About the Author
Moe Bedard is a leading expert and trusted authority in regards to loan workouts and loan modifications. Moe is the founder and President of Loan Safe Solutions, LoanSafe.org and the main contributor to LoanWorkout.org. He has blogged on this subject more than any other person on earth and has personally been involved in over 300 loan workouts and mortgage audits.
Predatory Servicing
PREDATORY SERVICING
American homeowners went from being taken advantage of with the advent of the predatory lending subprime market and now there are being eaten alive by the servicers who service these predatory loans.
Think about it? How can you have a predatory loan and not a predatory servicer? It’s like raising a great white shark to be a KILLER and then have someone adopt that shark and try and domesticate it to make it friendly. That logic just doesn’t jive, does it?
Why is servicing these crappy loans so damn profitable? The crappier the loans the bigger the profits. The more homeowners that do not make payments on time, the more fees these sharks can feed off of. Multiply that by hundreds of thousands of crappy loans and you now have a pretty darn profitable shark trolling business.
Hell, its a lot more profitable for Countrywide to service crappy loans then it is to sell them. Maybe that was all part of the grand scheme in what I have coined as “The Great American Homeowner Swindle”.
Some more shark food for thought:
Why would Bank of America infuse the ailing Countrywide with 2 billion dollars? It’s not because they are a great lender. NO! It’s because Countrywide makes huge profits by servicing loans. Especially subprime delinquent loans and B of A wants a slice of that subprime toxic loan pie.
BANK OF AMERICA IS PLANNING TO BE THE KING OF THE SEA!
Rumors have it that a complete take over is in the works. B of A stands to profit enormously from the misery of American homeowners and servicing non performing loans.
I always look to Wall Street and guys like Mad Money’s Jim Cramer to validate my views. If Wall Street is looking at any of these companies right now as a good investment, then I know there must be a sick reason why.
Jim Cramer:
“But most important, in what looks like sheer genius, in less than a month it can buy Countrywide for what looks to be on the cheap in a business that is about to get great: servicing and issuing mortgages,” Cramer said.
So why is the servicing business about to get GRRRRRREAAAAAT? Hell, it’s great now, it’s only going to get fantastic as more of these predatory loans adjust and they can apply their predatory servicing tactics to really cash in on homeowners who are delinquent.
Cramer- “I believe that the sudden rush to own servicing rights companies shows that there are going to be some big gains in that area, and Countrywide owns it.”
True, Countrywide went from being the biggest predatory lender to the biggest predatory servicer.
“Bank of America will end up being the mortgage king in this country. Deposit king; mortgage king; fee king,” Cramer added.
Need I say more?
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I just got an ad from wamu for a new credit card. what the hell does that signify? 
WAMU failed and they still haven’t dealt with my application. My interest rate jumped and so did my mortgage by ... 
sincitykim - FDIC is handling the workouts for Indymac. You might talk to someone there, they've reported helping over ...
Oct 8th, 2007 at 6:29 pm
Explain why you don’t believe in taking responsibility for one’s own actions…
Dealing drugs might be a “predatory” job, but everyone knows to stay away from them. So why should “debt addicts” be any different???
Let me be clear, I’m not defeending the mortgage brokers, banks, etc., but I don’t see why debt addicts should be execused either. They deserve each other.
Oct 8th, 2007 at 6:39 pm
I’d also add that most are not “homeowners”. If you buy something with someone else’s money… you may be granted temporary control of the asset, but you don’t own it. They do. The foreclosure process rightly speaks to this fact. This is a redo of the 1920’s, but instead of buying stocks with 5% down, people bought (borrowed) homes.
Ignorance isn’t a defense… ask any judge.
Oct 8th, 2007 at 8:10 pm
I love this analogy because I equate what went on over the last 5 or so years to the drug trafficking.
The only difference here, is the drugs these lenders were pedaling were deadly. You had the dealers (lenders and brokers) and the users (homeowners).
The problem is that the people that took the hit of the dealers drugs did not realize that it was in fact (deadly drugs) They didn’t know they would die from these LEGAL drugs. Lenders knew they would eventually die, so essentially it was all premeditated.
So the users who made the big mistake of taking that first hit from the dealers will suffer and they are suffering. But the consequence should be far worse as they are in real life when you commit a crime in premeditation as did the lenders in selling these toxic loans.
They do not deserve each other. Some lenders deserve to be on death row and some homeowners just need to go to a detox clinic.
Oct 8th, 2007 at 8:15 pm
True, but predatory lending is and that is a great defense. Placing someone in a loan they cannot get out of is ‘predatory’. These loans were sold for short term affordability and the understanding that they would be able to finance out of them. They can’t now so these loans were originated on fraudulent terms and promises.
Homeowners are victims, not ignorant.
Oct 8th, 2007 at 11:24 pm
“PREDATORY SERVICING”
I really like that one ! ! !
- Paul
Oct 9th, 2007 at 1:02 am
I thought you’d get a kick out of that one.
Oct 28th, 2007 at 8:56 pm
svirtokilo 70 post
all about svirtokilo and top news
Oct 29th, 2007 at 12:10 am
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Nov 29th, 2007 at 3:44 pm
[...] call it questionable fees, I like to call it predatory servicing. I’ll inform you how you can combat this a little bit further down in this [...]
Nov 29th, 2007 at 4:08 pm
[...] They call it questionable fees, I like to call it predatory servicing. [...]
Dec 11th, 2007 at 3:15 pm
One only need go to MSFraud.org to see how lenders fabricate foreclosures out of thin air to force people into foreclosure. It’s been going on for years.
Dec 29th, 2007 at 8:24 am
At least spell Fremont correctly, I was a good employee and we should have nver gone down!!!!!!!!!!
Jan 4th, 2008 at 11:04 am
[...] to the bsuiness as usual in the mortgage servicing industry. Call it what you like, I call it predatory servicing becasue that’s exactly what it [...]
Feb 13th, 2008 at 4:47 pm
doyjay:
you went down for a reason think about it!!!!!
Feb 13th, 2008 at 5:33 pm
doyjay,
you spelled never wrong.
Mar 26th, 2008 at 12:29 am
What can you tell me about California company Capital Network Funding and their history please and is it customary to do out of state re-fi’s ?
Apr 26th, 2008 at 4:03 pm
Over the past six months, my account has been systematically
forced into delinquency by the predatory servicing practices of
Homecomings Financial. These events are well documented and
plainly indicate a deliberate effort by Homecomings to expedite
the foreclosure of my home. Predatory Lending. CASE IN POINT:
My online account is routinely unavailable- usually on or around
my payment date- which prevents me from using their electronic
system. Billing information is inaccurate or out of date and any
attempt I make to bring my account current is counteracted by
such tactics as delaying or reversing payments, applying them
retroactively to cover those they’ve delayed or reversed and
refusing payments that would cure the default.
Also well documented are my repeated attempts to get assistance
through their fictitious Loss Mitigation process- a calculated series
of roadblocks erected to create a paper trail for the company while
keeping me from recourse by making it appear as if I’m unresponsive
to their contrived outreach efforts. Predatory Lending. CASE IN POINT:
They continually send letters requesting that I call to discuss my
options, schedule meetings or fax information but when I do, I’m
referred to someone who’s on vacation, my call is dropped during
transfer, appointments are no longer available or my fax is never
received.
Their methods are transparent and though I find it unbelievable
that a company would victimize it’s customers so ruthlessly, the
facts speak for themselves. There are hundreds of complaints on
the internet and in the courts from similarly situated individuals
who’s experiences establish a pattern of abuse by Homecomings
that insures the company’s profits at the expense of the borrower.
I have filed complaints with the FTC, the Attorney General, the BBB
and various other regulatory agencies and I urge anyone who has,
or suspects they have been victimized by this company to follow suit.
I don’t know if we can save our homes but perhaps we can prevent
further harm by demanding that Homecomings take responsibility for
their devastating actions and address the situation appropriately.
Apr 29th, 2008 at 5:26 pm
So, is anyone doing anything about this? Has anyone dealt with First Horizon on this?
May 9th, 2008 at 10:25 am
[...] everyone say, “predatory servicing?” Welcome to mortgage servicing [...]
May 14th, 2008 at 4:00 pm
[...] everyone say, “predatory servicing?” Welcome to mortgage servicing [...]