JPM Whistle: My Boss Told Me, We’re In The Foreclosure — Not Modification — Business
Posted on June 24, 2011 by Neil Garfield
MOST POPULAR ARTICLES
DISCOUNT FOR EARLY BIRD REGISTRATION RUNS OUT ON JUNE 22
CLICK HERE TO REGISTER FOR 2 DAY GARFIELD CONTINUUM CLE SEMINAR
Servicer Payments Keep Mortgages Current and Convert Liability to Unsecured
EDITOR’S COMMENT: MULTIPLE WARNINGS HERE. Nobody on the banking side wants modifications. Nobody actually has the authority. Modifications are admissions that the loan is worth less than what was sold to investors. But more than that, they mean that the servicer will not get a free house, which is what the Courts are allowing across the country when they allow the servicer or some other disinterested third party to submit a “credit bid” lieu of cash at the auction. What they want is foreclosures because this is a land grab — where the servicers and other disinterested third parties are getting something for nothing. By pretending to be a “lender” or successor or creditor they get to buy property with a wave of a wand — where they never loaned, invested or purchased the obligation.Most modification scenarios end up with the borrower being turned down at random for any number of failures that don’t apply. The tricks used — including the famous “we didn’t get your papers, submit them again” — are known to everyone who has ever sought or assisted in modifications. Modification might sound good but it doesn’t turn out that way. They get you to admit you are in default and that the loan is in default — something that mostly is not true because the servicer is still paying on it even after they tell you that you are delinquent or in default.When the servicer does that they are fulfilling a provision in the contract they have with Wall Street entities to make those payments — a term that was never disclosed to borrowers. They are also creating a possible claim against the homeowner — but that isn’t a claim on the mortgage, which is current, courtesy of the servicer making the payments; the claim is for restitution and cannot be achieved through foreclosure because the servicer is not the lender or creditor in THAT transaction. They must bring an unsecured claim that can only be processed judicially.Foreclosures are the servicer’s reward for keeping their mouths shut about the reality of these transactions. They get a free house. They pretend to go through the modification process to make absolutely certain that you go further and further in the default zone, so their fees go to the highest point. Then they hit you with an up front payment requirement, which even if you make it, they still foreclose — because that is the business they are in — stealing houses through fraudulent foreclosures. But that’s not all — there’s more! Since your loan has already been paid off a couple of times, in most instances, every nickle they collect in payments is also free money with nobody to give it to. What a country!
Former JPMorgan Mortgage Servicer: My Boss Told Me, We’re In The Foreclosure — Not Modification — Business
Courtney Comstock | Jun. 20, 2011, 3:19 PM | 2,640 |
 Image: commons.wikimedia.org |
A former employee of Chase’s mortgage servicing company says his job entailed “making borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose.”The former employee, who is identified only as “Jared,” explained his job to Mandelman Matters, which writes:
Jared recalled what his boss had told him during his first week on the job: “We’re in the foreclosure business, not the modification business.”
“Foreclosures are a no lose proposition for servicers… The servicer gets paid more to service a delinquent loan, and they get to tack on extra charges. If the borrower reinstates, which is rare, then the borrower pays the extra fees. If the borrower loses the house, then the investor pays them. Either way, the servicer gets their money.”
“Their whole focus is to foreclose, not to modify. They make borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose. That’s what it seemed like to me, anyway.”
An army official’s father had an experience with the bank that backs up Jared’s claim.
He recently described what the Chase mortgage modification process was like for him, telling Huffington Post:
When he first asked for help in 2008, he had not missed any payments. At the time, his mortgage was being handled by Washington Mutual, a subprime lending specialist Chase purchased in the fall of 2008. Collette said WaMu told him he would only qualify for a loan modification if he missed two of his $1,100 monthly mortgage payments. So he missed the payments. And the bank began trying to foreclose on him.
Jamie Dimon’s unfortunate quote from a few months ago echoes this shocking strategy: “Giving debt relief to people that really need it… that’s what foreclosure is.“
These alleged practices, of course, are a large reason for Foreclosure-gate.
Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor,Mortgage, securities fraud Tagged: | bankruptcy, borrower, countrywide, disclosure,foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee,WEISBAND
14 Responses
Related articles
- The JPMorgan Exec Who Foreclosed On Soldiers Just Got Fired (JPM) (businessinsider.com)
- "Obama Cuts Off JPMorgan, BofA And Wells Fargo From Receiving Millions In Fees From Huge Foreclosure Program (JPM, WFC, BAC)" and related posts (thenewspundit.com)
- Abigail Field Finds Smoking Gun on BofA Securitization Fraud (news.firedoglake.com)
- Foreclosure, loan modification: Banks foreclosing on homeowners while advancing them through loan modifications - latimes.com (policyabcs.wordpress.com)
- Bank Of America Accused Of Obstructing Foreclosure Probe... (tominvestor.wordpress.com)
- Bank Errors Continue to Cause Wrongful Foreclosures (propublica.org)
If one knows that there’s a crime being committed and they go along even for one one day or an hour or a minute, they become accessory to that crime. Many employees on banks that have committed fraud and are still committing fraud know what’s going on, but they stay quiet as to not lose their jobs, etc. Does it make it right or just, not it does not, but they are operating out of fear and selfish need. The banks are hiring desperate young people who are looking to make a buck and who are not having much luck otherwise, and give them what seems to be an important job; so they take it and keep their mouths shot. I have a family member who used to work for Wachovia bank when they took over World Savings and they started asking their employees to lie to the homeowners at closing and if they did not they get fired, so she got herself fired instead of lying, but she’s one of a kind! We all know the truth eventually will come out sooner or later, it would be much better if it was NOW! Shelly, I hope you get better and I hope for all of the homeowners who have been cheated out of their homes, get what’s rightfully theirs back, and I hope the criminal suffer for what they had done not only to the unsuspecting homeowners but to the whole economy as well, take care.
and move it out of review the week i was suppose to be qualified and they didnt lose a fed ex package i sent. i wrote pam bondi fla ag and told them the same thing. actually i also told pam bondi wells fargo turned it all around on me. my file was never compromised and i didnt sent the correct paperwork. i told her i was nurse for 25 years and that she should have some proffesional courtesy that of all people i would not lie about he disposition of my wells fargo information. that as a nurse for 25 years i should have the up most respect in regards to this situation. all pam baondis office was send my letter off to wells fargo. people even though they are not doing anything if your bank gets multiple letters from the OCC and the ag they will know you are fighting and to stay away. more time to let all this shoot to hit the fan harder.
Any consumer complaints regarding this matter will be ignored blessed by Congress.
All national association complaints to any one regarding harm to consumer as individual will be ignored as falling under jurisprudence of OCC!