By Rob Harrington
Email to Senate Sub-Committee re: WAMU’s Fraudulent (criminal) business practices
I am sending out copies of this email to others to enlighten them as to the Senate Sub-Committee hearing with Kerry Killinger and Steve Rotella, both formerly of Washington Mutual Bank (WAMU.)
I have proof that WAMU INTENTIONALLY changed my debt to income ratio to willingly “force” the LPS Desktop underwriting program to “approve” my loan. This would mean three things:
1- WAMU deliberately and maliciously removed approximately 40% of my debt against my Debt to Income Ratio to over-ride the initial underwriter “decline” to generate a final “approval.”
2- My loan was based on FULL DOCUMENTATION of TWO YEARS of Tax Returns, Profit and Loss Statements, Balance Sheet and Operating Statements, Corporate returns, Copies of Leases, and checking statements which would have PLAINLY EVIDENCED THE DEBT OF THESE THREE MORTGAGES THAT WERE SIMPLY TOSSED ASIDE.
3- A consumer who would have performed this same act would be GUILTY of LOAN FRAUD, and due to the evidence and motive, would have been prosecuted and convicted of Loan Fraud.
In addition, the same final underwriter, cut the property taxes in half (approximately $4700) after PLAINLY ACKNOWLEDGING the taxes at approximately $10,000 in a prior agreed upon settlement statement. Again, this effort was clearly to force the LPS Desk-Top Underwriting Software to force the loan from a “decline” to an “approval.” Again, this would be considered loan fraud if perpetrated by a consumer. Regretfully, the property tax deficiency caused an unrealistic, unforeseen and unmanageable $1400.00 per month SPIKE in my mortgage payment 17 MONTHS AFTER CLOSING. Imagine, if your monthly payment unexpectantly and unfairly went up $1400 per month, would you be very happy?
I was sent a LOAN APPROVAL LETTER earlier than the initial “decline” indicating that it was a “good enough” loan at the dollar amount that I could shop, prepare to purchase, and close on a house at the commensurate price level of a million dollars. This proves two things about WAMU’s UNCLEAN HANDS and UNFAIR & DECEPTIVE BUSINESS PRACTICES:
1- They were willing to do anything they wished to approve the loan that WAMU knew would already fail.
2- That WAMU would approve this loan on the basis of utilizing the lowest payment of a NEGATIVE AMORTIZATION instead of the highest, fully indexed payment, as should have been an industry standard for underwriting “safety and soundness.”
The NEGATIVE AMORTIZATION feature of the OPTION ARM LOAN was NEVER FULLY DISCLOSED to me prior to the closing. This was a material misrepresentation to a fact and clearly produces FRAUDULENT INDUCEMENT. A reasonable person would have NEVER gone through with this TOXIC, EXPLODING LOAN that would severely damage my family’s lives for over the past 3 years, ruining my (our) great credit, costing me (us) 100,000′s of dollars, and losing potentially millions of dollars in income – past, present and future.
The terms and conditions of my entire loan changed at closing. So WHY did I not “see” all of the changes? Because I WAS NOT AT THE CLOSING. WAMU failed to meet the first closing date, I was out of town on business, and my wife and realtor went in my place. HOW WAS MY WIFE TO KNOW OF ALL THE ABRUPT, UNFORSEEABLE CHANGES made at the eleventh hour and 59th minute of a arduous two month process of merely buying a home? WAMU knew I was NOT going to be there to “catch” the changes.
WAMU certainly never expected to meet a Rob Harrington, or thousands like me, who would devote the rest of their lives to investigating and prosecuting the FRAUDULENT LENDING PRACTICES AND PATTERNS of “banks” like WAMU. I possess over 3000 additional pages of other documents, 100′s of phone calls, 1000′s of emails, and have researched and interviewed countless victims of (alleged) fraudulent and forged assignments and (alleged) illegal foreclosures across the country. The (alleged) abuse of process in the courts today by the corporations and their attorneys are a shameful recognition of how truly corrupt the process is against the homeowner.
The OTS, the most “shopped regulator” in the history of our country, “encouraged” banks like WAMU, Countrywide, IndyMac, World Savings, etc., to violate the very laws the OTS was supposed to enforce to protect the consumer.
Additionally, the FDIC is complicit as a “lax” regulator, who not only paid bonuses to their employees during the fraudulent boom, but they now stand in the way of WAMU homeowners seeking legal redress and are (allegedly) forcing FRAUD UPON THE COURTS/AB– USE OF LEGAL PROCESS upon struggling homeowners who really cannot afford proper legal representation. Furthermore, the FDIC profits from REO dispositions of foreclosed houses by the same failed (Bankrupt) banks who perpetrated the massive bulk of LENDING FRAUD. JPMorgan Chase is (allegedly) complicit in this scheme, as well. (Please reference the TEXAS ACTION in WAMU vs. FDIC/JPMorgan Chase – Delaware Bankruptcy Court)
A CRIMINAL AND CIVIL RICO CONSPIRACY EXISTS, and I bet you a dollar, not one word comes out in the sub-committee hearing (with Kerry Killinger and Steve Rotella) regarding the inherent criminality of what the mainstream media has universally termed “lax and reckless lending.” I promise you, by GOD, this will become exposed to the mass public, with or without their help. May GOD help anyone who hides and masks the truth as has been done so far. That would make many in Congress and Government – AIDERS AND ABETTORS – to a criminal and civil conspiracy, before, during and after the fact.
Shame on our Government (and BOTH POLITICAL PARTIES,) paid for by the taxpayers and citizens, the body that was supposed to protect all of us from the excesses and unfair profits of PROVABLE ORGANIZED CORPORATE FRAUD.
My name is Rob Harrington. I will swear by oath and attest that my 3 years of (almost) daily research and investigation will reveal the TRUTH about organized fraudulent lending.
Feel free to interview me, and the MILLIONS(?) of consumers who were most likely victims of LENDER FRAUD between the years of 2003 – 2007, especially by WAMU.
Consumers should NOT be expected to have to become attorneys who specialize in Real Estate Law, Contract Law, Finance Law and Securities Law… simply to buy and own a HOME!
The ONLY SOLUTION to fix our country and economy, is to investigate, prosecute and incarcerate corporate criminals and make the consumer victims of Corporate fraud whole again. Anything short of this solution and goal is treasonous and criminal.
Nina, please share this email with the distinguished members of this very important Sub-Committee. Thank you and your members if their work is really designed to lead to real change that we as citizens can (finally) believe in.
Co-Founder & Un-Paid Volunteer/
National WAMU Homeowners Support Group