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Tag Archives: mortgage fraud

Arizona Nevada Sue Bank of America For Fraud

Seems that Bank of America has been defrauding customers (what else is new?) in a whole new way. The current scam involves getting delinquent customers to continue to pay with promises that their payments will forestall foreclosure…

And then foreclosing anyway.

B of A even did “Press Releases” –

Bank of America Helps 125,000 Homeowners With “Making Home Affordable” Loan Modifications

Starting November 1st, Bank of America’s will have surpassed its goal of providing 125,000 trial loan modifications through the government’s Home Affordable Modification Program (HAMP).  These modifications, part of the Making Home Affordable Program, aim to resolve loan issues by offering an incentive for banks to accept modifications to a loans terms, rather than simply foreclosing on the home.

This is the same bank which for years ran the scam of cascading customer checking accounts to maximize the overdraft penalties, and who set up a late payment structure on their credit cards which taxed consumers $35 a month regardless of when they made the payment.

So it really isn’t a surprise that this is what they really did…

Two States Sue Bank of America Over Mortgages

The attorneys general of Arizona and Nevada on Friday filed a lawsuit against Bank of America, accusing it of engaging in “widespread fraud” by misleading customers with “false promises” about their eligibility for modifications on their home mortgages.

In withering complaints filed in state courts in both states, the attorneys general accused Bank of America of assuring customers that they would not be foreclosed upon while they were seeking loan modifications, only to proceed with foreclosures anyway; of falsely telling customers that they must be in default to obtain a modification; of promising that the modifications would be made permanent if they completed a trial period, only to renege on the deal; and of conjuring up bogus reasons for denying modifications.

“Bank of America’s callous disregard for providing timely, correct information to people in their time of need is truly egregious,” Catherine Cortez Masto, the attorney general of Nevada said in a statement.

Many Nevada homeowners continued “to make mortgage payments they could not afford, running through their savings, their retirement funds or their children’s education funds.”

The lawsuit comes as top prosecutors nationwide are investigating whether the paperwork that banks used to support foreclosure cases often was egregiously sloppy, sometimes relying on robo-signers — employees who signed hundreds of documents a day — to sign sworn court documents.

Tom Miller, Iowa’s attorney general who is heading the multistate investigation into foreclosure fraud allegations, said the two states’ lawsuits would not dilute his inquiry. “It is clear that attorneys general in Arizona and Nevada believe that it is in their two states’ best interests to pursue coordinated civil cases against Bank of America,” he said in a statement.

A Bank of America spokesman, Dan Frahm, said bank officials were disappointed that the lawsuits were filed “at this time,” given the bank’s cooperation with the multistate investigation.

Mr. Frahm disputed the allegations in the lawsuit, saying the bank was committed to making sure no property was foreclosed until the customer had a chance to modify the loan or, if ineligible for a modification, to pursue another solution.

He said the attorneys general didn’t acknowledge the many improvements the bank had made, like providing a single point of contact for customers who have started the modification process and increasing staff to support “homeownership retention initiatives.”

Arizona and Nevada are among the states hardest hit by the housing downturn, and the state attorneys general said their lawsuits were prompted by hundreds of complaints by consumers who sought modifications of their mortgages.

The complaints in the lawsuit in many ways echoed problems encountered by homeowners nationwide who have tried with little luck to obtain mortgage modifications from banks, often through a federal program set up for that purpose. Thousands of homeowners complain that banks repeatedly lose their documents, fail to return calls or foreclose when a homeowner believes he or she is still negotiating a modification.

Indeed, according to the lawsuits, Bank of America’s efforts were the most anemic of the big banks and were not confined to the Western states but rather “reflect a pervasive nationwide pattern and practice of conduct.” The lawsuit noted that Bank of America ranked last in “virtually every homeowner experience metric” monitored in a monthly report on the federal home loan modification program.

Ms. Masto of Nevada said her office’s findings were confirmed by interviews with consumers, former employees, third parties and documents. Former employees said that Bank of America’s modification staff was “chaotic, understaffed and not oriented to customers,” according to a news release. One former employee said, “The main purpose of the training is to teach us how to get customers off the phone in less than 10 minutes.”

Another employee said, “When checking on a borrower’s status, I often found that the modification request had not been dealt with or was so old that the request had become inactive. Yet, I was instructed to inform borrowers that they were ‘active and in status.’ One time I complained to a supervisor that I felt I always was lying to borrowers.”

 

 
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Posted by on December 18, 2010 in Great American Rip-Off

 

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This is a RAID!

You know you are having a bad day when a group of folks dressed like this shows up at your front door!

What is odd about this is…

Why is the FBI announcing beforehand they are going to bust these guys?

Going to be a busy weekend at the International Airline Counter…

F.B.I. Readies for Mortgage Fraud Clampdown

Mortgage fraudsters beware. The F.B.I. is gearing up for a nationwide clampdown in a new effort to slow the kind of lending practices that led to the housing crash of 2008, The Financial Times reported.

Hundreds of people are expected to be arrested in the sweep, which will start as early as next week, The FT said, citing two people with knowledge of the operation. An F.B.I. spokesman declined to comment to the newspaper.

Charges are expected to be leveled over offenses ranging from pushing borrowers to lie about their income on mortgage applications to providing homeowners with false information about foreclosure rescue programs, the newspaper said.

The F.B.I. has set up 23 local mortgage fraud task forces around the United States since October 2008 with the mandate to limit the illegal misstatement, misrepresentation or omission of material facts on mortgage applications.

The FT noted it was mortgage fraud that led to the expansion of the housing bubble and eventually accounted for its catastrophic burst, as loans were handed out to borrowers with unsubstantiated incomes and low credit ratings.

 
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Posted by on June 11, 2010 in News

 

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It Used to Be the Bad Guys Robbed Wells Fargo

On July 21, 1873, Jesse James and the James-Younger Gang robbed their first train in Adair, Iowa, of all places. They managed to derail the Rock Island train, turning the train on its side, killing the engineer and injuring a lot of its passengers. But that wasn’t enough terror for the passengers - the James-Younger Gang, clad in Ku Klux Klan garb, went up and down the length of the overturned train confronting them and demanding their watches and valuables (although some reports say they stole only from the men). They threw it all in bags along with the money from the train’s safe and ended up getting about $3,000.

On July 21, 1873, Jesse James and the James-Younger Gang robbed their first train in Adair, Iowa, of all places. They managed to derail the Rock Island train, turning the train on its side, killing the engineer and injuring a lot of its passengers. But that wasn’t enough terror for the passengers - the James-Younger Gang, clad in Ku Klux Klan garb, went up and down the length of the overturned train confronting them and demanding their watches and valuables (although some reports say they stole only from the men). They threw it all in bags along with the money from the train’s safe and ended up getting about $3,000.

How things changed during the Bushit Hold-up!

Illinois Sues Wells Fargo for Biased Lending

Wells Fargo targeted African-Americans and Latinos for risky, subprime mortgage loans with “reverse redlining” practices, Illinois Attorney General Lisa Madigan says in Cook County Court. The 62-page complaint accuses the bank of a litany of biased and fraudulent practices during the “heyday” of subprime lending.

Madigan says Wells Fargo charged blacks and Latinos much more for mortgages than white borrowers with the same income – and even with lower incomes.

Madigan cites a 2007 story from the “Chicago Reporter” that reported 34 percent of African-American borrowers who earned more than $120,000 received high-cost loans from Wells Fargo, compared to only 22 percent of white borrowers who earned less than $40,000. Read the rest of this entry »

 
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Posted by on August 6, 2009 in American Genocide, The New Jim Crow

 

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The New Jim Crow – Financing, Forclosure, and the Virtual Debtors Prison

Settlement of the United States, as well as a few other places around the world, started with Europe’s rejects. The English in particular were very adept at packing up “criminals”, and shipping them off to the Americas and Australia.

Debtors Prison, York, England

Debtors Prison, York, England

If you are thinking rapists and murderers, the answer is in majority, no. Those folks got hung. The vast majority of “criminals” sent off in ships were debtors in an age before usury laws – people who, for whatever reason couldn’t pay off their debts. Often it was because the moneylenders could charge exorbitant rates, effectively doubling and tripling the debt faster than the victim could possibly afford to pay off the principal.

Sort of like what we have today in the credit card industry. In light of the various protections given the banking and credit industry the last 8 years, such as a rewrite of the bankruptcy laws by Republicans – and a steadfast refusal to address the issues of privacy…

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Posted by on May 14, 2009 in The New Jim Crow

 

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