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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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.
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.
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.
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.
“PREDATORY SERVICING”
I really like that one ! ! !
- Paul
I thought you’d get a kick out of that one.
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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.
At least spell Fremont correctly, I was a good employee and we should have nver gone down!!!!!!!!!!
doyjay:
you went down for a reason think about it!!!!!
doyjay,
you spelled never wrong.
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 ?
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.
So, is anyone doing anything about this? Has anyone dealt with First Horizon on this?
I was told by an FHA counselor, to contact the FTC about my Mortgage Servicer “America’s Servicing Company” or “ASC”. The FTC personnel told me to file a COMPLAINT, because everything I told them about my servicer sounded like fraud. He said if the FTC gets enough complaints about a company, they will investigate it. So everyone… start filing complaints to the FTC!!! You can get their phone number on the website or by calling (800) 555-1212.
I’ve noticed the analogy between drug addicts and debt addicts. It’s true, a borrower does not own the home outright. You’d also have to agree that most borrowers are taxpayers and as taxpayers now own stock in companies like Wells Fargo, AKA America’s Servicing Company. In my humble opinion, just because someone buys a home doesn’t make them a debt addict, that’s like saying someone who drinks an occaisonal beer is an alchoholic. Sure, some folks who drink are alchoholic, but most are not. I was one in the beginning of the great government bail out who told it on the mountain, “This Bail-Out or TARP is going to enable banks to foreclose on everything under the sun”. See, a bank or investor usually buys mortgage insurance to protect themselves from fraud or other circumstances where they may lose money on a mortgage investment. And who do you think is the largest mortgage insurer in the nation, if you said AIG, you’d be right. Now the middle class can’t get a loan, losing jobs and homes, can’t get the same protection that the banks are getting with taxpayer money. As long as the taxpayers are bailing out the investors, why would they change their habits?