This is Bruce Rose, CEO of Carrington Mortgage Services and listed with NACA as one of their ten most wanted financial predators. Now, Ohio’s top cop wants them to pay for their mortgage disservice!
Our state’s attorney generals and the FTC have been the only government agencies that are actually doing something effective to help struggling Americans who are losing their homes. From shutting down loan modification scam companies to now suing unhelpful mortgage servicers, they are sending a clear messsage to anyone involved in the mortgage industry, you better abide by state laws and your help better be genuine.
Yesterday I blogged the press release from the Ohio AG stating that they were suing Carrington Mortgage Services for failing to properly assist struggling homeowners with loan modifications.
Since 2007 I have stated that simple state laws like unfair and deceptive businesses practices act etc can be effectively leveraged to file lawsuits against these abusive mortgage servicers.
Here is a blog post from December 2008.
Mortgage Disservice: Do Mortgage Servicers Have the Authority to Modify Investor Owned Mortgages?
Attorney General Alert: We at LoanWorkout.org “believe” that your recent unfair and deceptive predatory lending settlements can be parlayed and effectively used against the incredibly unfair and deceitfully deceptive mortgage servicing industry.
A mortgage servicer’s fiduciary duty is “only” to the investor for which they are servicing the pool of mortgages for and not the homeowner. Every loss mitigation technique they perform, such as a loan modification, repayment plan and or short sale needs to be in the “best interests” of the trust and these instructions for servicing a pool of mortgage loans are outlined in what is called a ‘Pooling and Serving Agreement’ or PSA.
A mortgage pooling and servicing agreement describes how pooled loans will be serviced and dictates how proceeds and losses will be distributed to investors.
From the American Securitization Forum (ASF):
Most subprime transactions authorize the servicer to modify loans that are either in default, or for which default is either imminent or reasonably foreseeable. Generally, permitted modifications include changing the interest rate on a prospective basis, forgiving principal,capitalizing arrearages and extending the maturity date.
The “reasonably foreseeable” default standard derives from and is permitted by the restrictions imposed by the REMIC sections of the Internal Revenue Code of 1986 (the “REMIC Code”) on modifying loans included in a securitization for which a REMIC election is made. Most market participants interpret the two standards of future default – imminent and reasonably foreseeable – to be substantially the same
Carrington calls Ohio mortgage lawsuit “meritless”
“We regret that the Ohio Attorney General has declined our offer to continue to work constructively to help homeowners and has instead chosen to pursue meritless litigation against the company,” Santa Ana, California-based Carrington said in an e-mailed statement.
“Carrington remains single-mindedly committed to helping homeowners throughout this difficult economic cycle and has modified loans for approximately half of its customers, the vast majority of which are now back on track and remain in their homes,” it added.
With the mustache, he looks like the same creepy little guy that originated my loan. Everyone knows the bulk of the modification scams comes from or has a large connection to the small broker financial services. No one decides to go from pizza delivery to modification scam artist over night.
carrington mortgages is a company that needs to be sumined into a senate hearing the same way Robert Kennedy did with Hoffa. these people are taking us through the ringer. Telling my wife and I that the only way we could get modified is we both must be employed I have a illness that I will be under doctors care for the rest of my life, We were told that in-order for us to quailfy for loan mod that I had to move out our home THIS IS THE NEW FEDERAL LAW’ I MOVED OUT AND THEN FOUND OUT LATER THAT THIS WAS A LIE EXERCISING FEDERAL LAWS THAT DO NOT EXSIST ON US. Now thier trying to change the terms of our modification and charging us an outstanding amount sending our mod up 500.00 dollars and adding 10 yrs of mortgage payments thers so mch more that they’ve done to us please contact me at if this happening to you as well or other deceptive manners.
I found this page looking for info on the company. They are holding a property that I’m interested in purchasing for $125k over market value. There’s something fishy with the tax records. Looking for leverage. Looking for leverage.
With all the horrific stories we hear and read about lenders going back on their word to modify loans of responsible homeowners, I’m not sure how our trial loan modification with Carrington will turn out. We are on our 3rd and last trial mod payment and we will soon find out if they are true to their word. What is disconcerting is that Carrington refuses to send us any documentation regarding the loan modification. They insist that we have to wait until the end of the 3 month trial period. In other words, we are still not out of the woods.
Even with losing half of our income last year, we were never delinquent with our loan payments. Fortunately, our home still has equity and there’s nothing more we want than to continue to live in it. Carrington refused to work with us so we went through a lawyer ( $2600 fee) just to nudge Carrington to offer a trial loan modification to us. However, even the lawyer we used is now being sued by other homeowners. So if Carrington withdraws their offer to us, we are on our own once again. It will be very devastating for our family.
Carrington has been a nightmare for me and my family for the past three years. They have been unwilling to agree to an affordable modification. Our loan adjusted causing the payment to increase my 600, they offered to modify it to a fixed rate but with the same adjustment. How crazy is that, we’ve been struggling to pay with this increased amount until we had to choose between paying other bills that began to surmount. Carrington does not care if we lose our home, it doesnt effect their bottom line. We attended a naca workshop and are hoping that they will be able to help us. Ive seen and heard great things about naca.
Cali: Your post caught my attention because I was scheduled for a NACA workshop this weekend, with high hopes of remodifying my loan with Carrington. After reading the NACA website, I noticed that Bruce Rose, CEO of Carrington is on their “Predator” list. It is now my understanding that NACA can be of no help if your servicer is on that list. You say that you attended a NACA workshop; did NACA indicate that they would be able to help, even though your issue is with Carrington? Any info would be appreciated. TIA
I just did a loan modification with Carrington. Took about 3 weeks total. They dropped our interest rate to 6.00% fixed with no additional fees. We had no problem with them. It was fairly cut and dry…fill out the forms, submit them, and wait for them to get back to us. I’m pleased.
I also just did a loan modification thru Carringtion Mortgage. They asked for bank statements only to decline my wife and me. I waited two months and applied again. This time showing how finances have decreased. They approved the loan modification taking our interest from 6.95% to 5.25%. This worked out to be a $330.00 savings per month. I needed more savings but this was what they offered.
I am in the process of applying for a loan modification with Carrington Mortgage. what is so frustrating is that Carrington suggested we apply for the modification. We received a call from CMS that said our income was too low for modification, asked for updated bank statements then a week later CMS said our income was too high. Our income hasn’t changed, are there any nonprofits out there that help homeowners like ouselves?
My husband and I had a nightmare with carrington in 2008, we had been with homecomings now Gmac, got behind and were told that they could do nothing, were sold to carrignton and sent in everything that they wanted for a modification, we were trying to pay double payments and kept being told it was on hold, This started in Feburary, the week before Thanksgiving we were told that the modification went through and not to send anymore money till it was done, next thing we knew we were sold back to Gmac, we were getting a new modification done by Gmac, got the paperwork a day after it was due back got an extention and got everything back to them, low and behold we were sold back to carrington, aparently the $1000. we sent was applied to the loan balance, and we are told that the paper work that was returned to close the modification is no good now that it is with carrington and we have to do another modification with them. I am really frustrated and feel that we will be on another rollercoaster.
I am herequesting an extension in making m payment before my account goes in foreclosuere status, I would like to have the pay off amount for my account. Please fax information to 954 530 7593 and you can reach me at 954-257-4713.
Thanks a million for your corporation as my property and making my payment means a lot to me.
I needed desperately to modify our home loan with Carrington. They modified our loan, but the mortgage only dropped $150. Plus the fees were put back into the loan. It’s the worse modification ever! So, it was only a temporary fix until we were unable to pay our mortgage any longer… We are now trying to short sale our home.. another night mare with Carrington! Too bad because if our loan modification was better, we would have been willing to stay in our home and ride out this storm.
We have been trying for months and months to get a loan modification with Carrington Mortgage. It all started last year we were with Flagstar asked them for a loan modification due to my husbands lack of work were told because we weren’t behind they could do nothing. They sold us to CMS which in turn has had us submit countless paperwork to them, to the end of they could do nothing because it was Flagstar it has been a back and forth for months, on Dec. 22, 2009 I received a call, CMS said that we were prequalified for a modification, here we are in March and still nothing.. we want to keep our house (it has been in my husband’s family for 50 years) does anyone have any suggestions or know where we can turn. I feel like they are just toying with our lives. There has to be something that can be done.
I never said they were just fine. They are being horrible to us and NOT HELPING AT ALL
LOOKING FOR A POSTION AS Home Retention Specialist PLEASE CONTACT ME AT 714-499-5198 THANK YOU
We are in the process of going into mediation (with a lawyer) after had a predatory lending investigation done. Funny, 8 papers are missing and Carrington is past the due date – 60 business days). The final report of the investigation leads everyone to believe that our Carrington loan was “even more predatory than we thought.” They claim they try to help and modify? Well ha! They modified us once, and it was $90 less a month – however, it went up $600 in a year or two. They are pathetic and don’t care who they throw in the street. I assume we’ll end up in court because now we will only pay what WE can afford, not what they say we can afford – and until they take off all the extras, we pay nothing and save it for court costs. They LIED when they sold us this mortgage! And they just keep on lying…
they have not helped me at all . they dont return phone calls at all. They call me leave a voice mail I will call them and all i get is voice mail I leave my info never hear from them. How does one get anything resolved when they wont talk to me.
I also faxed them a written offer to sale my home and they never responded . I have sent the same paperwork over and over and never hear anything from them at all .
Sub prime loans aka “Liar loans” are loans without underwriting criteria…created record fictional profits. Mortgage fraud leads to servicing fraud…Ameriquest…B of A and Countrywide. Carrington serviced the fraudulent loans for sub prime New Century,Fremont and some others. Now they own whats left and are foreclosing on the Liar loans, selling them through their own Real Estate Co called Atlantic and Pacific, using their Lending arm “Carrington” their escrow Atlantic Pacific Escrow. They do not modify, they foreclose, create profits from the victims of the FED (Greenspan, Bernanke), Treasury – Paulson, Geitner – wall street Bushbama controlled fraud called Liar loans. No one is prosecuted. Carrington is representative of the white collar thieves…of our corporate dictatorship. A marriage of deceit wall street and politicians!