WHY IT'S CERTAINLY NO SURPRISE
MORTGAGE LENDERS AND LOAN SERVICERS
DRAG THEIR FEET TO SPEED UP MODIFICATIONS.
BUT
YOU'D THINK THE REALITY OF THEIR SOON TO
BE EXPOSED PREDATORY TACTICS WOULD MOTIVATE
THEM TO AT LEAST WANT TO APPEAR COOPERATIVE.
SOON, VERY VERY SOON I HOPE AND PRAY THE NATION WILL REALIZE 93% OF EVERY SINGLE HOME HAS BEEN PAID FOR 50-100 TIMES OVER, THANKS TO THE BUNDLING OF MORTGAGE BACKED ASSETS, SECURITIZATION AND LIQUIDIZATION, TRANSFORMING THE SECURITY INSTRUMENTS INTO STOCK PAPERS TO BE SOLD TO INVESTORS IN THE FORM OF BONDS, CASH INSTRUMENTS.
IF YOUR LENDER CLAIMS "OWNERSHIP" OF THE ORIGINAL NOTE THAT SECURES AN INTEREST IN YOUR HOME, INSIST HE PRESENT YOU WITH THE ORIGINAL CERTIFIED, NOTARIZED DOCUMENT PROVING ORIGINAL SIGNATURES.
IF HE IS UNABLE TO PROVIDE YOU WITH AN ORIGINAL, DO NOT ACCEPT A LOST NOT AFFIDAVIT!!! CONTACT THE Securities and Exchange Commission AND ASK THEM TO HELP YOU FIND OUT IF YOUR PROPERTY WAS LIQUIDIZED, SOLD, AND BECAME PART OF A POOLING AND SERVICING AGREEMENT.
This usually happens THE SAME MONTH YOU PURCHASED YOUR HOME. However, because of the rise and fall of so many mortgage companies have them help you by looking up your address, or by name, mortgage lender, servicer, etc. They are extremely helpful.
THEY'D BETTER START MOVING OR THEY WILL
SUFFER THE BIGGER BRUISE AS A RESULT
OF STILL ANOTHER STUPID DECISION.
Impatience Grows Among Lawmakers
With Lenders, Mortgage Servicers
On Lack Of Progress On Loan Modifications
The Washington Independent reports:
A top Democrat on Monday warned the nation’s banks that, unless they get more aggressive in modifying mortgages to prevent foreclosure, Congress will renew previous efforts to empower families to keep their homes through bankruptcy. But Sen. Richard Durbin (Ill.), the upper-chamber’s second ranking Democrat, also gave the banks three months to comply with his ultimatum — a span over which roughly 1 million new homeowners are projected to enter foreclosure. [...] “I want to put the banks and mortgage servicers on notice today,” said Durbin, who sent letters Monday to each of the 34 banks that have already signed on to participate in the administration’s modification program.
The comments arrive just days after another powerful Democrat, House Financial Services Committee Chairman Barney Frank (D-Mass.), issued a similar threat to revisit cramdown. The statements are evidence of a growing impatience among some lawmakers with the banking industry’s efforts to stabilize the still-volatile housing market.
For more, see Durbin Gives Bailed Out Banks ‘Cramdown’ Ultimatum (Senate Democrat Threatens to Bring Back Bankruptcy Law Change).
posted by Home Equity Theft Reporter at 4:03 AM links to this post
Thursday, July 30, 2009
Lenders, Mortgage Servicers Continue To Force Borrowers To Waive Legal Rights As Part Of Loan Modification Process
The Washington Independent reports:
Even as the Obama administration presses the lending industry to get more mortgage loans modified, the practice of forcing borrowers to sign away their legal rights in order to get their loans reworked is a tactic that some servicers just won’t give up on. Waivers requiring borrowers to give up any legal claims related to their mortgages, even in cases where borrowers may be victims of predatory lending, are showing up sporadically in loan modification agreements under the Obama administration’s Making Home Affordable plan, consumer attorneys say. They were stunned to find the legal waivers still being used, despite more than a year of efforts – including calls from lawmakers – to get rid of them.
“It was shocking to see that people are still being asked to waive their legal rights,” said Bruce Dorpalen, national director of housing counseling for ACORN Housing Corp. “I mean, this should be abolished. It’s incredible that it’s still in there.” [...] The Treasury Department’s published guidelines for the $75 billion taxpayer funded program specifically prohibit the waivers. Mortgage giants Fannie Mae and Freddie Mac removed the waivers from their standard loan modification agreements earlier this year. But Diane Thompson, an attorney with the National Consumer Law Center, said she has seen legal waivers resurface in loan modification agreements by Aurora Loan Services, Ocwen Financial Corp., and other firms. She also is getting complaints about waivers in Bank of America agreements. “The waivers continue to be an issue,” Thompson said.(1)
For more, see Loan Servicers Work the Fine Print in Obama Foreclosure Plan (A Year After Calls for Reform, Borrowers Still Forced to Waive Legal Rights for Loan Modifications).
(1) It may be time for the Obama administration to stop throwing money at the lenders and servicers for loan modification programs and redirect the cash towards establishing and supporting foreclosure defense programs for financially strapped homeowners the way Florida Attorney General Bill McCollum recently did. See Attorney General Launches Multi-Million Dollar Grant Program for Foreclosure Defense Assistance (The Florida Bar Foundation will help administer $4 million in grants to legal services applicants).
The thought of having to deal with "producing the notes," and otherwise establishing proper legal standing to initiate foreclosures, as well as addressing allegations of fraud and violations of the applicable consumer protection laws is sure to get the attention of the mortgage industry, in my view. After all, why else are the loan servicers so intent on getting homeowners to waive their legal rights?
posted by Home Equity Theft Reporter at 9:53 AM links to this post
Wednesday, July 29, 2009
Admistration, Mortgage Servicers Meet; Agree To Increase Pace Of Loan Modifications
Bloomberg News reports:
Mortgage servicers meeting with Obama administration officials pledged to step up the pace of loan modifications, according to the U.S. Treasury. “With over 200,000 trial loan modifications already under way, we are on track to meet our goals,” Treasury Secretary Timothy Geithner said in a statement today. “Still, too many homeowners are at risk of foreclosure right now. Today’s meeting was an opportunity to identify ways to accelerate the program and bring relief faster.” The administration is setting a goal of beginning at least 500,000 trial modifications by Nov. 1, according to the statement.
For more, see Mortgage Servicers Pledge to Step Up Pace of Loan Modifications.
posted by Home Equity Theft Reporter at 4:09 AM links to this post
Monday, July 27, 2009
Mortgage Servicers To Explain Themselves To Administration Officials Regarding Failure To Keep People In Their Homes
In Washington, D.C., ABC News reports:
Mortgage servicers accused of not doing nearly enough to stem the nation's foreclosure crisis will sit down with the Obama administration tomorrow to tell their side of the story.(1) The meeting, the results of which are not expected to be made public until early next month, comes amid escalating criticism that both mortgage servicers and the government are ill-equipped to carry out Obama administration programs designed to help keep people in their homes. [...] The National Consumer Law Center, which presented testimony to the Senate earlier this month, has identified dozens of ways in which some mortgage servicers have failed to follow guidelines set by the Home Affordable Modification Program (HAMP), a five-month-old Obama administration program that pays servicers at least $1,000 for each loan modification.
Reportedly, Sen. Chris Dodd, D-Conn., has asked the administration to investigate alleged abuses of the program by mortgage servicers, which include:
Charging advance fees for loan modifications,
Telling homeowners they must be in default before becoming eligible for loan modifications,
Starting foreclosure proceedings even while a homeowner is under consideration for a loan modification.
For more, see Mortgage Companies to Meet With White House (Meeting Comes Amid Mounting Criticism of Obama Housing Programs).
(1) The mortgage servicers are responding to this recently extended invitation from Treasury Secretary Timothy F. Geithner and HUD Secretary Shaun Donovan to get together for a "friendly chat."
posted by Home Equity Theft Reporter at 7:51 AM links to this post
Wednesday, July 29, 2009
Frank Threatens To "Cramdown" Lenders, Mortgage Servicers For Foot-Dragging On Loan Modifications
The Associated Press reports:
A senior House Democrat threatened banks Wednesday that if they don't volunteer to save more homeowners from foreclosure, Congress will make them. In a sternly worded statement, Rep. Barney Frank said Congress will revive legislation that would let bankruptcy judges write down a person's monthly mortgage payment if the number of loan modifications remain low. Frank, chairman of the House Financial Services Committee, also said his committee won't consider legislation to help banks lend unless there is a "significant increase" in mortgage modifications. Frank's statement was aimed at adding momentum to a deal struck Tuesday between Treasury Secretary Timothy Geithner and more than two dozen mortgage companies. The two sides agreed to set the goal of adjusting 500,000 loans by Nov. 1.
***
"People in the servicing industry and in the broader financial industry must understand that if this last effort to produce significant modifications fails, the argument for reviving the bankruptcy option will be extremely strong, and I think there is a substantial chance that the outcome will be different," Frank said.
For more, see Frank threatens banks to stop foreclosures.
posted by Home Equity Theft Reporter at 2:49 PM links to this post
Thursday, July 09, 2009
Schwarzenegger Squeezed By Lenders, Servicers To Demand Rule Prohibiting California Attorneys From Accepting Retainers For Loan Mod Negotiations???
A press release issued by three California consumer advocates(1) announces:
The lending industry and loan servicing lobbyists have successfully pressured Governor Schwarzenegger to demand that language be included in SB 94 that would prohibit attorneys from accepting retainers for loan modification negotiations with their loan servicers.(2) The language, if adopted, will prevent homeowners from seeking legal representation to save their home from foreclosure.
For the rest of the press release, see Lending Industry Attacks California Homeowner's Rights to Legal Representation (California Governor Arnold Schwarzenegger told the legislature over the weekend that he would not sign AB 94, a law that would protect homeowners from mortgage modification companies, unless they included a clause that would prohibit attorneys from accepting retainers for performing legal services to prevent foreclosures).
(1) Martin Andelman, of mandelmanmatters on ml-implode.com; Alan Jablonski, a Long Beach, CA based consumer rights attorney, J. Arthur Roberts, a bankruptcy attorney located in Newport Beach, CA.
(2) Reportedly, the language proposed is as follows, according to Martin Andelman:
"5) Prohibits persons including attorneys, until January 1, 2013, who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform a mortgage loan modification or other compensation paid by the borrower to do any of the following:a) Claim, demand, charge, collect, or receive any compensation until after the licensee has fully performed each and every service the licensee contracted to perform or represented that he/she would perform."
posted by Home Equity Theft Reporter at 4:06 AM links to this post
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