP, AND THE NATIONAL ASSOCIATION OF CONSUMER ADVOCATES IN SUPPORT OF PLAINTIFF-APPELLANT
*****************************

[ipaper docId=69227950 access_key=key-891zlyysqnu97uay2ag height=600 width=600 /]

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (0)

Maxine Waters Congresswoman Troubled by Reported Foreclosure Fraud Deal

Maxine Waters Congresswoman Troubled by Reported Foreclosure Fraud Deal


Press Releases

Contact: Sean Bartlett (202) 225-2201

Congresswoman Waters Troubled by Reported Foreclosure Fraud Deal

Reiterates Need for Servicing Standards, Raises Concerns about Settlement Figure & OCC Protecting Banks Over Borrowers

Washington, Feb 25 -

Congresswoman Maxine Waters (D-Calif.), a senior member of the Financial Services Committee, issued the following statement today after reports of a deal between the Obama Administration and mortgage servicers to settle systemic fraud issues in the servicing and foreclosure industry:

Reporting from yesterday and today indicates that federal regulators are close to reaching a settlement over what they describe as “shortcomings in foreclosure governance and document preparation processes,” or what I have plainly referred to as “foreclosure fraud.”  The settlement, as described by the Wall Street Journal, Huffington Post, and other media outlets, leaves me deeply concerned about whether homeowners will receive the due process and fair treatment they deserve.

Particularly, I am concerned about the $20 billion settlement figure, spread across 14 servicers, that has been noted in various reports.  Though this figure sounds like a large settlement to those unfamiliar with the scale of the foreclosure crisis, we must remember that over 3 million homes have been lost to foreclosure since 2006, and some analysts expect an additional 11 million foreclosure filings in the near future.  Moreover, the Center for Responsible Lending estimates that foreclosures between 2009 and 2012 will result in $1.86 trillion in lost wealth for families.

We must also contrast this $20 billion settlement figure, shared by 14 servicers, with the $8.6 billion settlement paid by Countrywide Finance Corp. in 2008 as a result of origination fraud.  I have every reason to believe that today’s improper servicing is likely just as pervasive as origination fraud a few years ago.

This settlement is too small, and will likely have one of two results:  either borrowers will receive insignificant principal reductions, or reductions will only be available to a small subset of troubled borrowers.

I am also concerned about the fact that this settlement, as reported, contains no discussion of mortgage servicing standards going forward.  Though I was pleased that the Administration briefly mentioned the need for servicing changes in their Fannie Mae and Freddie Mac reform proposal, we have yet to see the details of their plan for servicing reform.  As I have reiterated for years, meaningful servicing standards are absolutely necessary to protect the millions of borrowers vulnerable to foreclosure.  My bill from the last Congress, The Foreclosure Prevention and Sound Mortgage Servicing Act of 2009 (H.R. 3451), which I plan to reintroduce, contained borrower protections that I believe could have prevented many of the servicing failures we see today.  I urge regulators to insist on meaningful borrower protections that satisfy all of the servicing reforms described below:

• Provide that servicers have a duty to engage in reasonable loss mitigation activities, as outlined in H.R. 3451;
• Adopt servicer compensation structures that result in servicers having an interest as to whether the loan remains current, and separates simple transaction processing from actual loss mitigation activities;
• Require that a formula govern how second lien holders are required to modify second liens in the event of a first lien modification;
• Mandate that servicers establish a single-point-of-contact for each borrower seeking a loan modification, and provide that single-point-of-contact with actual decision making authority;
• Require that an independent master servicer provide oversight and resolve disputes regarding servicers’ actions;
• End the foreclosure “dual track,” which often results in borrowers being foreclosed upon by one division of a servicer while they are simultaneously attempting to negotiate a loan modification with another division of the servicer;
• Require servicers to foreclose in their own names;
• Change payment structures for law firms and other servicer contractors so that compensation is not tied to the speed at which these contractors foreclose; and
• Require servicers to disclose the complete chain of title as well as a full accounting of all fees (both upon request and in the Notice of Default), and the use of lost note affidavits in their foreclosures.

In addition to these borrower protections and servicing industry reforms, I continue to believe that it is essential for Congress to provide bankruptcy judges with the authority to alter mortgage debt on primary residences, an ability that judges already have on vacation homes.  I also believe that the Treasury Department should pursue monetary penalties for servicers’ failure to comply with Home Affordable Modification Program (HAMP) guidelines.  These monetary penalties could be redirected for any number of purposes, including increasing legal services funding so that homeowners can be adequately represented by counsel in foreclosure.  Finally, if the interagency report on foreclosure fraud does not already address this issue, I would urge regulators to conduct a robust investigation into whether parties involved in mortgage securitization may have failed to follow rules regarding the creation of Real Estate Mortgage Investment Conduits (REMICs), and are therefore in violation of tax rules.

More generally, I remain concerned that our regulators didn’t learn the lessons outlined in the Financial Crisis Inquiry Commission report, which starkly laid out how a failure to protect borrowers led to an explosion in exploitive subprime mortgage products.  All the evidence we have points to the fact that history is likely repeating itself.  In fact, in a November hearing of my Subcommittee, regulators made it clear that they learned of foreclosure fraud via newspaper reports, despite having teams of examiners located within the operations of major servicers.

For this reason, I was very skeptical from the outset that this investigation would yield substantive results, given that it was led by the Office of the Comptroller of the Currency (OCC).  As the subprime crisis has taught us, a regulator charged with protecting banks’ safety and soundness cannot also be charged with protecting the due process rights of borrowers.

Through yesterday and today’s reporting, we learned that the OCC’s position is that only a “small number” of borrowers were improperly foreclosed upon.  I am doubtful of this claim, given what I’ve learned about servicer-driven defaults in the years since this crisis began.  For instance, National Consumer Law Center attorney Diane Thompson has noted in testimony that around 50 percent of the borrowers she represents in foreclosure cases were subject to a servicer-driven default.  Academic work from experts like Kurt Eggert at Chapman University School of Law provides additional support for claims of servicer misbehavior.  And just recently, JPMorgan Chase admitted to wrongfully foreclosing on 14 active duty military personnel and overcharging another 4,000 military borrowers on their mortgages, in contravention of the Servicemembers Civil Relief Act.

To date, all we have are these anecdotal reports.  But through both Congressional hearings, and first-hand experience with servicers, I believe that there is substantial evidence indicating that improper fees, wrongful application of borrower payments, the use of unscrupulous foreclosure mills and other practices evidence the fact that improper foreclosures are widespread.

I eagerly await the full results of the interagency foreclosure fraud investigation.  In the meantime, I will continue to advocate for servicing reforms.  I believe that these fundamental changes to mortgage servicing are needed not only for borrowers, but to ensure a fully-functioning mortgage market that protects investors and encourages the return of private capital moving forward.

###

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in STOP FORECLOSURE FRAUDComments (3)


GARY DUBIN LAW OFFICES FORECLOSURE DEFENSE HAWAII and CALIFORNIA
Chip Parker, www.jaxlawcenter.com
Kenneth Eric Trent, www.ForeclosureDestroyer.com
Advertise your business on StopForeclosureFraud.com

Archives