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When it comes to obtaining a loan modification, Wells Fargo’s reputation is a long way from being stellar. In fact, they’re one of the worst, according to several attorneys who have had significant experience working with the bank on behalf of clients over the past six months. So, when I read this past week that a woman in Phoenix had filed a complaint claiming that Wells Fargo had ignored her request for a modification, it was hardly news to me.
According to a story from KPHO.com, Channel 5 in Phoenix, the woman’s name is Bobbi Giguere, and apparently she applied to Wells Fargo for a modification this past December after losing her job, and got nothing but lies, the run-a-round, and finally a foreclosure notice in return. The KPHO.com story quoted her as saying:
“I sent them everything they asked for, and then when I called to follow up they said, ‘What paperwork? What modification? We don’t know what you’re talking about,’” said Bobbi Giguere.
So, now a federal bankruptcy judge in Phoenix, Judge Randolph Haines, has ordered that a top Wells Fargo executive must come and testify about the bank’s loan modification policies.
Ms. Giguere’s bankruptcy attorney was also quoted in the story as saying that it’s “very unusual” for a judge to issue such an order. “The judge is trying to send a message to Wells Fargo and other banks that they need to pay better attention to customers who want to modify their home loans,” Nussbaum told Phoenix’s Channel 5.
Okay, so what? Big deal, right? Yet another story about a bank or servicer not doing what they’re supposed to do under the president’s Making Home Affordable program. Well, here’s the rub…
Again, according to the KPHO.com story, Wells Fargo responded by issuing the following statement from Mary Coffin, the bank’s head of home mortgage servicing. It said:
“We appreciate the court giving us the opportunity to share our servicing practices, which include working with all customers facing hardships — even if they declare bankruptcy — until every reasonable option to prevent foreclosure has been exhausted.”
The bank “appreciates” the court providing the opportunity to “share” servicing practices? Does anyone not see just how far from contrition we are here. We, and by “we” I mean anyone involved in obtaining loan modifications from servicers, all know what’s going on here… Wells Fargo is full of you know what.
They routinely deny having received paperwork, routinely refuse to comply with the rules of the president’s program, and obviously aren’t the slightest bit concerned that they be called to task for their widely known shortcomings that are putting people out of their homes and onto the street. Their practices are costing our president a great deal of credibility, and preventing our economy from even coming close to starting on a path to recovery.
CBS 5 News also reported that after running the story, many other homeowners contacted the station, “sharing remarkably similar frustrations”.
According to the station:
“Getting the runaround about lost paperwork was amongst the most common complaint. The complaints came from customers using a variety of loan providers, including but not limited to Wells Fargo and Bank of America.”
Channel 5 also quoted Arizona Attorney General Terry Goddard as giving banks and servicers “a D minus” when he was asked to grade them as related to helping homeowners obtain loan modifications. He went on to refer to the servicers’ response to the president’s program as “pathetic”.
Apparently, Channel 5 called Wells Fargo for a comment on the case and Ms. Coffin replied that the bank “could have offered better customer service and definitely could have communicated better.” Well, gee golly whiz… could they now? Is that all they could have done?
Listen, I’ve had enough with the sugarcoating that surrounds this issue. What the bank/servicer could have done is live up to its agreement to participate in the Making Home Affordable program. Wells Fargo took billions of dollars from taxpayers and they agreed to the terms of the president’s program. They need to live up to that agreement and they’re not… not even close. What was the percentage of Wells Fargo loans modified under the program that was reported last week in the administration’s “report card”?
Oh yeah… 6%. And in response, Wells Fargo’s Mike Heid, co-president of Wells Fargo’s mortgage unit issued the following statement:
“We know we’ve fallen short of our customer service goals in some cases.”
They’ve got to be kidding.
According to Phoenix’s Channel 5, “a Wells Fargo executive is scheduled to testify in federal court on September 3rd. The hearing was originally scheduled for this week, but the judge granted Wells Fargo an additional two weeks to research internal records and prepare their case.”
Wells Fargo needed a little extra time? In my view, they should have been given the same amount of extra time they’ve too often given homeowners before they’ve foreclosed on their homes… none.
For more information on how our FMA (Forensic Mortgage Audit) program and loan modification processing services can help you to be more effective in your fight to save homes, or if you believe you or someone you know has been a victim of Predatory Lending and/or Mortgage Fraud, please call the following number TODAY: (888) 201-8608. You can also email us at help@nafmainc.org
Thursday, August 27, 2009
Monday, August 24, 2009
Sleazy Servicing Companies
AP News reported recently that mortgage servicers, the same mortgage servicers that have received and continue to receive hundreds of millions in federal funds to modify mortgages as part of President Obama’s Making Home Affordable program, are engaging in practices that would make the worst loan modification company in history look like the Boy Scouts of America.
According to the AP’s report, which came out today:
Julia Gordon, senior policy counsel with the Center for Responsible Lending, was quoted by AP as saying: “Servicers have flown under the regulatory radar.”
The AP story also described the plight of Jerry Turner, who was promised a loan modification as part of a court ordered settlement, but instead his loan’s servicer, Select Portfolio, foreclosed on the property and then the bank took the house back at auction.
It gets worse… Select Portfolio never told Turner that his house had been sold. And they kept sending Turner invoices and continued cashing his monthly checks. Incredibly, Mr. Turner didn’t find out that he had lost his home until it was sold a second time at auction – because Select Portfolio failed to pay the property taxes on the home on which they had long since foreclosed. There’s a lawsuit pending in West Virginia courts, it should come as little surprise.
According to AP, “Many servicers in line for government money are accused of ongoing, systematic abuses”. Read that again. “Many” servicers? “Many”? I don’t remember hearing that during Obama’s speech on the Making Home Affordable program… or on the news at anytime since.
Select Portfolio, as part of its 2003 settlement with government regulators, pledged to stop collecting illegal fees and forcing borrowers to buy insurance. But the company is now owned by Credit Suisse, and since then they’ve been sued dozens of times for the same sort of thing.
And check this out: Craig Bullock, a spokesman for Select Portfolio, said the company doesn’t comment on inquiries “about our practices and so forth.”
Is that right, Craigers, you spineless sycophant? What is it that the company does comment on?
How about I write up all the crap you’re company has obviously been involved in… and I mail it in an invitation style envelope to your Mom. How would that be, Craigy-poo? Do you think you could comment on that, ass-face?
Another servicer, Ocwen, is apparently in line to receive more than $500 million from the Treasury, but is defending a federal class-action suit for harassing homeowners, charging illegal fees, and adding unnecessary insurance premiums to borrowers’ bills. The complaint states that Ocwen was involved in:
“A nationwide scheme of illegal, unfair, unlawful, and deceptive business practices.”
Get involved in a national scheme of illegal, unfair, unlawful, and deceptive business practices that harm homeowners and cause them to lose their homes, and this government’s response seems to be: No problem, Sir, the line for the $500 million is right over there.”
Get involved in trying to help homeowners get their mortgages modified and they’ll shut you down, call you a scammer, and possibly even file criminal charges… because you failed to give someone 100% of their money back in 72 hours after working on the file for six months.
Paul Koches, Ocwen’s general counsel, in an email said: “We have a deep and continuing commitment to foreclosure prevention.” Jackass.
Now, please pay particular attention to this next part:
According to AP, at least 28 other mortgage servicing companies on Treasury’s list also have been charged with, and in many cases settled, similar accusations.
And Treasury still says that it has no choice but to work with all servicers, no matter how dubious their records. Treasury spokeswoman Jenni Engebretsen said that refusing to work with a particularly bad player would “deprive homeowners who have mortgages with that servicer from getting modifications.”
Oh, I see. Like the way working with those servicers is getting people modifications now, Jenni? Well, I suppose it’s working 9% of the time, according to data published today (August 4th) by the U.S Treasury.
President Obama, Secretary Geithner… this isn’t funny… you guys should be ashamed of what you’ve done here. And the fact that neither of you have had the decency to say anything to the American people, the fact that you paid these corporate hooligans hundreds of millions while people were losing their homes and their jobs… well, it is repulsive.
For more information on how our FMA (Forensic Mortgage Audit) program and loan modification processing services can help you to be more effective in your fight to save homes, or if you or someone you know is a victim of Predatory Lending and/or Mortgage Fraud, please call NAFMA TODAY: (888) 201-8608. You can also email us at help@nafmainc.org
According to the AP’s report, which came out today:
- At least 30 servicers are being sued for charging illegally high fees, using illegal collection practices, and foreclosing on homes prematurely.
- At least 14 have been accused lying to homeowners about whether they would qualify for loan modifications or how low their payments would be if they did receive a modification. And in many cases, the servicers are accused of telling borrowers not to make payments because their applications for modification were being reviewed… and then moving to foreclosure anyway.
Julia Gordon, senior policy counsel with the Center for Responsible Lending, was quoted by AP as saying: “Servicers have flown under the regulatory radar.”
The AP story also described the plight of Jerry Turner, who was promised a loan modification as part of a court ordered settlement, but instead his loan’s servicer, Select Portfolio, foreclosed on the property and then the bank took the house back at auction.
It gets worse… Select Portfolio never told Turner that his house had been sold. And they kept sending Turner invoices and continued cashing his monthly checks. Incredibly, Mr. Turner didn’t find out that he had lost his home until it was sold a second time at auction – because Select Portfolio failed to pay the property taxes on the home on which they had long since foreclosed. There’s a lawsuit pending in West Virginia courts, it should come as little surprise.
According to AP, “Many servicers in line for government money are accused of ongoing, systematic abuses”. Read that again. “Many” servicers? “Many”? I don’t remember hearing that during Obama’s speech on the Making Home Affordable program… or on the news at anytime since.
Select Portfolio, as part of its 2003 settlement with government regulators, pledged to stop collecting illegal fees and forcing borrowers to buy insurance. But the company is now owned by Credit Suisse, and since then they’ve been sued dozens of times for the same sort of thing.
And check this out: Craig Bullock, a spokesman for Select Portfolio, said the company doesn’t comment on inquiries “about our practices and so forth.”
Is that right, Craigers, you spineless sycophant? What is it that the company does comment on?
How about I write up all the crap you’re company has obviously been involved in… and I mail it in an invitation style envelope to your Mom. How would that be, Craigy-poo? Do you think you could comment on that, ass-face?
Another servicer, Ocwen, is apparently in line to receive more than $500 million from the Treasury, but is defending a federal class-action suit for harassing homeowners, charging illegal fees, and adding unnecessary insurance premiums to borrowers’ bills. The complaint states that Ocwen was involved in:
“A nationwide scheme of illegal, unfair, unlawful, and deceptive business practices.”
Get involved in a national scheme of illegal, unfair, unlawful, and deceptive business practices that harm homeowners and cause them to lose their homes, and this government’s response seems to be: No problem, Sir, the line for the $500 million is right over there.”
Get involved in trying to help homeowners get their mortgages modified and they’ll shut you down, call you a scammer, and possibly even file criminal charges… because you failed to give someone 100% of their money back in 72 hours after working on the file for six months.
Paul Koches, Ocwen’s general counsel, in an email said: “We have a deep and continuing commitment to foreclosure prevention.” Jackass.
Now, please pay particular attention to this next part:
According to AP, at least 28 other mortgage servicing companies on Treasury’s list also have been charged with, and in many cases settled, similar accusations.
And Treasury still says that it has no choice but to work with all servicers, no matter how dubious their records. Treasury spokeswoman Jenni Engebretsen said that refusing to work with a particularly bad player would “deprive homeowners who have mortgages with that servicer from getting modifications.”
Oh, I see. Like the way working with those servicers is getting people modifications now, Jenni? Well, I suppose it’s working 9% of the time, according to data published today (August 4th) by the U.S Treasury.
President Obama, Secretary Geithner… this isn’t funny… you guys should be ashamed of what you’ve done here. And the fact that neither of you have had the decency to say anything to the American people, the fact that you paid these corporate hooligans hundreds of millions while people were losing their homes and their jobs… well, it is repulsive.
For more information on how our FMA (Forensic Mortgage Audit) program and loan modification processing services can help you to be more effective in your fight to save homes, or if you or someone you know is a victim of Predatory Lending and/or Mortgage Fraud, please call NAFMA TODAY: (888) 201-8608. You can also email us at help@nafmainc.org
Friday, August 14, 2009
Lenders Collect a TON of Fees On Foreclosures!
If you've ever thought to yourself "Isnt it in my mortgage company's best interest to work with me and keep me in the property considering how much they stand to lose in a foreclosure sale?" If so, think again. It's already common knowledge that lenders couldnt care less about you or where you end up if you lose your home. But to make matters worse, according to the following artical posted in the New York Times just recently, lenders may be reluctant to help homeowners in financial trouble because they actually collect a TON of fees on homes in foreclosure! Interested? Read on.
This week, the Obama administration summoned mortgage company executives to Washington to demand they move faster to lower payments for homeowners sliding toward foreclosure. Treasury officials called on the companies to hire and train more people quickly to field applications for relief.
But industry insiders and legal experts say the limited capacity of mortgage companies is not the primary factor impeding the government’s $75 billion program to prevent foreclosures. Instead, it is that many mortgage companies are reluctant to give strapped homeowners a break because the companies collect lucrative fees on delinquent loans.
Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. So the longer borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services.
“It frustrates me when I see the government looking to the servicer for the solution, because it will never ever happen,” said Margery Golant, a Florida lawyer who defends homeowners against foreclosure and who worked in the law department of a major mortgage company, Ocwen Financial. “I don’t think they’re motivated to do modifications at all. They keep hitting the loan all the way through for junk fees. It’s a license to do whatever they want.”
Reluctant to modify loans?
Rich Miller, a governance project manager at Countrywide Financial and Bank of America before he left in January, said Bank of America had been reluctant to modify loans, which hurt the bottom line. The company has been waiting and hoping the economy will improve and delinquent customers will resume making payments, he said.
“That’s the short-term strategy,” said Mr. Miller, who oversaw training programs at Countrywide, which was bought by Bank of America. He now works as an industry consultant.
Bank of America disputed that characterization. “To think that somehow or other we would jeopardize investor relationships and customer relationships for the very small incremental income we would receive by delaying seems ludicrous,” said Robert V. James, the bank’s senior vice president for mortgage operations and insurance. “It’s not the right thing to do.”
Mortgage companies, some of which are affiliated with the nation’s largest banks, are paid to manage pools of loans owned by investors. The companies typically collect a percentage of the value of the loans they service. They extract their share regardless of whether borrowers are current on their payments. Indeed, their percentage often increases on delinquent loans.
Chance to add revenue
Legal experts say the opportunities for additional revenue in delinquency are considerable, confronting mortgage companies with a conflict between their own financial interest in collecting fees and their responsibility to recoup money for investors who own most mortgages.
“The rules by which servicers are reimbursed for expenses may provide a perverse incentive to foreclose rather than modify,” concluded a recent paper published by the Federal Reserve Bank of Boston.
Under the Obama administration’s foreclosure program, a servicer that modifies a loan for a homeowner collects $1,000 from the government, followed by $1,000 a year for each of the next three years. A senior Treasury adviser, Seth Wheeler, said these payments amounted to “meaningful incentives to servicers to help overcome the challenges and competing demands they face in considering and completing loan modifications.” He added that mortgage companies “are contractually obligated to the terms of this program, which require them to offer modifications to qualified borrowers.”
But experts say the administration’s incentives are often outweighed by the benefits of collecting fees from delinquency, and then more fees through the sale of homes in foreclosure.
For more information on how our FMA (Forensic Mortgage Audit) program and loan modification processing services can help you to be more effective in your fight to save homes, or if you believe you or someone you know has been a victim of Predatory Lending and/or Mortgage Fraud, please call the following number TODAY: (888) 201-8608. You can also email us at help@nafmainc.org
This week, the Obama administration summoned mortgage company executives to Washington to demand they move faster to lower payments for homeowners sliding toward foreclosure. Treasury officials called on the companies to hire and train more people quickly to field applications for relief.
But industry insiders and legal experts say the limited capacity of mortgage companies is not the primary factor impeding the government’s $75 billion program to prevent foreclosures. Instead, it is that many mortgage companies are reluctant to give strapped homeowners a break because the companies collect lucrative fees on delinquent loans.
Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. So the longer borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services.
“It frustrates me when I see the government looking to the servicer for the solution, because it will never ever happen,” said Margery Golant, a Florida lawyer who defends homeowners against foreclosure and who worked in the law department of a major mortgage company, Ocwen Financial. “I don’t think they’re motivated to do modifications at all. They keep hitting the loan all the way through for junk fees. It’s a license to do whatever they want.”
Reluctant to modify loans?
Rich Miller, a governance project manager at Countrywide Financial and Bank of America before he left in January, said Bank of America had been reluctant to modify loans, which hurt the bottom line. The company has been waiting and hoping the economy will improve and delinquent customers will resume making payments, he said.
“That’s the short-term strategy,” said Mr. Miller, who oversaw training programs at Countrywide, which was bought by Bank of America. He now works as an industry consultant.
Bank of America disputed that characterization. “To think that somehow or other we would jeopardize investor relationships and customer relationships for the very small incremental income we would receive by delaying seems ludicrous,” said Robert V. James, the bank’s senior vice president for mortgage operations and insurance. “It’s not the right thing to do.”
Mortgage companies, some of which are affiliated with the nation’s largest banks, are paid to manage pools of loans owned by investors. The companies typically collect a percentage of the value of the loans they service. They extract their share regardless of whether borrowers are current on their payments. Indeed, their percentage often increases on delinquent loans.
Chance to add revenue
Legal experts say the opportunities for additional revenue in delinquency are considerable, confronting mortgage companies with a conflict between their own financial interest in collecting fees and their responsibility to recoup money for investors who own most mortgages.
“The rules by which servicers are reimbursed for expenses may provide a perverse incentive to foreclose rather than modify,” concluded a recent paper published by the Federal Reserve Bank of Boston.
Under the Obama administration’s foreclosure program, a servicer that modifies a loan for a homeowner collects $1,000 from the government, followed by $1,000 a year for each of the next three years. A senior Treasury adviser, Seth Wheeler, said these payments amounted to “meaningful incentives to servicers to help overcome the challenges and competing demands they face in considering and completing loan modifications.” He added that mortgage companies “are contractually obligated to the terms of this program, which require them to offer modifications to qualified borrowers.”
But experts say the administration’s incentives are often outweighed by the benefits of collecting fees from delinquency, and then more fees through the sale of homes in foreclosure.
For more information on how our FMA (Forensic Mortgage Audit) program and loan modification processing services can help you to be more effective in your fight to save homes, or if you believe you or someone you know has been a victim of Predatory Lending and/or Mortgage Fraud, please call the following number TODAY: (888) 201-8608. You can also email us at help@nafmainc.org
Tuesday, August 11, 2009
Obama's Plan: Over 500 Bad Reviews!
CNNMoney.com reported recently that an overwhelming amount of reviews from nearly 500 homeowners just like you have been pouring in regarding their experiences with the new making Homes Affordable Plan. The following are a few of the complaints found on the CNNMoney.com list:
“Obama’s plan is a joke,” wrote Jean in Michigan. “The banks are a joke… fax, fax, fax, call, call, call and no response for months. Even Washington representatives can’t get an answer or help, what a sham!!!!”
“I have a Fannie Mae loan through Bank of America and have been fighting with Bank of America since May to work with me. They continue to indicate that I do not qualify during this phase, but yet Fannie Mae says I do. BofA has given me every possible roadblock and excuse. They are definitely doing this intentionally.”
“Litton Loan serving is the worst. I did an informal email survey received responses from 123 people who applied for Load Modification…NOT ONE got the Modification. All were lied to and dragged along for weeks until finally they were told they did not qualify. Who can stop this madness?”
So you call your lender, spend 15 minutes on hold, 10 minutes verifying your identity to Sergio in India and another 20 minutes explaining why you need a loan modification, only to be told you're calling the wrong department. For some reason the lender is lacking the cutting edge technology required to transfer the call which means you'll have to hang up and start the process all over again...splendid.
After being treated like a number (more specifically number 2) and wasting another hour of your life on the phone speaking to a long line of people who couldn't care less about you or your home, you're told to complete a financial worksheet, send in your income documents and "wait". Wait for what? How long does it take to determine your eligibility for a modification? It took the lender less than 20 minutes to approve the loan, yet its taking them no less than 20 days to approve a work out plan. Reality sets in as you realize the banks already received their stimulous package and simply couldnt care less about you or your home. That being said, you decide to give the same bank that set you up for failure once before the benefit of the doubt. After all, whats the worst that can happen?
So you rush to gather your documents, only to spend the next two days faxing and refaxing until the lender finally confirms their receipt. According to your lender, the process may take between 30-60 days to complete. FYI: A pending modification does not obligate your lender to stay any active foreclosure proceedings. As one hand dangles a carrot, the other hand may be reaching in your pocket for your house keys!
After a month of sleepless nights haunted with visions of the County Sheriff showing up at your door with a foreclosure notice, your heart sinks as you're told the modification has not been approved (why? because their computer said so) and your only options would be to sell your home, accept a repayment plan or lose it to foreclosure. Now what?
If this sounds like an experience you or someone you care about has had with a lender, please call NAFMA today at (888) 201-8608. You can also email us help@nafmainc.org. Our abundant network of industry professionals will provide you with all the information, tools and advice you need to even the playing field with your lender and win the fight to save your home!
“Obama’s plan is a joke,” wrote Jean in Michigan. “The banks are a joke… fax, fax, fax, call, call, call and no response for months. Even Washington representatives can’t get an answer or help, what a sham!!!!”
“I have a Fannie Mae loan through Bank of America and have been fighting with Bank of America since May to work with me. They continue to indicate that I do not qualify during this phase, but yet Fannie Mae says I do. BofA has given me every possible roadblock and excuse. They are definitely doing this intentionally.”
“Litton Loan serving is the worst. I did an informal email survey received responses from 123 people who applied for Load Modification…NOT ONE got the Modification. All were lied to and dragged along for weeks until finally they were told they did not qualify. Who can stop this madness?”
So you call your lender, spend 15 minutes on hold, 10 minutes verifying your identity to Sergio in India and another 20 minutes explaining why you need a loan modification, only to be told you're calling the wrong department. For some reason the lender is lacking the cutting edge technology required to transfer the call which means you'll have to hang up and start the process all over again...splendid.
After being treated like a number (more specifically number 2) and wasting another hour of your life on the phone speaking to a long line of people who couldn't care less about you or your home, you're told to complete a financial worksheet, send in your income documents and "wait". Wait for what? How long does it take to determine your eligibility for a modification? It took the lender less than 20 minutes to approve the loan, yet its taking them no less than 20 days to approve a work out plan. Reality sets in as you realize the banks already received their stimulous package and simply couldnt care less about you or your home. That being said, you decide to give the same bank that set you up for failure once before the benefit of the doubt. After all, whats the worst that can happen?
So you rush to gather your documents, only to spend the next two days faxing and refaxing until the lender finally confirms their receipt. According to your lender, the process may take between 30-60 days to complete. FYI: A pending modification does not obligate your lender to stay any active foreclosure proceedings. As one hand dangles a carrot, the other hand may be reaching in your pocket for your house keys!
After a month of sleepless nights haunted with visions of the County Sheriff showing up at your door with a foreclosure notice, your heart sinks as you're told the modification has not been approved (why? because their computer said so) and your only options would be to sell your home, accept a repayment plan or lose it to foreclosure. Now what?
If this sounds like an experience you or someone you care about has had with a lender, please call NAFMA today at (888) 201-8608. You can also email us help@nafmainc.org. Our abundant network of industry professionals will provide you with all the information, tools and advice you need to even the playing field with your lender and win the fight to save your home!
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