Fraudclosure | Problems Rampant in Mortgage Servicing

“Servicers … have been so understaffed that they are incredibly sloppy in their record-keeping,” Eggert said. “So they’ve been charging people late fees who aren’t late, not crediting payments properly, and then turning around and foreclosing based on late fees that should never have been charged in the first place.”

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Problems rampant in mortgage servicing, advocates and regulators say

Errors, misbehavior point to need for reform

Anca Safta never missed a payment on her loan to expand her Lutherville home. But that didn’t stop Safta’s mortgage servicer from citing her this year for failing to pay, reporting her to credit agencies and threatening to foreclose.

“It was just a nightmare,” said Safta, a physician at the University of Maryland Medical Center who got the loan to build an extension for her parents to live in.

What happened? Her servicer had not credited the payments to her account.

It might seem to be a simple problem. It’s not. A growing number of lawsuits, investigations and studies indicate that servicer blunders and outright misconduct are common — and difficult for homeowners to resolve. Borrower advocates and regulators say the system is effectively broken.

“This isn’t just a few technical errors,” said Anne Balcer Norton, the state’s deputy commissioner of financial regulation. “The entire servicing model needs to be revised.”

Precise statistics on the incidence of rule-breaking or the percentage of loans with servicer errors have proved elusive.

“We do not yet really know the full extent of the problem,” Federal Deposit Insurance Corp. Chairwoman Sheila C. Bair told the Senate Banking Committee in May.

For more examples of “Servicing Errors” continue reading here…

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4closureFraud.org

Comments
14 Responses to “Fraudclosure | Problems Rampant in Mortgage Servicing”
  1. lvent says:

    BLOOMBERG reporting: The Consumer Protection Bureau will be writing rules for mortgage servicers. Stop the charades. They do not care what the rules are. To them rules are made to be broken. They don’t follow the law so why would they follow the rules? Their foreign owners tell them what to do and they break the law with impunity everyday and the U.S. GOVERNMENT does virtually nothing to stop them.. Find the fraud people and save yourself.

    • tb says:

      It is called a manufactured default.. the servicers violate the terms of the mortgage on purpose , by misapplying payments, paying out to other entitys before applying the payments in order as specified in the terms of the mortgage. The servicer then states that the payment that was sent was not enough to pay the monthly amount and pays what they want after putting the remainder in a suspense account. The servicer then sends only a notice that says the payment was insufficent to cover the monthly payment and will not be applied which is a violation of the terms of the mortgage.

      • tb says:

        Once payment is received and a transaction of funds have taken place … the servicer is obligated to apply the proceeds as it is written in the terms of the mortgage or send it back… but the servicer does as stated above instead of sending back what they claim was insuffient.AS SUCH THEY MUST APPLY THE PAYMENT THAT THEY ACCEPT BY THE TERMS OF THE MORTGAGE.

  2. Ladies and gentleman, this common practice by the Banksters and Servicegangsters

  3. Fury says:

    it is way more than just being “sloppy.”
    it is systematic fraud that has destroyed our nation and the lives, property, and savings of swindled
    homeowners.

  4. Alison says:

    It is almost impossible to collect a “Chain of Title”. I had Washington Mutual and as evertone knows was the largesr siezure of a bank in American history. I recieved a statement fm Washingtonton Mutual saying our loan was either paid, transferred to another mortgage company or assumed by a new owner. This was never recorded with our Recorder of Deeds. Then the FDIC daid Chase had it. I called them and they never heard of it. How’s that for a lost assignment!!!!!!

  5. housemanrob says:

    With these servicers and pretender lenders it’s…………HERE IS YOUR SERVICE………BEND OVER!

  6. housemanrob says:

    None of these banks or servicers EVER try to do the right thing! Good luck!….trying to work with them.

  7. angry & NOT TAKIN IT! says:

    understaffed leads to,lying perjury,deceit ???…. understaffed my ass..they are criminals straight up!

  8. Matt says:

    This problem is more widespread than people might think.

    There is a case in New Jersey where Chase got confused between Orange County, NJ and Orange County, CA.

    http://new-jersey-foreclosure-lawyer.com/2011/07/05/a-tale-of-two-orange-counties/

  9. Jason Werner says:

    That story is not a mere mistake or accident by he bank, but rather an attempt to steal, defraud, and cause terror.

    I worked in the banking industry. The banks originate a bunch of junk loans by lying to borrowers, deceiving everyone involved in the transaction, and lying to investors. The originators have nothing to lose because they have already stolen money from lenders to pretend lend it to the main victim (borrower). The “loan” though is secured by mortgage company through mortgage insurance, so even the lender has nothing to lose, whereas there are other victims involved such as the mortgage insurance company, the investor, and taxpayers.

    We (banks) have no risk in the thing. We can just burn it down and screw everybody, whereas we have hijacked even the courts, forcing the whorehouses (courthouses) to grant our every motion because the employees of the court would lose their job without their business, so the SERVICERS obtain more fraudulent fees in the frivolous litigation that my employers filed against unsuspecting victims.

    But the Bible says the banks will eventually fall, hard.

    • lvent says:

      Thank You Jason for sharing that. You have helped to validate our claims. We need more Americans like you who have worked inside the industry to step up and help legitamize homeowners claims of rampant fraud and criminal abuse.. We have been intentionally set up, used and abused and kicked to the curb by the IMF OWNED GSE’s and the FOREIGN MULTINATIONAL OWNED Banks and their only true intention was to create huge wealth for themselves off of our signatures,, steal all of our wealth by intentionally ringing America up with bad debt that they created out of thin air and then intentionally collapse our economy. They then spread our wealth that they stole from us in their fake economic collapse all around the world. They are determined to destroy American Sovereignty by trying to bankrupt America and declare America broke because they want to own and enslave us.. America is not broke, that is a lie…The justice system is broken.,The banks are acting like they own the place and they DO NOT. They may have corrupted EVERYTHING, but they don’t own US yet..The U.S GOVERNMENT MUST STOP THE NWO, FOREIGN MULTINATIONAL TYRANNY FROM STEALING AMERICA OR THE AMERICAN PEOPLE NEED TO FORCE THEM OUT OF OFFICE.. I believe what the Bible says. Their day will come.

  10. lies all of it says:

    ok florida has 25% of the foreclosures in the entire usa and we are questioning servicers pa leze will some one write pam bindi (yes bindi she is acting like steve irwins daughter) and tell he we need help no jobs and top in foreclosure what are we going to do be homeless live in our cars when we have no more money i have 3 kids geeze for gods sake

    • lvent says:

      That is what the TYRANNY who devised and carried out this PONZI SCHEME via proxies like FANNIE MAE AND FREDDIE MAC wants for the American people. They hate us, they hate our freedom. They want us living in tent cities, jobless and destitute or renting and they want the foreigners to come over here and buy up our homes for a song. The Chinese and other foreigners have been coming over here on FORECLOSURE TOURS to buy up the fraudclosures I hear to use them as rentals. Now if that is not a slap in our face, kick in our teeth. THE TRAITORS AND TREASONISTS HIDING WITHIN THE U.S. GOVERNMENT SHOULD BE DRAGGED OUT OF THEIR OFFICES AND HUNG BY THE AMERICAN PEOPLE FOR ALLOWING THE FOREIGN TYRANNY TO DO THIS TO US, BEHIND OUR BACKS. SCUMBAG, DIRTBAG, FILTHBAGS ALL OF THEM. THEY ARE A DISGRACE TO AMERICA.. THEY ARE ALL COMPLETELY CORRUPT, — USELESS AND DISHONORABLE.

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