Missing here is any understanding of who controls the timing of a so-called foreclosure wave. Banks do the foreclosing, after all, and it’s really up to them whether or not to put inventory on the market or to foreclose at all. And in both cases, they haven’t moved forward for very specific reasons.
|By: David Dayen Tuesday November 20, 2012 3:35 pm|
The Justice Department has issued their formal press release in the plea arrangement with Lorraine Brown, the former President of fraudulent foreclosure document processor DocX, a division of LPS. Brown pleaded guilty to wire and mail fraud and faces five years in prison and up to $250,000 in fines, from what DoJ describes as “a six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States.” She also acknowledged lying to the FBI and other federal regulators investigating the scheme.
Separately, the state of Missouri, which had previously indicted Brown in the same scheme, announced their own plea agreement with her on fraudulent and forged document filings in his state.
|By: Cynthia Kouril Tuesday November 20, 2012 3:15 pm|
The Founder of DocX, which later changed its name to LPS, has pleaded GUILTY in US District Court for the Middle District of Florida. In the “Factual Basis” document attached to her Plea Agreement, Lorraine Borwn, the founder of DocX, LLC, admits that the documents produced by these companies from the period 2003-2009 were forgeries.
|By: David Dayen Monday November 19, 2012 7:52 am|
The second report from the Office of Mortgage Settlement Oversight has arrived, and it shows a continuation of one trend, tempered by the first batch of consumer relief in the form of actual principal reductions.
|By: David Dayen Monday October 22, 2012 9:00 am|
The Consumer Financial Protection Bureau released an eye-opening report on student lending late last week that got me thinking about a simple truth I think I had overlooked previously. I’ve documented for well over a year the extent to which mortgage servicers make their profits almost entirely through ripping off their customers, adding on unnecessary fees, and basically using opaque processes to skim money off the top.
|By: David Dayen Wednesday October 3, 2012 8:55 am|
Today is the first day that the servicing standards for the foreclosure fraud settlement go into effect.
|By: David Dayen Friday September 28, 2012 6:00 am|
A number of states have announced that they are sending out claim forms to foreclosure victims who are eligible for a one-time cash payment under the foreclosure fraud settlement. $1.5 billion has been earmarked for roughly 750,000 homeowners (depending on takeup) who were foreclosed upon between Jan. 1, 2008, and Dec. 31, 2011, by one of the Big Five servicers in the settlement (Bank of America, JPMorgan Chase, Wells Fargo, Citi and GMAC/Ally). The plan is to pay out the claims in mid-2013.
If this works and they get the target of 750,000 responses, then the payout will amount to $2,000 “sorry your home was stolen” checks.
|By: David Dayen Tuesday September 11, 2012 9:30 am|
Let me roll back to that story in the Inland Empire of California, where Wells Fargo broke into and destroyed the wrong house, one that didn’t even have a mortgage. Here’s a funny story: this was not the first time Wells’ contractors broke into that house. It was the second.
|By: David Dayen Monday September 3, 2012 10:23 am|
While housing analysts revel in numbers about home prices and construction starts, I have been trying to focus on the realities of an unhealthy market, with hedge fund house-flippers and shadow inventory driving the so-called “recovery” more than anything fundamental. Gretchen Morgenson takes up the other aspect of this, the fact that the legal wrangling over faulty foreclosures and broken processes never actually ended
|By: David Dayen Friday August 10, 2012 5:45 pm|
It is a sad day in America when large banks will be prevented from making as much money as before. But this would greatly benefit the consumer. Mortgage servicing, by design, can only make big profits with a bare-bones staff that doesn’t attend to the needs of the customer, and with the ability to rip off those customers with illegal fees and charges. Wells Fargo admitted in court that their servicing arm routinely pays off fees and interest before paying down principal in any payment given to them, which violates what is supposed to be the standard practice. And that’s just one example of systematic servicer abuse.