Litton Loan Servicing, Fairbanks, Temple Inland Mortgage, OCWEN, Wells Fargo, Option One, Homeside, Countrywide, but ALL Predatory Lenders FRAUD! ripoff End result to the consumer - FORECLOSURE. Nationwide

It's been my experience that many people live in homes way beyond their means. These people should've considered buying a smaller house or a condo or should've rented an apartment instead.  

according to information available on the web.

Anyone can 'Google' this- GOLDMAN SACHS SELLS LITTON LOAN, and read the related articles on the web.

Don't forget to 'Google' this- VETERANS TODAY GOLDMAN SACHS EMAILS: FIRM HAD 'THE BIG SHORT' AS ECONOMY FELL, and read that article on the web.

Good luck to you!

***NATIONWIDE MORTGAGE / BANK ALERT: Make sure to stay at this site and type in all of the following and read the Ripoff Reports for important information if you have a mortgage or a bank account in the USA-

MERRILL LYNCH
GMAC
COUNTRYWIDE
PHH MORTGAGE
LITTON LOAN
GOLDMAN SACHS
LEHMAN
MORGAN STANLEY
HAMP
MORTGAGE MODIFICATION
MORTGAGE

BANK OF AMERICA
WELLS FARGO
CHASE
US BANK
CITIBANK
ONE WEST BANK
WACHOVIA
FIFTH THIRD
JP MORGAN
INDYMAC
BANK

About LUISA BENION I have nothing but good things to say about her. Thanks to Luisa my husband and I could purchase a house. We were moving from Philadelphia about 9 years ago when real state agents were just as unrealistic as their respective prices. We could not get financed and we answered her news paper ad for rent to own.

We could not believe how cheap the monthly rent was ($600.00) six hundred dollars, not to mention our present mortgage of only $545.00 per month.Our house is beautiful, is not brand new of course and you have to keep it in good shape when things break once in a while. For that price what can you actually purchase? I love Harrisburg and the city of Harrisburg with its inspectors are always there to make sure that the homeowners comply with codes.

Is no fair to blame your unwillingness to honor your mortgage to someone like LUISA BENION  who did nothing but good to her tenants. I am very aware of the Sherrieann Hawkings case who made no payments from day one, has sued an incredible amount of people in her entire life (including her own father) and got away with $50.000.00 plus a home all paid just because everybody that she was suing bank, appraiser, real state agent etc was afraid that a judge would favor her due to tendency of judges to favor buyers who were real victims of fraudulent mortgage system. Is not Hawkings case and again had nothing to do with LUISA BENION. This report with the negative remarks about LUISA BENION  should be removed, Hawkings got the money, the house and created the damage. What else  does she want?

I am just like a lot of folks. I lost my business after 16 years. Called the Hope Now Alliance for a assistance until I could secure employment. The report was filed & was never responded to. Acting on Hope's advice I tried to contact Litton....is there only 1 person that works for them in that department? Messages were left and never answered.

I contacted the Illinois Attorney Generals office to file a complaint (I suggest all readers do the same). They are very familiar with this organization, and are investigating them. I would also suggest contacting your congressman or senators.

Its astonishing that one institution can wreak havoc on ordinary people through their complete indifference towards families who want to save their homes. I'm not asking for a bailout....just a chance to get caught up in a manageable way. (my rate changes has changed the monthly payment from 1400 to 2800).

Anyone interested in starting a class action against them, feel free to respond. Lastly, good luck to all of you!

If you have a rec'd a foreclosure notice be sure to look at who is filing the foreclosure. If its the servicer or a trustee for the servicer the lawsuit may be fatally flawed. Wells Fargo just lost 26 lawsuits in Ohio where the judge held that in order to sue for foreclosure the Plaintiff must have legal standing and to have legal standing they have to have been injured by the Defendent. The only Plaintiff that can be injured is the person/company that owns the note, not the Servicer. The Servicer is bascially a bill collector and has no legal standing to file for foreclosure. Even if you have already had the foreclosure completed and lost your house you can file for a motion to have the Judgment Vacated. I do suggest you get a lawyer at this point. You can sue for damages of the loss of equity, costs of moving, pain, suffering ect. If you can find other that were also wrongly foreclosed upon you can show a pattern of bad acts and the Servicer/Trustee can then have a criminal complaint filed against them. Depending on which state you are in the servicer/trustee could have jail time in addition to a fine.

The list of mortgage irreputable grows longer each day. They are just as responsible and in most cases are serving as the mortgage lender because they are appointed by the mortgage lender to be the trustee of the mortgage loan. So the scenario goes as: The mortgage lender (your lienholder) if you are lucky enough to know who it is, appoints the mortgage servicer (who in most states requires no special licensing to do this) to act as trustee for your loan. You then have to speak with people from who knows where and these people have access to your personal and confidential information and if you do not meet their demands they act as the trustee they have been named to be and file in court to foreclose on your home. These people have no vested interest so they could care less if you are foreclosed on.

Most all these people are credit and collection companies or credit collectors. Scary thought? You then are "held hostage" to them and their demands regarding your mortgage in order to keep your home. Mine stated that if we did not sign the paper as they had it we would lose our home. Then one has to sign "under duress" in order to keep your home. However, since they have no regulations to follow most all of them change the ball game after a few months and that paper you signed ended up meaning nothing because you get nothing. Exactly two months after our "modification" was signed our payment went up $400.00/month because they failed to take into account the taxes so we ended up owing more per month than it is if we would have left it alone at 12% +%. They then go ahead and foreclose, destroy your credit and they do not care. They were just hired to collect mortgage monies.

However, since the "big boy" banks and mortgage companies are going belly up, the stockbrokers, and CEO's of the bankrupt companies are now going to work for where? ---- The same company they hired to be the trustee for their mortgages. I am not sure what someone else calls it but this looks and smells like plain and simple money laundering to me. The same people we just bailed out are now getting a "double dip" for their money. So the bailout has meant absolutely nothing except helped the same "big boys" collect their money two times over and our federal government is fronting money to them to do it. These same guys are taking the fed money and also the money collected from the credit and collection agency they hired to protect their interest. This is all a win-win situation for them. SOOOOO the CEO's of the banks and other mortgage lenders and the Merrill Lynch, Bear Stearns, etc., who went "belly-up" by using the system through you for pure and simple GREED are now back in the business of doing the same thing. Their names are the same, their purpose the 100% the same but the places they are different. Nothing has changed. The rich are just getting richer. THESE PEOPLE HAVE NO INTEREST IN WORKING WITH YOU TO KEEP YOUR HOME!!! You are still going to get "screwed". However, it is much better for them now because their hired credit and collection agencies will stop at nothing to collect their monies. As I previously stated "credit and collection people (in my opinion) are the "scum of the earth." They only lead you to believe they are helping you but the fine print, that only a dishonest business/person knows how to put in writing, gives them everything and you nothing. There will be just as many and more foreclosures as before the bailout and this time they are making a pretty good profit at it. All off you and me. We who work hard and abide by the laws and try to pay or bills. All these bailout people now have greed figured out in a way to still collect more money under the guise of a MORTGAGE SERVICER.

Now I think that any and all of us who are dealing with these people better wise up real fast. Your mortgage servicer is an appointed "trustee" by the lender. However, since very few of us know who our lender is and were never notified of this transfer from lender to trustee we then need to do what they are doing. Each state and the feds needs to review their banktuptcy laws and make it illegal for a mortgage servicer to be able to foreclose on a loan. Pass federal laws for it to be illegal for a credit and collection company to touch a secured mortgage loan. Start arresting and sentencing these people who are doing this scam, the same ones the feds just bailed out. Greed is one thing but it is now gone past that. It is now greed in excess. Why do you think you are seeing all the partying on TV from these people everyday. We can either take it and watch them get richer or take action and put this all to a stop.

Mortgage servicing fraud has to stop. Our federal government is allowing credit and collection agencies handle homes payments. These are the same people who sell yours and my personal, private and financial information to other agencies and companies. Think about that.

I too have been involved in AMERICA'S RIPOFF in this loan mortgage scandle. Ann, you ask why doesen't the government step in and do something. Well, I guarentee that "government" (ie: our congressmen etc.) have a huge stake in in the "business end" of this. It would kinda be like Goerge W. Bush saying he will get out of Iraq and lower gas prices. HE (and his family and close friends) DIRECTLY benifit from all that. Too mant high powered people have invested over the years in companies that loan money.

Since Ronald Regan deregulated business and no one is held accountable, real smart people have figured out language for contracts that is VERY one sided (their side). Until the vast majority of Americans stand up to "RICH" America and say "we are NOT gonna take this any more", they will always get away with everything.
The good thing is, This IS America, and we all have the oppurtunity to make a difference. This site is a step in that directiomn.

I too have been involved in AMERICA'S RIPOFF in this loan mortgage scandle. Ann, you ask why doesen't the government step in and do something. Well, I guarentee that "government" (ie: our congressmen etc.) have a huge stake in in the "business end" of this. It would kinda be like Goerge W. Bush saying he will get out of Iraq and lower gas prices. HE (and his family and close friends) DIRECTLY benifit from all that. Too mant high powered people have invested over the years in companies that loan money.

Since Ronald Regan deregulated business and no one is held accountable, real smart people have figured out language for contracts that is VERY one sided (their side). Until the vast majority of Americans stand up to "RICH" America and say "we are NOT gonna take this any more", they will always get away with everything.
The good thing is, This IS America, and we all have the oppurtunity to make a difference. This site is a step in that directiomn.

I too have been involved in AMERICA'S RIPOFF in this loan mortgage scandle. Ann, you ask why doesen't the government step in and do something. Well, I guarentee that "government" (ie: our congressmen etc.) have a huge stake in in the "business end" of this. It would kinda be like Goerge W. Bush saying he will get out of Iraq and lower gas prices. HE (and his family and close friends) DIRECTLY benifit from all that. Too mant high powered people have invested over the years in companies that loan money.

Since Ronald Regan deregulated business and no one is held accountable, real smart people have figured out language for contracts that is VERY one sided (their side). Until the vast majority of Americans stand up to "RICH" America and say "we are NOT gonna take this any more", they will always get away with everything.
The good thing is, This IS America, and we all have the oppurtunity to make a difference. This site is a step in that directiomn.

I too have been involved in AMERICA'S RIPOFF in this loan mortgage scandle. Ann, you ask why doesen't the government step in and do something. Well, I guarentee that "government" (ie: our congressmen etc.) have a huge stake in in the "business end" of this. It would kinda be like Goerge W. Bush saying he will get out of Iraq and lower gas prices. HE (and his family and close friends) DIRECTLY benifit from all that. Too mant high powered people have invested over the years in companies that loan money.

Since Ronald Regan deregulated business and no one is held accountable, real smart people have figured out language for contracts that is VERY one sided (their side). Until the vast majority of Americans stand up to "RICH" America and say "we are NOT gonna take this any more", they will always get away with everything.
The good thing is, This IS America, and we all have the oppurtunity to make a difference. This site is a step in that directiomn.

About Luisa Benion I have nothing but good things to say about her.
Thanks to Luisa my husband and I could purchase a house. We were moving from Philadelphia about 5 years ago when real estate agents were just as unrealistic as their respective prices.
We could not get financed and we answered her news paper ad for rent to own.

We could not believe how cheap the monthly rent was ($600.00) six hundred dollars, not to mention our present mortgage of only $545.00 Five forty five per month. Our house is beautiful, of course you have to keep it in good shape and things break once in a while (is not a brand new home) and for that price where are you going to purchase anything half decent?.
Harrisburg city is a way safer area than the Philly area and from my personal experience I can say that the city of Harrisburg has pretty decent inspectors that protect the public in most cases.

Once you become a home owner you are fully responsible for your house, trying to blame your incapability or not desire to keep your house in good shape, to either your real estate agent, mortgage broker or even the city inspectors is a big mistake.

In reference to the fraud case that occurred in Harrisburg Pennsylvania we knew this buyer named Sherrieann Hawkins who bought a house on Hunter street with full knowledge of its condition (she read and signed the city inspection report) and also got financial AID from the seller).
She went to the closing and paid only %85 (eighty five percent) of the market value PLUS she got $8000.00 (eight thousand dollars) from the seller. Sherrieann Hawkins committed fraud since a third party gave her the down payment and told the lender the funds were hers.
Sherrieann Hawkins moved in to the house and did not make one single payment.
Right after Hawkings made her complaints and after the closing date, the seller offered Hawkings to do repairs and she refused this help.
Now after three years of living for free (in a house that was supposed to be unfit for human inhabitation), she is trying to extort everybody that had to do in the transaction (even the party that gave her the down payment).
Sherrieann Hawkings claims that the house is not worth the forty thousand dollars that she ended up paying (hard to believe considering the amount) and wants to sue everybody: Appraiser, Mortgage broker, lender, insurance company, title company and real estate agents. She has hired different lawyers and all of them have had problems building a case for her.
We understand that predatory lending exists and indeed has occurred quite often during the last 5 years. We know also that there are buyers out there who have a real case against unscrupulous real estate agents and mortgage brokers. The Hawkings case on the other hand shows that buyers can attempt to be just as abusive as any predator in the industry. We as buyers should also take our share of the responsibility. If Hawkings signed and agreed on a mortgage payment she is supposed to honor the contract and for God sake is not like she was not given the opportunity to negotiate some sort of agreement after closing.

Robert and Susan

I am offering you a proposal to help you understand what Ocwen does to it's victims. I have a property in Illinois near St.Louis that I have been trying to sell. Ocwen holds the mortgage on this propoerty. My proposal is I will let you take over this property along with the loan servicing of Ocwen and you can see for yourself how you will be victimized by the dirty dealings of Ocwen and the so called customer service reps who know nothing and barely speak english. Just one hint when you call for something you will have to demand to speak with someone in the U.S. so you can understand them,but you will still get no where. Are you game?

Please dont ask anyone if they have any savings because the only savings the average american really has is the equity in thier home... you figure you are paying monthly to increase equity in your home and lessening the balance... do your actually think your $40,000 401k is going to cut it if something happens and you cant work to pay mortgage...What good is a life insurance policy if your dead anyway or have to have a leg missing to benefit from it while still alive?

After paying a 2-4k monthly mortgage and a car note plus some utility bills do you think anyone has enough money to save up in a savings account which you know you will owe interest on it at tax time? The worst thing anyone could have is a savings account... if you want to save some money take some cash and lock it in a safe...thats the best way to go!!! The less they know is the best way to go! The best way to get out of debt and get more tax breaks is to eventually quit your JOB! And start your own business so you could control your own money then just paying so many taxes!!!

Maybe your mortgage could be written off as a business expense for home office space... I thought by not having kids yet and less mouths to feed would help but then I get no tax breaks so what do I do start having kids and get married as a convenience? Maybe we need to stop fooling ourselves by going to those Donald Trump seminars trying to get real estate and finance tips from a so called rich guy who is NOTORIOUS for filing Bancruptcys!!! Why would I want advice from someone who gets rich off of that?

First of all the comment about a lender would rather keep you for a long period of time so they could make more money from you is somewhat not all true... they would rather take your home away, lets say you owe less now because you been paying for X amount of years... you try to buy your home back from the bank who took it but guess what happens??? You end up buying it back at market price... yeah I know of a real case where the homeowners had less than a year left and they would have owned thier home free and clear.. they lose it to foreclosure then end up buying the house back for more than 400k ...
so that justifies that lenders do make money from your home foreclosing...

I am assuming the person that made the comment they dont have no clue about the mortgage/real estate industry... I been in it for at least 6 years to see how things run... and ok so what if they lose because they cant sell a foreclosure... well no they dont because they do write offs when its time to file thier taxes am I right??? And still turn around and say the borrower of the mortgage still owes that money... so its all free and clear BS to me!

Another thing because these lending companies sell these homes to 3rd parties I am sure they profit about 6% or more from commission of selling these homes or willing to hire outside real estate agents to sell these homes for more than owed on it. The only one who is buying it for whats owed is the lender themselves then they turn around and resell it for market value... looks like someone needs to do thier homework or study about these factors...true to you or not it makes sense this way...Stop taking the enemies side its evil!

And these so called real estate or mortgage professionals making comments... do you even own property? Because I dont think its right for you to judge people and you dont even make mortgage payments yourself...

I noticed that there were comments about the consumer needing to be responsible and make payments... Well in that case how about me the victim who did make payments and pay what was agreed just to find a deed of sale posted on my front door? It is one thing to make payments late on mortgage... I am sure the lenders dont really care if you are late... that is just opportunity for them to slap the late fees to increase the financing charges and so forth... I got to the point where I did a repayment plan with countrywide. I agreed to pay them the months I was late plus extra in the condition I pay today... this would keep me from going into foreclosure status... So I went to western union paid the said amount plus wire fees... I'm thinking ok everything is under control and I will make another payment in a few weeks... Not even a month later, I find a lien of sale notice on my front door!!! Come to find out after calling countrywide they had applied the payment to my 2nd... so its like I paid 6 months worth of payments to my 2nd mortgage... so now they are first sorry about it, then they turn around and say it wasnt thier responsibility to make sure it goes into the right account... No one fixed this or even credited my first from the 2nd... they just let me overpay the 2nd loan and force me into a foreclosure... After all the BS fees and other lenders telling me not to pay until I get it refinanced or resolved, I had no choice but to scrape up about 11,000 plus just to stop the sale day before... thats $12.95 multiplied in denominations of every $500 until I paid them the 11k... Oh also once they file the sale date for auctioning your home... you could pay them anything you want, but if you dont pay that plus attorney and late fees... you could be short a buck and they will still auction off your home!!! Even after scraping all I could to pay them of course my payments went up about $500 more a month, no idea why but I couldnt afford the mortgage and this time my home finally foreclosed on me... with the market being so bad I guess I evened out and there was no equity like it would if I been able to sell or refinance my house a year ago if I didnt have this stress with countrywide... Then you get harassing phone calls either you owe them or they want to refinance you and you have all this equity call to refi... but your home is already foreclosed!!! Unfortunately my loan was sold to them. They are so bad they end up purchasing loans from investors...I guess they are connected with Wells Fargo since supposedly they were the trustee... now the bank supposedly owns the house but I'm still on the title... not even 3 days after the county auction they sent a real estate agent stalking my house while I was trying to move out in peace and also asking for keys... why would I give my keys to someone that cant even show me paperwork that they even represent the bank... the agent was pretty trashy he had no Idea I looked him up since I had access to pull title reports... These loan servicing companies even send inspectors without giving notice to check the home to see if its occuppied or not... Besides the fact the argument I have about these loan companies is that people do pay thier bills wether on time or with a delay... but what do you do when you get screwed when they say you never paid them and causing you to go homeless over thier own negligience? What happens when your fixed mortgage isnt fixed anymore and your payments go double and you were not explained what happens when your payments become adjustable? Is it anyone's fault equity is just bad??? This goes for people who never touched thier equity like me... I had $150k in equity, untouched then lossed because of a predetory lender... And for someone to be quick to say you need to pay your bills this and that and be responsible... just because you do pay your bills doesnt mean anything... you could have used a credit line to make a payment versus someone like me who likes to pay everything in cash versus going into more debt. Is it our fault that your credit is so good but you have such a high debt ratio? You think you have excellent credit but you probably owe so much money in credit cards, equity lines, car loans? People who say they are responsible are maybe just using the system to be able to pay when all they are doing is just getting into more debt. How could you say you are financially stable saying you own this and that and you own a house... You don't really own your house until its completely paid for! You just have partially interest in the equity but even all that could be lossed just because you were late on payments... you could just owe them 1,000 but just because you dont pay that they take everything! How is that right? It isn't its a system that eats you alive or you just have to know how to play the game like they play you with your mortgage. Its sad how people buy properties for $1.00 but the owner of the property loses at least 100k of years of payments and still owes on something they lossed?
Whatever you do don't ever file BK just let everything go to collection, dispute your derogatory credit and see it get wiped out.
If you are going to buy a home, be prepared to purchase other properties in the future just to use that equity in the other properties to pay off the balance of your residential home...
Own your next home free and clear... even though I lost my home... I think I will start all over again but this time I'm looking into buying land and building the home myself with my own personal money and not deal with these lenders!!!

Susan you stated in your post "if you cant afford it"....listen, most sub prime lenders trick the buyers into adjustable mtgs, balloon mtgs etc or mtgs with a high interest rate, then tell them to wait a few months or a year and then refinance. They fail to tell the buyers that they need equity to refinance, that most lenders require a two year pmt history to refinance or that their mtg company theyre financing the new home with has a waiting period before they can payoff/refi. The buyers are mislead. They think they can handle pmts until they can refinance and when the time comes theyre ultimately screwed. You & Robert need to 'get a room'. You both spew the same crap.

Att: Robert - Orange, California U.S.A.

Robert, your replies have been pretty much textbook. People just dont 'stop' paying their mortgage obligations for the helluvit. Some have a medical crisis, loss of employment, death of a spouse etc. Lose the judgement ok? 80% of foreclosures are due to some hardship. 15% are due to predatory lending, and the other 5% falls under 'other' criteria.

Now, lets talk about predatory lending. Theres all types. Let me just provide you with a different kind of predatory practice situation that occured here in Harrisburg Pa. This city has 2 areas of 'ghetto'; consisting of crime and dilapitated homes. There is the Uptown area and The Hill. These homes are row homes in neighborhoods that go for roughly 15-25k. These homes aren't even represented by realtors b/c they wont sell. Most mtg companies wont mtg these row homes or give mtg's less than 50k. A group of people were advertising in the local paper here selected homes (stop renting, bad credit no credit we can help you), some were being 'rehabbed'.

To make a long story short, they had an appraiser up the appraisals on these homes to say 55-72k. (Side bar - the appraisals used as comps were the inflated prices of homes these crooks sold) The mtg broker made sure the sale of the home came within the appraisal. These homes went for 50-59k to lenders like Ocwen bank, New Equity One and other out of state lenders. The city inspections failed on most of these homes.

Most of these homes were inspected as condemned. These lenders didnt require the inspections. (now what kind of lender wouldnt want to protect their interest by requiring a home pass inspection before approving a mtg?) You the buyer didnt get to see the inspection. These 'sellers' took care of everything so you wouldnt have to 'see' the details, you just showed up for the closing. You go to closing, sign and get the keys. You move in and the roof leaks, pipes leak, house wiring is arcing etc.

Now, in example, Ocwen bank on my block alone had 5 homes foreclose on them (all went thru these people) These buyers just didnt pay their mortgages Robert. They were essentially defrauded. They couldnt relist the home to sell b/c realtors would tell them they paid 20-30k to much for the home. These buyers ended up with property not worth the mtg and repairs in excess of what the house is worth.

Some who investigated the city inspections were ordered by the city to repair the home or be forced to leave due to condemnation on the (last) inspection. The buyers are now stuck. Was the state dept of banking there to help them? Was the state atty general? What about the state and city legislators who rally against predatory lending? These people and lenders are the ones responsible for the city's homestead demise, not the buyers. Why should they really?....everyone has their hands out and everything is there for the taking. The only losers in this is the buyer and in majority the buyer has no recourse, no help and no options but to walk away and let the home foreclose.

How do they/lenders make their money? Simple; The lender is insured. In most cases with Ocwen, these homes averaged 55-59k mtg. When they foreclosed, Ocwen had to put them up for sale. The house next door to me sold for 7500.00. Seven Thousand five hundred. It's a racket. These lenders are well aware of the condition of these homes. Most of these lenders also hide behind a loan serving company as to hide liability.

So, Robert - in all due respect, take your textbook answers to someone who is going to listen to that baloney. Theres alot of fraud happening in the mtg industry. So in essence to put the blame soley on the buyer is obtuse in all reasoning. Indeed according to their mtg contract theyre responsible financially, but that doesnt mean its right. Shyt is shyt no matter how you frame it Robert, and in this case the shyt is fraud.

If anyone has purchased a home in the Harrisburg Pa area, (Philly, Pittsburgh et al etc) and went thru a LUISA BENION (she is the main player in this fraud and has done this in just about every major city across the country)Please email me at (((ROR REDACTED EMAIL FOR SECURITY PURPOSES)))

CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.

The mortgage company take the mortgage note that I signed [the contract] and sells it to whom ever. Therefore selling their interest in the home, makes money and still wants me to pay them [mortgage company] or some other company that I did not sign a contract with.

iF I don't they foreclose on the house and sell it
and make more money.

Aren't these loans insured by a government agency so that the mortgage company would not lose money or at least reduce their risk?

The mortgage company take the mortgage note that I signed [the contract] and sells it to whom ever. Therefore selling their interest in the home, makes money and still wants me to pay them [mortgage company] or some other company that I did not sign a contract with.

iF I don't they foreclose on the house and sell it
and make more money.

Aren't these loans insured by a government agency so that the mortgage company would not lose money or at least reduce their risk?

The mortgage company take the mortgage note that I signed [the contract] and sells it to whom ever. Therefore selling their interest in the home, makes money and still wants me to pay them [mortgage company] or some other company that I did not sign a contract with.

iF I don't they foreclose on the house and sell it
and make more money.

Aren't these loans insured by a government agency so that the mortgage company would not lose money or at least reduce their risk?

The mortgage company take the mortgage note that I signed [the contract] and sells it to whom ever. Therefore selling their interest in the home, makes money and still wants me to pay them [mortgage company] or some other company that I did not sign a contract with.

iF I don't they foreclose on the house and sell it
and make more money.

Aren't these loans insured by a government agency so that the mortgage company would not lose money or at least reduce their risk?

How dare you! I can't understand why anyone would be as obtuse as to attempt to further belittle the victims who have already lost so much more than a lowlife like yourself will ever begin to understand.

While, I'd be the first to admit that there are a few people out there who have lost their homes due to their own fault or negligence, and who may have been justifiably foreclosed on, I know for a fact there's overwhelming evidence that proves that many more victims have been defrauded out of their homes and/or equity due to no fault of their own. This evidence indicates there are by far more corrupt servicing companies than there, that those that are not.

And to make this situation even worst most victims will most likely never receive any kind of meaningful restitution at all. Several victims have actually become so despondent by what has happened to them and their families that they have taken their own lives in desperation. In just one recent case, out of the 28,000 plus cases pending against Ocwen, a Galveston County jury awarded a Texas City woman $11.5 million after finding that West Palm Beach, Fla.-based Ocwen Federal Bank engaged in a scheme of unfair, unlawful and deceptive business practices in its servicing of her home equity loan.

At the trial, a former Ocwen employee testified to the company's unfair practices, including paying incentives to its loan collectors for moving properties with equity into foreclosure. Evidence also showed that the company engaged in predatory servicing by not informing borrowers of how to make their loans current and failing to give credit for payments when they were made.

The proof of these criminal activities is well documented. Also it's a widely accepted fact that this type of activity is just a tip of the iceberg went it comes to the criminal venues being used to defraud consumers out of their hard earned monies. There is a plethora of schemes that are employed by scammers to extort and/or defraud homeowners out of their equity and/or homes, ones which are used on a daily basis, yet our government, including the agencies that receive our tax monies specifically to protect us from this sort of crime have refused to take any kind of action whatsoever. They have totally ignored victims, and by doing so have continued to empower the criminal leaders in this extremely lucrative business.

They clearly continue to prosper at the peril of the working class victims that have become their unwitting slaves. Believe me, the absolute last thing these poor unfortunate victims need is for some totally uninformed, moronic, nimrod, mush-mouth to spout trash about how they were at fault for being ripped-off.

Robert is correct in what he says about mortgage servicing companies and foreclosures. I left my last job with the leader in mortages and mortgage servicing only because my sister was ill in another state.

Mortgage companies may not be the most ethical in everything they do, but then again, I have never run across a company anywhere that is upfront and honest in all their dealings.

Besides that, people make mistakes.

If you are not able to get a loan history back to the original date of your mortgage, that means that your mortgage has sold to another servicing company. It is as simple as that. Loans are bought and sold in "pools" of one million at a time. This includes paid to date loans as well as those in foreclosure, bankruptcy, loss mitigation, etc.

It is YOUR responsibility to read your loan documents. You are given a 3 day right of resencion by Federal Law to back out on that loan. The three days are Monday through Saturday (not including Federal Holidays).

States vary as to what their terms are on the foreclosure of a home. But long before that ever happens, collections are calling you several times and notices are sent to you.

People are afraid of collectors and ignore them. Do not ignore them. If you can't pay due to illness, being out of a job, etc., talk with your Loss Mitigation or Workout department. They will get all your income/outcome and devise a plan that will catch you up on your bills, however, if you default on this, you may well go into foreclosure.

Mortgage companies do not make ANY money on foreclosures. The fees have piled up including inspection fees, late fees, weathering of the home, attorneys fees, the insurance must be paid on the home and the taxes so a lien will not be placed on the home by the county for outstanding taxes. All of this is very expensive! Plus most of these homes have major damage from irresponsible homeowners. Pictures have to be taken (and these are kept on file). The mortgage company still has to make the interest payments to the LENDER. We are talking about thousands upon thousands of dollars for each home that goes into foreclosure. These are then know as REO (Real Estate Owned) properties that many individuals and companies buy and then sell for a profit (to them - not the mortgage company). Mortgage companies LOSE money when a house goes into foreclosure which is why they have a Loss Mitigation department to begin with.

As adults, you should know at the bare minimum that if you do not make your payments, you cannot live there. If you were renting, you would be thrown out. It takes longer for a foreclosure than it does if you don't pay your rent but if you don't pay your bills, you will not have a home. If you don't pay your car payment, you will not have a car.

Do not try to blame others for your irresponsibility. If you are that irresponsible, you should never buy a home.

Everyone goes through some down times in life, but there is help out there and the first place to turn to is your mortgage company, however, again, if you do not keep the workout agreement once made, you will go into a foreclosure status. Who is to blame for this? YOU ARE! Grow up!

If you do not know who your loan has been sold to so that you cannot get a loan history, that is your fault! Keep records! You keep your tax information, don't you? Why? Because the IRS may audit you. If you don't pay your taxes, there are consequences. If you don't pay your mortgage there are consequences.

Yes, there are bad people out there in every company and sometimes it is brought to the company's attention by lawsuits or the media. I can assure you that those people are terminated immediately.

The mortgage companies do not want your house. They want you to pay your bills just like any other company. And, just like any other company, they are in business to make money. So are you. Isn't that why you work?

People, quit being so ignorant. Before buying a home, read some books on the subject, get a mortage terms book, read the loan documents before signing so that any mistakes can be corrected at the time of signing. Title companies don't want you to waste time in their office but it is your right to read the documents and have them explain anything to you that you do not understand. Again, this is your responsibility.

Your home is your biggest investment. Why would you sign papers without reading them and understanding them thoroughly?

If you are one of those people that live from paycheck to paycheck, you are asking for your home to be taken away from you. Do not spend more than you can afford and always PAY YOURSELF FIRST!

As adults, you need to take responsibility for your own life, your own decisions and the consequences which comes from your action/inaction. Quit blaming others for your own ignorance and irresponsiblity.

I'm sure that for most of you that have gone into foreclosure, it is not the first time you have had problems with handling your money. And it most certainly will not be the last. Ask yourself "How much do I have in my savings, how much in my IRA, 401K?" "Do I have insurance for disability or life insurance in case something happens?" "If I lost my job today, do I have at least 6 months worth of money in savings to pay for all my bills and expenses?" "How many credit cards do I have?" "Do I pay them all off every month or just the minimum?"

If you don't have savings, insurance for a catastrophe or death, have more than 3 credit cards and are paying the mimimum balance every month, you are not responsible enough to be a homeowner!

I am a former borrower who was saddled with Fairbanks Capital as my servicer.

I had a 10 yr fixed rate mortgage where I paid the taxes and insurance.

My loan was traded around in the secondary market a few times before I ended up with Fairbanks.

I have to disagree with the tone and flavor of the some of the comments here about borrowers.

I have successfully paid off 4 mortgages. 3 of them without a hitch. What's so tough about repaying a mortgage? You write the check and toss it in the mail so that Fairbanks receives it on or before the 1st of the month. Then do it again until the loan is repaid.

What you industry people don't seem to understand is that you don't have to be a deadbeat that doesn't pay their bills on time for Fairbanks and the other predatory mortgage servicers to put your loan into default status.

I never made a late payment for the life of my loan and I sent $1,000.00 a month extra principal payment.

I paid off my 10 yr loan in 4 1/2 years.

Now, you'd think Fairbanks would have left me alone.

They didn't. I spent nearly two years mud wrestling with them to prevent them from putting my loan into default.

Keep in mind, I did nothing wrong and I have the proof to back up this statement.

I have all my canceled checks for the life of the loan. I have every statement Fairbanks sent me and I have a copy of every letter from them and to them. I have my contract. I kept a detailed phone log.

My loan was simple. Principal and interest and nothing else.

They tried every trick in the book to make it "appear" that I was late to get that first
fee assessment which is step one to the fast track for foreclosure.

They misapplied my payments nearly every single month.

I spent nearly a whole day per month writing letters and phone calls to keep my account accurate.

Like most people, I assumed they had nearly perfect incompetent clerical help. It took
a few months before I understood the scam and realized this was deliberate.

Don't take my word for it.

They had to be forced to sign a "Best Practices"
agreement. All it amounts to really is conduct you would expect to receive from any business.

Stop the lying, cheating, fabrication of reasons to cause default. Stop the equity stripping fees.

I would invite you to enter into your browser:
United States of America v Fairbanks Capital Corp.
These allegations were made by FTC-HUD and a class action suit Curry.

Read the complaint and the settlement documents and you will see what they have been up to and I'll bet you'll find it shocking and unbelievable. Yep. But that doesn't make it a lie.

These allegations were not made by deadbeat borrowers who do not pay their bills but arise from the investigation of HUD and the FTC.

HUD and the FTC made statements that the $40 million dollar settlement with Fairbanks and by the imposition of Best Practices, the other sub prime servicers could take this to mean, new industry requirements for the way they conduct business with the borrower.

Most of us eyeballing this case figure that Fairbanks got quite a deal. They had 750,000 borrowers. There was no meaninful restitution made and the deadbeats were sent packing with about 5 or 10 percent of their losses. No punishment there. Nobody went to jail or prison.
No justice there.

If the profit from the scam was around 400 million...why that is nearly half a billion dollar profit for them.

There is not outside compliance officer assigned to make sure that best practices are followed.

However, FTC and HUD were funded for their next investigation which is a common practice these days.

Those of you who do not think that the sub prime servicers have no motivation to foreclose, should rethink that one.

The servicers have quite the scam going on.

The servicer has no sense of duty to the borrower as the trust that holds the mortgage is their client not the borrower.

The borrower has no say in who collects their mortgage payment and no way to ask for a different servicer if they have are having problems. They're just stuck.

They foreclose quickly and even brag about it in their industry advertisements.

They receive a small amount of money for collecting your check and forwarding it to the trust.

Here's where they make their money. Late fees.
Legal fees they have not spent, bpo's drive bys,
knocks. At one time, $15,000.00 would be assessed routinely on a loan that they fabricated the default.

They get to keep everything they collect and then
foreclose oftentimes selling the house at auction to themselves way below fair market value.

The borrower never sees a dime no matter how much equity they had.

The day I realized they were trying to put a target on my back and all this incompetency was deliberate to get me into default was the day I went to war with them.

Yep, my loan was repaid. My house is mine.
The way they treated me and my loan is not something I will ever forget. I'll go away when the scam goes away.

Although, all the people trapped into dealing with these servicers are not sub prime the majority of them are.

If you take the time to look into the business practices of these companies you are reading about, you may just form another opinion if you could put yourself into a borrower's position.

I can sympathize with you in a way. I believed that old wives tale about nobody wants to foreclose, just make your payments and nothing bad is going to happen. That's what I thought too.

These sub prime mortgage servicers have given
your industry a black eye and there are lots of us who no longer believe the real estate industry or mortgage bankers are respectable business people anymore.

Wake up. There is fraud at every turn in the mortgage industry and it is not all about slimey borrowers.

Your industry needs a good house cleaning and those guilty of fraud can just learn those skills in prison. Oh please put me on a jury.

Just because you have a mortgage shouldn't mean
it is legal to steal from you. Sadly, that still appears to be the case.

Dee

I agree with you Ocwen if horrible. You're right on! It's ridicoulous for anyone to blame the victims (consumers) who are the ones suffering from there fraudulent behavior. The OTS did file a complaint against them.

A class action lawsuit is going on now against Ocwen for the very things you spoke about?

Ocwen is a bad business. I have been trying to get payoff for my new loan co. for a month. They have called and faxed and I have called and faxed Ocwen with no results. I have been pre approved for a loan with another bank since dec. 22 but Ocwen is holding off on producing the payooff. They always have a new excuse. don't blame the clients of Ocwen. Ocwen is a bad business with no ethics. Why would he woman from Texas win her suit. Even when someone is late, they still have rights. Ocwen needs to be shut down! If there are any new lawsuits against them please let me know.

Predatory lenders, many of them intentionally go after homeowner's that have a huge amount of equity already built up in their homes. Many of these homeowner's loans are based solely on collateral and equity in their homes and not based on their income. The banking industry has Litton to do their dirty work. THESE PREDATORS wait for a missed payment; death, sickness or any reason to swooped down and steal the homes that hardworking people have had for many years. Most of these homeowner's, especially the elderly, mortgage notes were already paid in full before they took out loan. Predatory lenders, search for these type of loans because they know, they will recoup not only all the payments already paid, plus, as in example below, a big chunk of money after the foreclosure sale. It is a racket! The lack of or in the case of Litton no enforcement action at all by lawmakers is the major reason for the continual fraudulent activity.

In my case, I had paid Litton $88,000 on a $95,000 equity loan. However, Litton tried to foreclose and snatch my property from me and put me out of my home in the depth of winter. My property had a large amount of equity already built up, also. Now I ask, why would a company treat a customer in this manner, when the customer has clearly been a good paying customer and the mortgage company's have all gotten there cut while transferring the loan four or five times, Why? Because they are greedy and would have made additional money on the auction sale. In these types of cases, mortgage companies definitely make money on foreclosures. In my case, they already had received $88,000 in payments, on a $95,000 loan. So technically all was owed on the loan was $7,000.

Con artist, Litton and let's not forget the attorney's that make a killing off of these fraudulent foreclosures and all other culprits involved would have taken my home from me just for interest money. These mortgage company's are not in the business of performing or servicing loans anymore! The main objective of these predators is to get as much money as they can and move on to the next victim, take their home and make more money. The foreclosure cycle continues in every state in this country!

Predatory lenders, many of them intentionally go after homeowner's that have a huge amount of equity already built up in their homes. Many of these homeowner's loans are based solely on collateral and equity in their homes and not based on their income. The banking industry has Litton to do their dirty work. THESE PREDATORS wait for a missed payment; death, sickness or any reason to swooped down and steal the homes that hardworking people have had for many years. Most of these homeowner's, especially the elderly, mortgage notes were already paid in full before they took out loan. Predatory lenders, search for these type of loans because they know, they will recoup not only all the payments already paid, plus, as in example below, a big chunk of money after the foreclosure sale. It is a racket! The lack of or in the case of Litton no enforcement action at all by lawmakers is the major reason for the continual fraudulent activity.

In my case, I had paid Litton $88,000 on a $95,000 equity loan. However, Litton tried to foreclose and snatch my property from me and put me out of my home in the depth of winter. My property had a large amount of equity already built up, also. Now I ask, why would a company treat a customer in this manner, when the customer has clearly been a good paying customer and the mortgage company's have all gotten there cut while transferring the loan four or five times, Why? Because they are greedy and would have made additional money on the auction sale. In these types of cases, mortgage companies definitely make money on foreclosures. In my case, they already had received $88,000 in payments, on a $95,000 loan. So technically all was owed on the loan was $7,000.

Con artist, Litton and let's not forget the attorney's that make a killing off of these fraudulent foreclosures and all other culprits involved would have taken my home from me just for interest money. These mortgage company's are not in the business of performing or servicing loans anymore! The main objective of these predators is to get as much money as they can and move on to the next victim, take their home and make more money. The foreclosure cycle continues in every state in this country!

Predatory lenders, many of them intentionally go after homeowner's that have a huge amount of equity already built up in their homes. Many of these homeowner's loans are based solely on collateral and equity in their homes and not based on their income. The banking industry has Litton to do their dirty work. THESE PREDATORS wait for a missed payment; death, sickness or any reason to swooped down and steal the homes that hardworking people have had for many years. Most of these homeowner's, especially the elderly, mortgage notes were already paid in full before they took out loan. Predatory lenders, search for these type of loans because they know, they will recoup not only all the payments already paid, plus, as in example below, a big chunk of money after the foreclosure sale. It is a racket! The lack of or in the case of Litton no enforcement action at all by lawmakers is the major reason for the continual fraudulent activity.

In my case, I had paid Litton $88,000 on a $95,000 equity loan. However, Litton tried to foreclose and snatch my property from me and put me out of my home in the depth of winter. My property had a large amount of equity already built up, also. Now I ask, why would a company treat a customer in this manner, when the customer has clearly been a good paying customer and the mortgage company's have all gotten there cut while transferring the loan four or five times, Why? Because they are greedy and would have made additional money on the auction sale. In these types of cases, mortgage companies definitely make money on foreclosures. In my case, they already had received $88,000 in payments, on a $95,000 loan. So technically all was owed on the loan was $7,000.

Con artist, Litton and let's not forget the attorney's that make a killing off of these fraudulent foreclosures and all other culprits involved would have taken my home from me just for interest money. These mortgage company's are not in the business of performing or servicing loans anymore! The main objective of these predators is to get as much money as they can and move on to the next victim, take their home and make more money. The foreclosure cycle continues in every state in this country!

Predatory lenders, many of them intentionally go after homeowner's that have a huge amount of equity already built up in their homes. Many of these homeowner's loans are based solely on collateral and equity in their homes and not based on their income. The banking industry has Litton to do their dirty work. THESE PREDATORS wait for a missed payment; death, sickness or any reason to swooped down and steal the homes that hardworking people have had for many years. Most of these homeowner's, especially the elderly, mortgage notes were already paid in full before they took out loan. Predatory lenders, search for these type of loans because they know, they will recoup not only all the payments already paid, plus, as in example below, a big chunk of money after the foreclosure sale. It is a racket! The lack of or in the case of Litton no enforcement action at all by lawmakers is the major reason for the continual fraudulent activity.

In my case, I had paid Litton $88,000 on a $95,000 equity loan. However, Litton tried to foreclose and snatch my property from me and put me out of my home in the depth of winter. My property had a large amount of equity already built up, also. Now I ask, why would a company treat a customer in this manner, when the customer has clearly been a good paying customer and the mortgage company's have all gotten there cut while transferring the loan four or five times, Why? Because they are greedy and would have made additional money on the auction sale. In these types of cases, mortgage companies definitely make money on foreclosures. In my case, they already had received $88,000 in payments, on a $95,000 loan. So technically all was owed on the loan was $7,000.

Con artist, Litton and let's not forget the attorney's that make a killing off of these fraudulent foreclosures and all other culprits involved would have taken my home from me just for interest money. These mortgage company's are not in the business of performing or servicing loans anymore! The main objective of these predators is to get as much money as they can and move on to the next victim, take their home and make more money. The foreclosure cycle continues in every state in this country!

And just for your own edification I will tell you what it is. Here we go again. It is the loan servicing companies that are making a killing by forcing people into foreclosure. By-the-way, It doesn't matter if the foreclosure is warranted or not, it is still highly profitable for them despite what you may think... I have seen it happen time and time again. But don't take my word for it. Talk to the people in the know, those who are in the trade they will assure you that it happens all the time. The fact is that the actual sell of a foreclosed home only represents a small portion of the profits associated with the overall foreclosure scam. After all, there's all those bogus fees to be charged: including high dollar legal attorney fees, processing fees, recording fees, appraisal fees, inspection fees, etc. Not to mention all the cash that is sucked in through the use of worthless, and often illegal forbearance agreements where the homeowner actually pays thousands of dollars up front, and by-the-way seldom gets credit for, just for the right of paying and even higher monthly payment simply because the service company failed to acknowledge the payment{s) that were been sent via registered mail and on time I might add. And of course, as is quite often the case; by some mysterious and unknown means the last and final forbearance payment is always delayed past its due date or outright lost. Therefore, the whole process of wealth transfer from those who cannot afford proper legal representation to those who can starts the process all over again, until at some point the homeowner runs out of reserve or simply calls it quits, and foreclosure finally takes place. At which point the home may often be sold to some long lost distant relative or a firm affiliated with the servicer. The ex-home owner gets dinged and charged for the remaining inflated balance. The sevicer usually sends a bogus statement to the IRS to obatin a tax right off and the home simply gets sold again at an inflated cost to the next victim, who will most likely be recycled through foreclosure mill once again until they are serviced into poverty. Now isn't that a pretty picture? THAT'S MY OPINION AND I'M STICKING WITH IT BESIDES, I'VE SEEN IT TOO d**n MANYS TIMES NOT TO.

Jon,

Please, tell me where I'm off on this one? There are far bigger profits to be made on keeping a mortgage over a 30-year timeframe than stealing it from somebody and selling it under market value.

On a $250,000 at 7%, a homeowner will pay a total of $348,769 in interest alone over the life of the loan! That makes the small amount of profit (which is usually NONE in most cases of borrowers who have tapped out their equity, or even come within 35% of doing so) supposedly made by foreclosing on people look like chump change.

Is there cases of companies making profits off of foreclosures on a case-by-case basis? Of course there are. But I can almost guarantee that if you took the overall profit-and-loss from a total portfolio of foreclosures, the loss far outweighs the profits. Why else would they try everything for 4-6 months to get people caught up? Why else do so many real estate investors drool over the thought of buying foreclosures?

Nobody is denying that there are shady actions being done in the industry, but foreclosures are far and away one of the worst examples of fraud in the industry that you could bring up.

If you want to talk about common sense, maybe you should put your conspiracy theories back in the closet.

Jason,

Either you have absolutely no common sense or you simply can't read! Which one is it? Maybe Robert will be nice and take you under his wing and teach you a thing or two. After all he may not be ready to accept the truth about some of the less savory mortgage servicing companies and how they make fortune in revolving foreclosures, but at least he has a clue.

Following up to what Robert has said here, anybody who thinks companies make money on foreclosures is crazy. Think about it... Most people are in the range of 75-80% "loan to value" (what they owe vs. what the house is worth) in their loans. When a company forecloses on a houses, they generally sell it as quickly as possibly to try and recoup their losses.

And selling quickly means what? Selling it far under market value. Why do you think people who buy real estate often times love foreclosures? Because companies generally sell those houses for 65% of what the property is actually worth. Which, based on the above figures, is at A LOSS.

Sure, generally people trash the place before they are kicked out, but it's still a huge profit to be made.

I don't mean to sound harsh here, but the fact is, you have to PAY YOUR BILLS. Don't be four months late then come crying on here about someone taking the collateral. If you loaned someone $400,000 and they didn't give you any payment for four months, wouldn't you come looking to recoup your losses?

Are there problems in the industry? Of course! But to say companies are foreclosing to profit from your loss is ludicrous.

And in response to Cheryl, who suggested that you go find a broker who can get you the best deal... As someone who has worked in this industry both for a big bad mortgage company and as a broker, I have to tell you, there is far more predatory lending going on in the broker side than the direct lending side.

Are you going to hear problems about these big companies? Of course! Just based on the volume of business they do, there's bound to be problems. But if you took an average, I would bet any amount of money that the percentage of predatory lending in the broker world vs. direct lending would be higher in the broker world. And, from a loan officer's side, the loan officer at Wells Fargo has FAR less at stake than the broker. The Wells rep is getting a salary. Will they get a nice bonus for closing your loan? Sure. But, they have something coming regardless.

The broker, in most cases, gets no salary. Their kids dinner depends on you taking their loan with three points (of which a large chunk, if not all, goes in their pocket) and a few points on the back end. So, the chances of them feeding you a line to get you to take their loan is generally higher, and it's been that way in my experience.

That being said, if you find a good and honest broker, they can get you better deals than you'll find at the big bad mortgage company. Just don't be surprised when your loan is sold for servicing to said companies. 85+% of loans done by brokers are generally transferred within a year.

There's a document in your loan papers that tells you what the chances are that your loan will be sold within a year, so you as a consumer are aware that this would happen. Plainly put, there are pros and cons to both sides of the industry.

The moral of the story, however, is to just pay your bills on time. You know what you're getting into when you sign. (Hopefully) Sure, bad things happen, and companies generally try and help you work through these things. But there are consequences, and you can't blame those on the company who lent you hundreds of thousands of dollars in good faith.

Please do not be mistaken, this is not a personal attack on the woman who mentioned boycoting from buying a home.

Quite frankly, I was appauled when I read this particular comment because if everyone refused to buy a home and there was no real estate market then the market would crash and things would be as bad if not worse than the Black Friday Market Crash in 1869. The real estate field effects so many people and is the one common denominator between all trades in the US. Think of it this way, without that market- every loan officer, processor, secretary, president, etc. of all mortgage companies would not have a job. Local banks, such as Bank of America, federal credit unions, and small chains of banks would go out of business becasue their biggest holding in the stock market is directly related to real estate. Without mortgage companies- real estate attornies, appraisers, real estate agents, home inspectors, insurance companies, and tax assessors would be non-existant. Employees at town and city hall would not have jobs because it deals with real estate, which no-one owns. Existing buildings would fall into decay and eventually be condemned because the property management companies of these houses, condos, and office buildings don't exist and are hired out by the companies and people who owned the propery. Contractors, electricans, plumbers, and all trade related works would be out of business because there is no new construction anywhere and they can't get a loan from a MORTGAGE COMPANY to build a new home or new building. People who owned homes before this economic crash would lose their jobs because their company is "consolidating" and can't keep up with the expenses of maintaining the building along with running a business. Doctors and attorneys and trades people would have to raise the cost of thier services to make a profit because the extra mateniance on these buildings will add up fast. People are having problems paying for emergency room visits now, what do you think is going to happen when medications and everything else doubles in price. Hundreds of thousands if not millions of people would lose their jobs and their well being beyond just the real estate field. The US would receed and become a third world country because it's economic well being has been destroyed.

You get the general gist of where this is going. Let me put in perspective for you.

Think of it this way, you're living in a small town with a rather large company in it. Now this company provides jobs, benefits, educational needs, etc. for its employees. Now this company has been around for a real long time and really helped the economy in the surrounding area a ton. Its expanded and helped the town become financially stable and more people are moving to into the area, lowering taxes and easing the expense the town is spending. The company is being so helpful, that it helps pay for repairs in local school systems and helped pay for the new hospital. This goes on for years and years and years until one day, the large company announces that "its just too expensive" to stay in your town and now must pull out of the area. The company release a press release that the company will be laying off all of the 2500 employees. That's aprox. 85% of the total population of your town that once was contributing to society and helping the economy that now are unemployed. Well unfortunatley, the unemployment fund does not have enough money in their reserves to support nearly half more or less the whole 2500 people. What happens...economic calapse. This is what New Milford, CT and several other towns are doing in the US as large companies like Kimberly Clark and Nestle, which are vital to their economy, are pulling out and causing economic distress and then collapse. It's the ripple effect.

No imagine that little town, New Milford, being the whole US. That's what will happen if you close down all the mortgage companies. It's already starting to happen...Look at Ameriquest-which owns various sub companies like Argent Mortgage and Olympus Mortgage- and Encore Credit Corp. They are laying off hundreds of people to prepare for the economic slump that is coming up. Over the next couple of years, hundreds of small mortgage companies, banks, and broker firms will shut down and it will take its toll on the suuronding fields. Watch the market and see what happens. The market will slow down and all will be effected. It happens ever 10 years, what's gonna stop it. How are you gonna pay rent if it double or triples and your job will pay you no more than minimum wage? How will you eat?

Well, not that I am in support of large mortgage companies, but some people are portraying them as the "big bad mortgage company" and yes there are a ton of bad corporate conglomerates that are bringing down the industry but they're not the only bad guys. Predatory lending has been a big issue for state and federal banking commissions since the 1980's(you know the 18-25% mortgages)and it has been their goal since then to protect the consumer. The banking commission of each state audits once a year, at least, every licensed mortgage company to make sure that they are in compliance with the banking laws for each particular state that they are licesed in and go through hundreds if not thousands of files one by one to make sure that the client has 1. not been ripped off 2. laws were not broken and 3. that the financial institution is doing what it can to protect the consumer from foreclosure. Companies like Conseco/Greentree (who have been charged with predatory lending and shut down and sued) are no longer in existance because of the every changing laws in the banking field. People don't realize how much is governed by the banking commission- banks, mortgage companies, bill collectors, credit unions, pretty much any kind of financial institution where large somes of money are involved.

Banking laws have become so strict in certain states i.e. Mass, that you have to jump through firey hoops to get the loan done. In most states, there is a ceiling to how much can be charged between the attorney, the bank and the mortgage company. In some states, prepayment penaties are prohibited and you must show a benefit to borrower or the bank won't approve the loan. You must show that this loan isn't going to put this person into foreclosure and that if a accident happens or they lose their job, that they will be able to make at least two months worth of mortgage payments. Most brokers will not do mortgages for people who can't afford it and most foreclosure bailouts come with a year worth of payments cash out to the client, just in case.

Yes, there are bad mortgage companies out there. The large companies, Countrywide, Ameriquest, Wells Fargo, among some others, are the largest foreclosing companies in the US. Why, because people go with the name brand stuff. They have a big name and big name is always better-or so people think. The loan officers who work at these companies don't really care about the consumer, they're just there to get loans and make sure that they don't foreclose within the first year of that loan. Other than that a client with a 800 score and tons of money is the same as a client with a 535, three children, struggling to get by client. Your first mistake when you get you mortgage is going to a big company with limited options. Its like going to a Starbucks and trying to get a chocolate milkshake, your not going to get a full variety like going to a broker who can shop you around with little or no consequence or cost to you. They're gonna anaylize the situation which is best for you and a good broker-which there are a lot of- will work with you for the best solution.

Going directly to the bank isn't much better- Home Equity loans take weeks to approve through a bank and the interest rate can jump sky high if and when the market moves. The 30 year fixed is only gonna help you if you plan on never refinancing again, never gonna take equity out of your home, and you're gonna live through the 30 year fixed i.e. 80 yr old grandparents that refinanced to get the rate down. Chances are a Adjustable Rate Mortgage will save you more money and a good broker will refinance you for cheap or free if your a returning client. As for charges from the mortgage company- the fees charged on a refinance are tax deductible and should be written off. On a purchase, there's seller concession-meaning the seller will pay closing costs. This is why you should use a broker, they tell you all the good stuff that the bank will not.

In reference to the fees charged during the mortgage, I really can't help you there...I can only warn you to stay away from the larger companies because the bigger the name, the bigger the fees. You really don't start paying down the principal until your halfway through the loan anyway. The bank has to make they're money someway...that's how they do it.

As for these cheap and easy companies like Ditech.com and Lending Tree...keep in mind that they have to make their money too. You may not see the money come out but its there. If they don't take the money up front, then their money is coming out of the rate. Low closing costs high rate is usually everyones gimmick or the other way around. Yeah you're getting a 4.375 but your paying 20k in closing costs. There's an even balance. Someway they're gonna get you.

In reference to foreclosure, yeah mortgage companies and banks are all the bad guys...NOT!!! Most people put themselves in that situation and they like to play off the "I'm the Victim" gig to get sympathy when they lost their house.

Now don't get me wrong, there are a few out of the population who lost or are losing their house because of legitimate reasons...and I do sympathize. I recently had a lady who developed two kinds of cancer and her hubby used all the money for the expensive medical treatment..which is why they couldn't pay their mortgage. They refinanced and got out of that situation with money to spare and God is looking upon her cause she's beaten both cancers and just had a very merry christmas with her devoted hubby and three kids.

The elderly who can't aford to pay their bills and mortgage go into reverse mortgages-the loan is for the life of the client and the loan is non assumable by anybody else. Basically, the person, if any family, who has right to the house can refinance/buy the property and get rid of the reverse mortgage and not worry about that company taking the house on account of the clients death.

What I don't have sympathy for are gold diggers and con artists who claim they are the victims because of gambling debts and various other small loans that they took out without thinking to buy expensive unneed things, like fur coats, new cars, big screen tvs, etc. I also don't have any sympathy for people who didn't pay their mortgage for months and months and months while they held a job or got a new one from a layoff and don't have a dime to show because they didn't think the bank would take their house or that they'll be able to sue and keep they're home. Keep in mind, big banks don't negotiate unless it benefits them. If your bank who is foreclosing on you offers a new deal, be very wary because they might just end up putting you back into the same situation again months or years down the line. This is what a broker warns you when the bank finds out that your trying to refinance and save your home. Bank people work for the bank, brokers work for you. I'm a broker and I have a mortgage on a 400k house, but I can't and would not do my own loan. I also am not running to countrywide to get me a loan because I've got a better deal through a smaller company who will not sell off my loan. I don't have to worry about my payment going to the right company every month because of the loan being sold.

Next point, if mortgage companies are so bad then why are there brokers out there that try to help people out of foreclosure, like myself. I know what my clients can take and I know when they're going to runnoff with the money and come back in a year and blame me. Their attorneys hold the money and make the payments for them so in a year they can go to any company anywhere and get a new loan. Yeah the interest rate is high, but when you have bad credit who's gonna give you a 6%. No bank will lend to a consumer who has below a 500 credit score, I help those people too. Am I the bad guy for saving thier house. I'll let them decide that in the comfort of their own homes. Many people do this, its just a matter of looking.

As for those people who slowly over time ran themselves into a hole and can't get out...yes I feel your pain, trust me I've got more in credit card debt then I'ld like to think about...but I would rather not make a credit card payment or make some arangement with the local hospital about that emergency room bill than not make a mortgage payment. Bill collectors can be settled for less, hospitals have payment plans and work with patients to get the treatment they need, mortgage companies will just take your house. Think about it, you won't be worring about making that Chase card payment or AMEX payment if you live on the street.

For these people that are drowning in debt, there is really not much you can do. This is gonna come out rude and obnoxious but you put yourselves there. Now the only exception to this is student loans...go refinance your student loans...it save you money on the interest and its cheap. If you've got more store cards than credit cards, you definatley put yourself into this situation. Nobody needs a store card, you can only use it at that one store and it won't buy your groceries or pay your car loan. Get rid of it. You only need two or three credit cards and you don't need balances over 5k. It amazes me that some friends of mine have 10k credit limits on certain cards and spent 8k. The more you have, the more you spend...its bad for your credit. Creditors don't want to see that you're living on your credit cards, the just want to see that your paying them off on time. More than three credit cards= bad news. It brings your score down and makes mortgage companies start to wonder if you make as much as you say you make.

If you find yourself in this situation, you have a couple of options. Get another job, yes americans are lazy, but you know what it takes a average of 1.75 jobs for the average american to stay ahead of the debt. Get another job to ease up cash flow on the credit cards and pay off debt. Don't think that because you have a second job that thats more money to buy other stuff. My mother worked two full time jobs and one part time to support my sister and I through school and pay bills when my father died...and this was only five or six years ago. My father left a ton of debt and a house that needed serious repair. So don't act like this can't happen to you. Social security didn't help much because what was left was not enough to pay for basic living needs. Don't depend on what you don't have. If you've already taken that route, then make the lazy members of your family, those who aren't working get a job or get a second part time to help out. If you are disabled or elderly and am limited to what you can do, try for government assistance programs, there are plenty out there. Reverse mortgages help the elderly get rid of the mortgage payment that's bothering them and focus on their health and family. The only other option is Chapter 13 and Chapter 7 Bankruptcy. It is there to help the consumer not lose their house and get back on the right track.

Addressing the mortgage history before 1998, okay rule of thumb is after seven years, it gets thrown out. Its the same with banks, credit card companies, car loans, etc. Would you really want on your credit report a account from 1967 that you were late on once...NO! Credit reports would be 25+ pages long and banks would hold onto your closed accounts and bank books forever. It just doesn't make sense. So why would any mortgage company keep records of what you paid before 1987 years ago?

As for all companies being the same...watch the market. See what happens in the next couple of years. You complain that there are so many companies that are all the same, in the months and years to come those bad companies will be put out of business by the slowing market and then recession. It happens in cycles every ten years or so. A ton of companies that don't have roots will be put out of business and those bad companies will suffer. The good will close with the bad. A ton of "hard working americans" will be out of business and the economy will suffer. It has already started.

Blaiming this on the Feds isn't going to help you. The problems that your trying to fix need to go to your state congressman or women to get reform from the banking commission. Only there you will get results. Keep in mind things take time.

cvmoxford@yahoo.com

Jon, Unfortunately people don't get to choose who services their loan these days and some of these companies are doing fraudulent things. I was just saying that these companies are not out to foreclose on houses. Are they adding fees that make them money? Most definitely! But for me to sit here and read about people thinking they are getting ripped off because they haven't made a mortgage payment in 4 months and now the bank wants the collateral back, is crazy! Those are the ones I was talking about.


By no means was I defending these companies and to be honest I am tired of dealing with them as well. They have become so bad that my work is doubled just trying to get a simple task done with them because they are so bad now.

I also agree that the government does need to get more involved with this and watch these companies a little closer. But since these companies seem to have very deep pockets that won't happen for a while.

Robert,

Since you work in the home loan industry you should know that when it comes to mortgage servicing, most people do not have a choice in who services their mortgage. Of course the loan contract can be written to prohibit the loan servicing from being transferred but that may price many people right out of the housing market. I may be wrong but I don't think anyone here is saying that all mortgage companies are thieves and that they all want to steal their homes. But there are a few, mostly the service companies and it appears that no one, especially the government is doing anything to stop them.

I admit that I too cringe every time I hear someone say: I was X months late on my payments and they foreclosed. In my opinion, under most conditions there is really nothing to gripe about from a legal stand point anyway, as long as the mortgage servicer didn't somehow contribute to the customer being late. Like stacking checks, purposely giving wrong addresses, etc. which, believe it or not, some do. But if the customer is at fault, at most, it be a moral issue but certainly not legal one and therefore should not be posted on this or any site. Like I have said before, the problem is that no one has been enforcing these contracts on behalf of the borrower against the service companies until just the last couple of months. And this is costing everyone money, especially us tax payers and PMI insurance companies, etc.

I never once stated that OCWEN or any other of the companies mentioned don't break the law. I addressed the foreclosure question for everyone that thinks they want to take your home. It is well known that a lot of these companies mentioned inflated appraisals and do other shady things to get loans done and I will be the first to say so.

I would rather these companies go away! Even though they bring me a lot of business they also put a black eye on my industry that has done far more damage than good.

People need to take some responsibility for their actions PERIOD! Is it the companies fault when a person does not read the contract they are signing? They have specific laws in place to protect them and they still refuse to read it in the given time period and then get on here and whine!

People if you see something that looks fishy then walk away and go with another company, it is as easy as that! It will save you many headaches in the future.

Robert,

Please read the information I have provide from the FBI website. Ocwen may not make money on forclosing on properties I think that is the way you put it however they do make money on flipping properties. Inflating appraisals!!!!



Congressional Testimony

Statement of
Chris Swecker
Assistant Director
Criminal Investigative Division
Federal Bureau of Investigation
Before the
House Financial Services
Subcommittee on Housing and Community Opportunity
October 7, 2004

Introductory Statement:

Good morning Mr. Chairman and Members of the subcommittee. I want to thank you for the opportunity to testify before you today about the FBI's efforts in combating mortgage fraud. Although there is no specific statute that defines mortgage fraud, each mortgage fraud scheme contains some type of "material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan." The Mortgage Bankers Association (MBA) projects $2.5 trillion in mortgage loans will be made this year. The FBI compiles data on mortgage fraud through Suspicious Activity Reports (SARs) filed by financial institutions, and Department of Housing and Urban Development Office of Inspector General (HUD-OIG) reports. The FBI also receives complaints from the industry at large.

A significant portion of the mortgage industry is void of any mandatory fraud reporting. In addition, mortgage fraud in the secondary market is often under reported. Therefore, the true level of mortgage fraud is largely unknown. The mortgage industry itself does not provide estimates on total industry fraud. The industry provides incomplete or inconsistent fraud data. Based on various industry reports and FBI analysis, mortgage fraud is pervasive and growing.

The FBI investigates mortgage fraud in two distinct areas: Fraud for Housing and Fraud for Profit. Fraud for Profit is sometimes referred to as "Industry Insider Fraud" and the motive is to remove equity, falsely inflate the value of the property or issue loans based on fictitious property(ies). Based upon existing investigations and mortgage fraud reporting, 80% of all reported fraud losses involve collaboration or collusion by industry insiders. These schemes involve industry insiders to override lender controls. Fraud for Housing represents illegal actions perpetrated solely by the borrower. The simple motive behind this fraud is to acquire and maintain ownership of a house under false pretenses. This type of fraud is typified by a borrower who makes misrepresentations regarding his income or employment history to qualify for a loan.

For the past 18 months, the FBI has been evaluating the effectiveness of its national mortgage fraud program. In June 2004, I authorized the consolidation of the mortgage fraud program into the Financial Crimes Section of the FBI's Criminal Investigative Division. Previously, mortgage fraud that impacted government programs (i.e.HUD) was managed by the Integrity in Government Section. Mortgage fraud affecting financial institutions was managed by the Financial Crimes Section. This consolidation provides the FBI a more effective and efficient management over mortgage fraud investigations.

Second, I encouraged an overall strategy to addresses mortgage fraud on a proactive basis utilizing partnerships with federal agencies, state and local law enforcement, regulatory bodies, and private industry. Third, I assured adequate personnel resources were dedicated to emerging mortgage fraud problems in regions of the country encountering the greatest levels of fraud. And finally, the FBI adopted an overall strategy to focus on insiders harming the industry in order to disrupt and dismantle entire criminal enterprises.

The FBI defines industry insiders as appraisers, accountants, attorneys, real estate brokers, mortgage underwriters and processors, settlement/title company employees, mortgage brokers, loan originators and other mortgage professionals engaged in the mortgage industry. Through a mandatory reporting mechanism, industry insiders would be the front line in preventing mortgage fraud. Zero tolerance within the industry combined with a mandatory system of reporting fraudulent activities to the FBI and HUD will be a major step in addressing mortgage fraud.

The defrauding of mortgage lenders should not be compared to predatory lending practices which primarily affect borrowers. Predatory lending typically affects senior citizens, lower income and challenged credit borrowers. Predatory lending forces borrowers to pay exorbitant loan origination/settlement fees, sub prime or higher interest rates, and in some cases, unreasonable servicing fees. These practices often result in the borrower defaulting on his mortgage payment and undergoing foreclosure or forced refinancing. As one example, in 2002 and 2003, FBI, HUD-OIG and state and local agencies from Utah pursued allegations that Fairbanks Capital Corporation was engaged in predatory servicing practices. This particular case culminated in civil and other administrative actions taken by the Department of Justice.

Market Impact:

The potential impact of mortgage fraud on financial institutions and the stock market is clear. If fraudulent practices become systemic within the mortgage industry and mortgage fraud is allowed to become unrestrained, it will ultimately place financial institutions at risk and have adverse effects on the stock market. Investors may lose faith and require higher returns from mortgage backed securities. This may result in higher interest rates and fees paid by borrowers and limit the amount of investment funds available for mortgage loans.

Often times, mortgage loans are sold in secondary markets or are used by financial institutions as collateral for other investments. Repurchase agreements have been utilized by investors for protection against mortgage fraud. When loans sold in the secondary market default and have fraudulent or material misrepresentation, loans are repurchased by the lending financial institution based on a "repurchase agreement." As a result, these loans become a non performing asset. In extreme fraud cases, the mortgage backed security is worthless. Mortgage fraud losses adversely affect loan loss reserves, profits, liquidity levels and capitalization ratios, ultimately affecting the soundness of the financial institution.

Proactive Approach to Mortgage Fraud:

Over the past five years, the FBI has implemented new and innovative methods to detect and combat mortgage fraud. One of these proactive approaches was the development of a property flipping analytical computer application, first developed by the Washington Field Office, to effectively identify property flipping in the Baltimore and Washington areas. The original concept has evolved into a national FBI initiative which employs statistical correlations and other advanced computer technology to search for companies and persons with patterns of property flipping. As potential targets are analyzed and flagged, the information is provided to the respective FBI field office for further investigation. Property flipping is best described as purchasing properties and artificially inflating their value through false appraisals.The artificially valued properties are then repurchased several times for a higher price by associates of the flipper.After three or four sham sales, the properties are foreclosed on by victim lenders. Often flipped properties are ultimately repurchased for 50-100% of their original value.

Other methods employed by the FBI include sophisticated investigative techniques, such as undercover operations (UCO's) and Title III wire taps. These investigative measures often result in collecting valuable evidence and provide an opportunity to apprehend criminals in the commission of their crimes and reduce losses to financial institutions. These proactive methods do not preclude historical investigations; however, they provide the FBI with additional tools to conduct large scale investigations through operational efficiencies.

In August 2002, the Cleveland FBI Office culminated a two-year UCO targeting industry insiders. The UCO focused on mortgages settled by American Home Loans employees and corrupt professionals including appraisers, accountants, mortgage brokers and loan originators. Representatives of American Home Loans were able to orchestrate the scheme by fabricating loan applications and the supporting documentation (W-2s, tax returns, employment/income and bank verifications). As a result, industry insiders were able to circumvent the safeguards of numerous finance companies. The pervasive loan fraud caused property values to be artificially inflated in the greater Cleveland area. Through this UCO, more than 150 targets were identified, 23 search warrants were executed, and 94 targets were indicted, including two accountants, four title company employees, five appraisers, eight underwriters and forty loan brokers.

On September 16, 2004 an undercover mortgage fraud investigation conducted by the FBI Charlotte Division resulted in the identification of more than 35 industry insiders, and more than 380 fraudulent loans exceeding $70 million. In November 2002, the investigation was initiated due to numerous complaints by the North Carolina State Bureau of Investigation and lenders regarding high loan default rates within a short period of time. The FBI identified a pattern of pervasive mortgage fraud in the greater Charlotte area. The investigators determined the most efficient and effective approach to this investigation was an UCO. This not only resulted in the identification of a large number of corrupt industry insiders, but also prevented further fraudulent mortgages. Seven plea agreements have been signed to date; the investigation is ongoing.

Fraud Trends:

Although there are many mortgage fraud schemes, the FBI is focusing its efforts on those perpetrated by industry insiders. The FBI is engaged with the mortgage industry in identifying fraud trends and educating the public. Some of the current rising mortgage fraud trends include: equity skimming, property flipping and mortgage identity related theft.

Equity skimming is a tried and true method of committing mortgage fraud and criminals continue to devise new schemes. Today's common equity skimming schemes involve the use of corporate shell companies, corporate identity theft and the use or threat of bankruptcy/foreclosure to dupe homeowners and investors. Property flipping is nothing new; however, once again law enforcement is faced with an educated criminal element that is using identity theft, straw borrowers and shell companies, along with industry insiders to conceal their methods and override lender controls. It should also be noted that identity theft in its many forms is a growing problem and is manifested in many ways, including mortgage documents. The mortgage industry has indicated that personal, corporate and professional identity theft in the mortgage industry is on the rise. Computer technology advances and the use of online sources have also assisted the criminal in committing mortgage fraud. However, the FBI and its law enforcement and industry partners are working together to identify trends and develop techniques to thwart illegal activities in this arena.

Law Enforcement Partnerships:

In 1999, the FBI joined forces with HUD-OIG to establish the Housing Fraud Initiative (HFI)Task Force. As a result, numerous successful joint investigations were conducted in New York, Baltimore, Washington D.C., Chicago, Los Angeles, and Dallas. The FBI is actively investigating mortgage fraud in those cities and continues to promote joint investigations with HUD-OIG and other federal, state and local law enforcement and regulatory agencies wherever mortgage fraud is prevalent.
With regard to the HFI initiative the following serve as examples of successful joint investigations:

A two-year joint investigation by the FBI , the IRS, and HUD-OIG revealed a fraud for profit scheme committed by several insiders of First Beneficial Mortgage Corporation. This two year fraud was perpetrated against Fannie Mae and Ginnie Mae home loan programs resulting in losses exceeding $30 million. Recently, the president of First Beneficial Mortgage Corporation and six others were convicted on conspiracy, bank fraud, wire fraud, and money laundering charges. The president was sentenced to 21 years in prison, ordered to pay $23 million in restitution and forfeited about $8 million in property.

A joint investigation conducted by the Los Angeles FBI Office and HUD-OIG illustrated an extensive scheme in which fraudulent identification and employment documents were used to perpetrate mortgage frauds. The scheme was largely assisted by an individual who regularly manufactured false identity and income documents for a profit. This document forger created W-2s, pay stubs, credit letters and social security printouts over an eight-year period. These documents were used by real estate professionals who knowingly submitted the falsified information to lending institutions. The loans were then insured by HUD and caused a loss to that agency of more than $18 million. A search warrant executed during the investigation revealed more than 100 real estate professionals had ordered false documents in the past. To date, the document forger and six associates have been convicted in the scheme, as well as fourteen real estate professionals.

A two-year joint investigation conducted by the Kansas City FBI Office, IRS, and HUD-OIG culminated on August 13, 2004 with the arrest of a local real estate investor. The real estate investor and three business associates were charged in U.S. District court for their alleged roles in purchasing run-down properties, securing fraudulent appraisals and obtaining mortgages in the names of straw purchasers. The straw purchasers were allegedly paid $2,000 for their role in the scheme whereby they placed properties in foreclosure, leaving the real estate investor and his associates with the mortgage proceeds. This scenario was repeated approximately 300 times, resulting in losses to lending and financial institutions in excess of $15 million.

Industry Liaison:

partnerships with the mortgage industry to promote mortgage fraud awareness. Over the past two years, the FBI has spoken at and participated in various mortgage industry conferences and seminars, including those sponsored by the MBA. This year the FBI will be speaking at and participating in the MBA's 91st Annual Convention and Expo. The MBA estimates that six thousand industry leaders will attend this conference.

To raise awareness of this issue and provide easy accessibility to investigative personnel, the FBI has provided contact information for all FBI Mortgage Fraud Supervisors to relevant groups including the MBA, Mortgage Asset Research Institute, Fannie Mae, Freddie Mac and others. Additionally, the FBI is collaborating with industry to develop a more efficient mortgage fraud reporting mechanism for those not mandated to report such activity. This Suspicious Mortgage Activity Report (SMARt Form) concept is under consideration by the MBA. The FBI supports providing a "safe harbor" for lending institutions, appraisers, brokers and other mortgage professionals similar to the provisions afforded to financial institutions providing SAR information. The "Safe Harbor" provision would provide necessary protections to the mortgage industry under a mandatory reporting mechanism. This will also better enable the FBI to provide reliable mortgage fraud information based on a more representative population in the mortgage industry.

A recent analysis of mortgage industry fraud surveys identified 26 different states as having significant mortgage fraud problems. Although every survey identified Georgia and Florida as having significant mortgage fraud related investigations, the survey also identified nine other states in the South and Southwest, seven states in the West and five states in the Midwest as having mortgage fraud problems. Once again, these studies illustrate the need for increased coordination among industry and law enforcement on mortgage fraud.

Lenders are increasingly aware that fraud is affecting their bottom line. Through routine interaction with FBI personnel, industry representatives are aware of our commitment to address this crime problem. The FBI frequently participates in industry sponsored fraud deterrence seminars, conferences and meetings which include topics such as quality control and industry best practices to detect, stop and prevent mortgage fraud. These meetings play a significant role in training and educating industry professionals. Companies share current and common fraud trends, loan underwriting weaknesses and best practices for fraud avoidance. These meetings also increase the interaction between industry and FBI personnel.

Additionally, the FBI continues to train its personnel and conduct joint training with HUD-OIG and industry on mortgage fraud. As a training model, the FBI seeks industry experts to assist in its internal training programs. In this past year, industry has assisted training FBI personnel on mortgage industry practices, documentation, laws and regulations. Industry partners have offered to assist the FBI in developing advanced mortgage fraud investigative training material and fraud detection tools.

Conclusion:

In conclusion, the FBI is committed to increasing liaison and education efforts and partnering with federal, state, and local law enforcement, and private industry to combat mortgage fraud. The FBI supports new approaches to address mortgage fraud and its effects on the U.S. financial system, to include:
a mechanism to require the mortgage industry to report fraudulent activity, and
the creation ofSafe Harbor provisions to protect the mortgage industry under a mandatory reporting mechanism.
Mr. Chairman, the FBI looks forward to working with you and other members of this committee on solving this problem. Thank you for allowing me the opportunity to testify before you today. I will be happy to entertain any questions you may have.

Rent, don't buy a house. Boycott buying property. Problem solved. Landlord has to make repairs and are easier to deal with than these sharks. If everybody stopped buying houses, the mortgage would have to change as a matter of course as there would be no value or money to be made. Simple solution.

Jon, At what point did I say that these companies don't do illegal things? The fact still remains that if it was profitable for them to foreclose on people you would see it on every person that has gone late on their mortgage. By the way are you in the industry? I deal with this on a daily basis and talk to creditors that do everything they can to avoid foreclosure. Are there a few bad apples out there? Of course there are. But by you showing just a few isolated cases does not prove a thing. By the way, predatory lending which is over used on this forum has nothing to do with foreclosure. Predatory lending is a whole separate issue, but back to the issue at hand. I deal with foreclosures on a daily basis and have to deal with these companies so I know the crap they pull but the fact remains that majority of the time they do not want to foreclose. Of course I am speaking in generalities but if I didn't make that clear then I apologize. Anyone can sit on a computer and find court cases for any topic showing that a company did something wrong, let's look at the bigger picture here Jon.

Also, I would say 90% of the time the home owner is to blame for the foreclosure, I was just stating for people to take responsibility for their actions and stop trying to pass the buck.

Yes I do work in the mortgage industry and the fact is I am tired of hearing about people that do not make their payments then say " they are trying to take my house because it has so much equity in it". A mortgage company can only recover the balance of the mortgage plus their costs to go through a foreclosure which is very expensive for the company, any monies left over from the sale of the house go to the customer.

Let me put it this way, if they made so much money on foreclosures then why is it the last step for these companies? Why would they bother to offer payment plans to get the homeowner caught up? Wouldn't they just sit there and wait for the homeowner to default and go get their house, especially with where the market has been the last 5 years?

I never said that mortgage companies don't break the rules or commit fraud, they most certainly do just look at Ameriquest. They are one of the largest lenders in the country and they are about to be no more because of their fraudulent practices.

All I am saying is that banks are not out to take homes away, there is much more money in having the homeowner pay their mortgage on time. Wouldn't you think they would rather have you paying them interest over the next 30 years? Have you ever looked at a truth and lending statement, just go to the box on the far left and it will show the amount of money the company is going to make over the next 30 years. I promise it's going to be a lot more than the few thousand they would make on a foreclosure.

I had a mortgage thru Option One several years ago, and since I got paid twice a month, made sure the loan papers said, "due on the first, paybable by the 15th of the month" since I did not always get paid on the first, sometimes, it was not until the 13th or 14th, so that phrase was always a concern to me.

Well, my first payment was due on I think October 1, and around Sept 27th or so, I get a phone call at work from Option One saying they don't have my payment yet, am I in trouble or have I sent it already? I said, no, I have not sent it, as it is not due until the 1st, payable by the 15th and I get paid on the 8th this month, so will pay it by then, well then they threats started, you pay it by the first OR ELSE etc etc, and they continued to harass me at work and at home for YEARS afterwards, saying that "payable by the 15th" was not a legal item (for lack of a better word on my part) and they could IMMEDIATELY foreclose on me if they did not get my payments by the 1st of each month (then why was it in the loan contract??).

Needless to say, this caused GREAT mental/physical stress on me continually the entire couple years I had them for a mortgage company with those daily, sometimes several times daily harassing calls to my workplace and home. These strong arm practices should NOT be allowed. I did call another local bank and ask then about the 'payable/due by' clause, and the loan officer said technically Option One was correct, but NO ONE that was above board in his industry would EVER threaten people by foreclosure or harass them by phone continually for weeks if they paid their payment by the 15th as stated by the loan contract!!

So, I would say avoid them at all costs,they were then part of H & R Block at that time, not sure if they are still, but I have avoided and talked friends out of using H & R Block also since then.

Robert,

You should be ashamed of yourself. After all your noronic statement (above) is absolute BULLSH$T!

Information disclosed during a recent case that was litigated in TX against Ocwen where the jury awarded the plaintiff 11.5 Million: At trial, a former Ocwen employee testified to the company's unfair practices, including paying incentives to its loan collectors for moving properties with equity into foreclosure.

Evidence also showed that the company engaged in predatory servicing by not informing borrowers of how to make their loans current and failing to give credit for payments when they were made.

We have always known that Ocwen was after the equity...but I had no idea that incentives were being offered to steal it. This puts Ocwen on a whole new level, but I cannot find a description of anything that low except the devil in his hellish kingdom.

Florida Bank Hit With $11.5 Million Verdict; Galveston Jury Says Ocwen Federal Bank FORCED Woman Into Bankruptcy

GALVESTON, Texas, Nov. 29 /PRNewswire/ -- A Galveston County jury has awarded a Texas City woman $11.5 million after finding that West Palm Beach, Fla.-based Ocwen Federal Bank engaged in a scheme of unfair, unlawful and deceptive business practices in its servicing of her home equity loan.

The jury verdict, handed down in Judge Susan Criss' 212th District Courton Nov. 29, followed eight days of trial and two days of deliberation in Sealy Davis v. Ocwen Federal Bank, et al.

In February 2002, Ms. Davis, 64, took out a $31,000 home equity loan on the Texas City residence where she had lived since 1942. Ocwen acted as the servicing agent on the loan.

In 2003, Ms. Davis became ill and spent four days in the hospital, which forced her to miss one loan payment. Ocwen told her it would put her on a payment plan, but never did. Ocwen also failed to credit Ms. Davis for the money she paid, and began to foreclose on her house while continuing to assure her she was on a payment plan.

Ocwen eventually foreclosed on Ms. Davis' home, and she filed for Chapter 13 bankruptcy in the hopes of ending Ocwen's harassment. During the
bankruptcy, however, Ocwen requested an additional $390 to cover its costs and
fees related to the default she already cured.

"We're pleased the jury decided that Ocwen should be held liable for what it did to Ms. Davis," said attorney Robert Hilliard, lead counsel for Ms. Davis and name partner in Corpus Christi's Hilliard & Munoz, L.L.P. "Home loan companies should help people own a place to live, but Ocwen apparently is more interested in taking away the homes of its customers."

In a 10-2 vote, the jury found that Ocwen knowingly and intentionally deceived Ms. Davis, and awarded her $10 million in punitive damages and $1.15 million in attorneys fees.

you need to be aware of what is going on within the mortgage industry. Do a simple internet search with the words mortgage servicing fraud.
Robert, do you work in the mortgage industry? If so, please enlighten us as to how you came to the conclusion that it is well known that money isn't being made by a foreclosure.
Where are your facts?
I will not wait for your response.
The FTC, the OTC, the SEC, etc., have and ARE investigating this fraud.
MANY mortgage servicing companies, and banks have been SHUT DOWN due to this fraud.
Temple-Inland, Guaranty Bank received a CEASE AND DESIST order.
Ocwen just got SLAMMED with a HUGE lawsuit (JURY TRIAL) for STEALING a woman's home.
If you really believe in what you are saying Robert, I'm sure that someone out there has swamp land that they would like to sell you.

you need to be aware of what is going on within the mortgage industry. Do a simple internet search with the words mortgage servicing fraud.
Robert, do you work in the mortgage industry? If so, please enlighten us as to how you came to the conclusion that it is well known that money isn't being made by a foreclosure.
Where are your facts?
I will not wait for your response.
The FTC, the OTC, the SEC, etc., have and ARE investigating this fraud.
MANY mortgage servicing companies, and banks have been SHUT DOWN due to this fraud.
Temple-Inland, Guaranty Bank received a CEASE AND DESIST order.
Ocwen just got SLAMMED with a HUGE lawsuit (JURY TRIAL) for STEALING a woman's home.
If you really believe in what you are saying Robert, I'm sure that someone out there has swamp land that they would like to sell you.

you need to be aware of what is going on within the mortgage industry. Do a simple internet search with the words mortgage servicing fraud.
Robert, do you work in the mortgage industry? If so, please enlighten us as to how you came to the conclusion that it is well known that money isn't being made by a foreclosure.
Where are your facts?
I will not wait for your response.
The FTC, the OTC, the SEC, etc., have and ARE investigating this fraud.
MANY mortgage servicing companies, and banks have been SHUT DOWN due to this fraud.
Temple-Inland, Guaranty Bank received a CEASE AND DESIST order.
Ocwen just got SLAMMED with a HUGE lawsuit (JURY TRIAL) for STEALING a woman's home.
If you really believe in what you are saying Robert, I'm sure that someone out there has swamp land that they would like to sell you.

Come on people, the majority of complaints on this website regarding mortgage companies are not valid. People make your payments on time and you will have no worries. Obviously there are going to be mistakes here and there, but most of these posts start out a little something like this... "I called the ABC company when I filed for bankruptcy and hadn't made a payment in 4 months, I've been ripped off because they want to take my house".

At what point do we as adults take some responsibility for our actions. Most of you complaining should look in the mirror before writing a complaint on a public forum.

I am truly sorry that bad things happen to good people, but the fact is your mortgage company is there to make money and if you don't pay then they need their collateral back. It is well know a mortgage company does not and cannot make money by foreclosing on your house.

Some of the companies mentioned above are NOT the actual lender, but a mortgage servicing company, (i.e. Litton Loan Servicing out of Houston, Tx.)
President Bush is pushing for every American to become a home owner, yet many Americans are losing their jobs everyday because our big corporations are moving out of the Country or closing their doors.
I got into a situatiaon with Chase Home Mortgage after having lost my job, entered into a Forbearance Agreement, paid them $3,000 and their Tulsa, Oklahoma attorneys still filed foreclosure. Even after I told them I would not make another payment until the foreclosure was dismissed, they did nothing. I have been in foreclosure for 2 years. Most of their Litigation Officers/Loss Mitigation Officers doe NOT comply with the Federal Collections Procedures Act.
Check your loan documents. Were you given a good faith estimate and a truth in lending form within 72 hours of making loan application. If not (and a lot of loan originators do not follow the law), then you can counter sue for RESPA and TILA violations and ask the court to make the mortgage company pay for your house.
RESPA = Real Estate Settlement Procedures Act
TILA = Truth in Lending

Tulsa, Oklahoma

I lived in Maryland and have contacted both Senator Sarbanes & Senator Mikulski concerning predatory lending legislation. The consumer is absoultely right that both have done extensive work on predatory lending. Senator Sarbanes has had a bill in the senate for several years. His Senate Bill 1928, the "Predatory Lending Consumer Protection Act 2003" has been held up by Repulicans and a few Deomocrats have not given him support to pass his bill, Click On:
http://www.prweb.com/releases/2005/11/prweb312926.php

Senator Mikulski worked with President Clinton and former Secretary Cuomo of HUD and The Treasury Department to form a Task Force to combat predatory lending, specifically here in Baltimore, Maryland. I have contacted her office and sent a letter of complaint about Litton Loan Servicer regarding wrongful foreclosures and mortgage foreclosure fraud. Her assistant, Ben said he would get back to me. If I hear anything, I will let you know.

Senator Sarbanes office is the only one so far that has been helpful. His office forward my complaint to the "OCC" concerning U S Bank, NA since they are the trustee bank for Litton Loan Servicer, LP. My loan had been with OCWEN before being transferred or sold to Litton. When I receive a response, I will post it on the website.

Take Care!

Last December 2002.....I barely got out of the fraudulent ripped off of Well's Fargo's foreclosure. Little did I realize I would be back in that same hell hole AGAIN!!

Well's Fargo are starting it again, as of Sept. 13.2003.

Would you believe that for the past 6 years I have not ever received a payment history from them. Even after written request.Wether in good/bad standing with them.

How does one get their RIGHTS back?

Hell is this BS. My faith is drained! There is NO LAW! There is NO JUSTICE! There is no CONSTITUTIONAL RIGHTS!

Wells Fargo has all the support that they have invested for. My so-called JUDGE'S CAMPAIGN CONTRIBUTION'S-Show's it publicly. Not only this fraud of an EQUITY LOAN With no live person for customer help/complaints.Just a ring a round the Hosien of a 800 number.

The Wells Fargo's Customer Service 800 number is a FREAKING JOKE! Every Friday it has the same number....but the title to that extension changes too frequently.

Last Friday, I spoke with a Well's Fargo Phone tagger as of the name of " SUKKI"..after politely asking her why I still have never once received payment records before 1997..the loan was taken out originally in 1987 for the amount of $150,000.00. Knowing they have changed this equity loan account number 3 different times....The newest and lamest of their lies was again given to me by her as....

Sukkii's answer was:

"Well, looking at my computer's records, I'm sorry, but there is NO INFORMATION REGARDING THIS LOAN BEFORE 1998."
I responded saying this..."Now Sukkii, you mean to tell me that Well's Fargo has no record of this account before 1998, like it does not exist?
Sukkii..responded " yes, that is what my computer is showing"
I responded as "well then that means this loan does not exist? Or the loan has already been paid off?
She responded very rudely..telling me I better pay the total needed to get this loan / house out of default".I need to hurry and refinance it.
I asked how do I do these, since the loan was deliberately (by my then, legal crooks) left in my deceased father's name? Especially, right before this legal crook goes on a last minute trip to Sweden..just to die?
She told me that I could refinance it, even in my deceased father's name, since I am the administrator of this estate.

At the conclusion of this conversation, I realized more then ever, that there is so much crookedness and greed and fraud with the courts/judges/lawyers/banks/title companies.

Maybe these groups of FRAUDULENT political and commercial members of fraud and their "paid for/pay off" gain their main support through a higher source and MAIN office? That might be why I got my e/mails blocked from the Senator? She sounded so human at first. Then to respond to me so kindly/personal just to deny my e/mail/response/rights?

If people would get out of denial and open their eyes to this fraud of our so-called system, or so-called lenders, or so-called politicians/leaders! Then maybe this BS will begin to slow down and hopefully end.

Or will it have to be to the point of them stealing your properties too?

It surely is a mess I'd love to trade with anyone!

Why do these people continue in their frenzy way?

BECAUSE THEY CONTINUE TO GET AWAY WITH IT!!

WHY?

BECAUSE PEOPLE RATHER TURN THEIR OTHER CHEEK!!

You just might be their next victim? Are you ready? Are you prepared?

Hopefully no other human has to succumb and suffer with their targeted cruelty!!!!!!

Sen. Barbara Mikulski (D-Maryland) and Sen. Paul Sarbanes (D-Maryland) are well aware of predatory lending and servicing problems with Fairbanks Capital Corp. and have demanded HUD investigate, and it has begun to do so. I would avoid one of the congressmen from Ohio, Rep. Bob Ney (R-18th Dist. Ohio) corporate tool and one of the ranking members of the House Banking committee, or maybe send him hate mail, because he's introduced legislation which would preempt strict local predatory lending laws nationwide and creates all sorts of loopholes for lenders to escape liability. No surprise since most of his campaign contributions come from the consumer finance and mortgage industries.

In any event, I think everyone having a problem with these companies should write both Sens. Mikulski and Sarbanes and make them aware this problem is not limited to one company. Write your local senators and congressperson as well and explain what their rubberstamping of corporate and PAC campaign contribution-laden legislation has done to you and your family. If they don't respond or seem to care, vote them out; elections are coming up soon.