Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
Mortgage Fraud Blog is co-sponsored by Interthinx the leading provider of fraud services and solutions for the mortgage industry.
On June 20, 2008 California Attorney General Edmund G. Brown Jr. sued Countrywide for engaging in deceptive advertising and unfair competition by pushing homeowners into risky loans for the sole purpose of reselling the mortgages on the secondary market. On or about June 24, 2008, Brown filed an amended lawsuit in Los Angeles Superior Court which reveals twenty new details about the company’s scheme to deceive consumers into taking out dangerous mortgages. The information had been previously withheld from the complaint.
Some of the new information includes the fact that Countrywide‘s wholesale lending officers received higher commissions for selling Pay Option Adjustable Rate Mortgages--loans that entice consumers with a very low initial “teaser” rate--and loans with weak underwriting standards. Countrywide also paid higher commissions for putting borrowers into loans with higher rates and fees than they qualified for based upon credit scores and other factors.
Countrywide ignored factors that it identified as having negative impacts on underwriting including: high debt ratios, low credit scores, and minimal down payments. Company employees regularly overrode warnings from Countrywide‘s computerized underwriting system, known as CLUES, which issued loan analysis reports rating consumer credit, purported ability to repay, and whether a proposed loan complied with underwriting guidelines.
The following examples describe new details about how Countrywide granted exceptions to sound business practices. These examples represent a small percentage of the large number of California residents who are facing foreclosure due to Countrywide‘s dangerous practices:
• A Countrywide loan officer convinced a borrower to take a Pay Option ARM with a 1-month teaser rate and a 3-year prepayment penalty plus a full-draw piggyback home equity line of credit based on the loan officer’s representation that the value of the borrower’s home would continue to rise and he would have no problem refinancing. The borrower’s debt-to-income ratio was 47 percent and credit score was 663. The loan officer offered the loan even though the company’s CLUES report and an underwriter review indicated strong doubts about the borrower’s ability to repay. The loan closed in January 2006, and a Notice of Default issued in June 2007.
• The CLUES report issued for a loan applicant in February 2005 stated that the consumer had too much debt for the loan program and identified other elements of risk including a low credit score. The CLUES report raised doubts about the borrower’s ability to repay the loan but Countrywide approved a 3/27 adjustable rate mortgage with a 3-year prepayment penalty, to an 85-year old disabled veteran with a credit score of 509 score and an debt-to-income ratio of nearly 60 percent. The loan closed in February 2005, and a Notice of Default issued in July 2005.
• The CLUES report for a proposed loan identified multiple risks that created doubts about the borrower’s ability to make the payments, including the fact that a borrower had an open collection account. In January 2006, however, Countrywide granted exceptions for these risks and approved a reduced documentation Pay Option Adjustable Rate Mortgage loan for $352,000 with a 3-month teaser rate and a 3-year prepayment penalty, as well as a Piggyback home equity line of credit for $22,000. The loan closed in January 2006, and a Notice of Default issued in October 2006.
Many borrowers who obtained Pay Option and Hybrid ARMs did not understand that their initial monthly payment would at some point “explode,” that their initial interest rate would increase and become adjustable, or that the principal amount of their loans could actually increase. Countrywide received numerous complaints regarding these practices from borrowers, including over 3,000 complaints per year handled by the Office of the President between January 2005 and August 2007.
Countrywide gave branch managers commissions or bonuses based on the net profits and loan volume generated by each branching, thereby creating intense pressure to sell as many loans as possible, as quickly as possible, at the highest prices possible. Branch managers were rewarded for meeting production goals set by corporate management, increasing the number of loans sold per loan officer, and reducing the time periods between the loan application stage and funding--or penalized for failing to do so.
The amended lawsuit also contains updated data about Countrywide‘s staggering foreclosure rates. As of April this year, 21.11% of the mortgages owned by Countrywide Home Loans were in some stage of delinquency or foreclosure, including 47.97% of originated non-prime loans, and 21.23% of Pay Option ARMs. In January and March, 2008, Countrywide recorded 3,175 notices of default in Alameda, Fresno, Riverside, and San Diego counties alone, representing an aggregate total of delinquent principal and interest of more than $917 million.
“These shocking new details provide further evidence of Countrywide’s dangerous lending practices, which included ignoring borrowers’ low credit scores and rewarding employees for selling risky loans,” Attorney General Brown said. “In one case the company approved an adjustable rate mortgage to an 85-year-old disabled veteran with such a low credit score and high debt that he defaulted in less than six months.”
As an appraiser I can tell you that Countrywide/Landsafe asked us not to mention additions, not mention problems with the dwelling, use non comparable sales etc. CW and Landsafe pressured us to ‘inflate’ values. When we resisted we were kicked off their list as ‘they had appraisers who would hit their values.’ Glad to see them go, hopefully we can clean up this mess.
Posted by on 07/18 at 12:36 PM
Rachel it has been a whils since I have blogged on your site. it is good to see that you are still keeping us all notified about the recent developments of the industry.
Posted by on 07/18 at 07:54 PM
Rachel, I always enjoy keeping up with the origination side fraud you so doggedly report on.
I would like to point out that there are nuances to the scheme that may have even broader implications, particularly those where lenders like Countrywide ‘bought’ the credit scores they were destined to use.
To believe the credit reporting agencies weren’t tuning their scoring products to their customer’s needs is absurd. Their data is so utterly contaminated that they can pretty much make up a score at will without having to worry about making it reflect risk reality - in either direction.
If we relied on such nonsensical data to do something important like air traffic control no one would dare fly an airplane anywhere, much less take people on board for money.
As an appraiser I can sympathize with you. when we kill deals for the lenders we can expect to be off the list.
the solution to the problem of home ownership and affordability: let the prices drop to where people can afford them. take the commission out of selling a house to live in so the realtor and loan officer can work for a “fair professional fee for a service”, when you take the commissions out of the equasion you can keep prices down. this is not to say that commissions can’t be charged for other property types,. keep the investors out of our houses and let the people live.
appraisers are a non-biased group that has no interest in the price being high or low. the homeowner wants it as low as possible. the commission driven, greedy brokers pushed up prices and investments in real estate became the way to move up the economic ladder, the only trouble is there is no way to get down without falling.......
Deborah L. Smith, MAI
Posted by on 07/22 at 08:28 PM
Deborah Smith, You are right on with your thoughts. Typically, new homes sales agents have a flat fee commission. There commission has no regard for the price of the property just the service they provide. Take the escalting commission out of the mix for real estate agents and lenders and you take most of the temptation for fraud away. Simple common sense.
Posted by on 07/23 at 04:46 AM
I am a bank reviewer, but had a good history with LandSafe Appraisal forf several years. Never had a call from a loan officer or reviewer with an attempt to influence value (appraisals were for Countrywide). Protecting the valuation process thru more regulation to brokers, Realtors and lenders will help get valuation to unbiased analysis and opinions of value.
Posted by on 07/23 at 05:30 AM
The only way mortgage fraud will stop, Loans or Appraisals etc.... Is to have a outside party either managed or ran by the local goverment “city” that will not profit from any such deal to ask the home owners questions per phone or in person to see if they understand each number and detail, and this would notify the goverment if the Loan officers or brokers are teach or describing the loan to their clients and also a review of the loan just like the banks do but by someone who is not paid by the loan nor can they except flowers or gifts just like police officers. If you let money motivation control money choices your going to end up here every time. Home owners thought they could get rich, and they were over extended in the pursuit of the home lotto ticket. The banks played the biggest rol in this mess, They created the stated income and no doc loans, No money down or 50-60 % debt ratios come on get real the banks saw the money, created the programs and now because of Long beach, and Acrredited Loan officers are going to jail...I have hundreds of advertisements that now I see people going to jail for save from country wide, Wamu, tons of banks and lenders. No money down, 580 fico, stated income....come on what did they think would happen, now Loan officers are taking the hit. Granted yes some did do illegal activities but come on going to jail for stated income.......Please banks would tell me we don’t care as long as it falls in the guidelines of income for the position they hold...they did not say hey you will go to jail in 5 years for a program we created......Each city needs to take over the review of each resedential loan not commercial, but each home loan and yes it will slow down the process by 3 months but you know what how slow is it now. I have tons to say if anyone has questions or needs advice I already designed a program for California and the Citys to set up a homebuyers course of action if they want a home. This will stop fraud, stop people taking advantage of bad to poor to know english speakers, to people who shouldnt qaulify, help regulate housing tax and scams.... Sorry spelling is so bad im on my mobile phone.
Posted by on 08/21 at 09:36 AM
Oh and P.S who thought it was a good idea to sell a $400,000 or $500,000 to a jack in the box worker, come on get real. The system was screwed up from the top up....
Loan officers were making $20-30-50 thousand a month and banks said hey we got a new program out called gift back. now I see people going to jail for Gift Back programs when Acreddited Home loans marketed such a program. I did one and it was sent to me via fax I called the rep and they explained it to me....And now I see tons of prosecutions for this....Why are some loan officers getting in trouble lets go back to the banks and managers or Mortgage lenders who designed the programs and go after the Generals. I say that the banks marketed the program, the goverment regulated the program and to cover tracks now no goverment official has said I made a mistake, and nobank ceo to managemnt said we designed this with money in mind????? Why not because when they sold a house to 18yr old kids whith a cell phone bill and one credit card and a $3000 auto loan who made $35,000 a year do you think that could be a problem. I was in the business for a month and no one ever explained to me about mortgages, I sold houses and loans before I bought any, come on stated income loans were approved by the bank, gift back programs, approved and designed by the bank, now people are in serious trouble because of bank programs and instead of talking to the loan officer and getting to the rot of the matter they have cops some dirty, some biased, some legit that don’t NO anything about loans who call themselves experts and started prosecuting normal everyday people for loans that were designed and approved by the banks. Now these loan officers have to wait to go to court and if they were smart kept names and phone numbers and documents from these bank detailing the programs they are all in trouble for. How can you save a country or it’s people by stepping on those who did a job they were told to do and then letting the banks go. I am not saying hey go after the banks but how much more is all this prosecution costing and has any one asked the Department of Real Estate why to tell someone how to invest a $10,000 stock account you have to have a series 7 and take some of the most rigorous tests out there but to do loans that change dollar amounts no less then an average of $50,000 all the way up to millions you have to take some courses you complete in 5 hours and you get a RE license and if you work for a bank you can walk in and sell loans off the street.????????
Posted by on 08/21 at 09:56 AM
Re: Noah
Can you please give some basis for your contention that loan officers are being prosecuted for merely doing their job? Specific examples, please.
Posted by on 08/23 at 11:43 AM
It’s really good informatic Artical. Thanks
Posted by on 09/14 at 04:18 AM
Countrywide charged us a $485 appraisal fee then turned us down on refinancing and refuses to refund this amount. My fault for giving the original loan specialist my credit card info for billing. At that point in the 2 month long process it wasn’t a question of whether they’d approve it, but only on what terms, interest etc. I told him we also have a advertisement-type letter from Countrywide offering to waive the credit report/appraisal fee, with a “Preferred Customer #” to use for reference. The original loan specialist no longer works there, subsequestly we were bumped to 3 other people. The last one I’ve been dealing with denies all responcibility, despite an email from her earlier on saying “this amount will be corrected”. We’ve been with Countrywide 6 years, never late on a payment. We’re switching to Fairway Mortgage, they took 5 days to approve us and we’re dealing with the same human being who always promptly returns our calls/emails. Had Countrywide disclosed up front that this appraisal fee was non-refundable I certainly would’ve reconsidered. Live and learn.
Posted by on 12/04 at 05:49 AM
Countrywide has prolonged the process of getting PMI deleted for me for six weeks now. I inquired on Feb 18 th 09- they sent me two letters. One on Feb 25th and one on Feb 27th. The one for the 25th, I received at the beginning of March. It said I needed to have a loan to value of 75 percent and I would have to pay $415 for an appraisal to get PMI dropped. I called them and they said whoops, you only require an 80 percent loan to value and a certificate of value costing $130. They sent me a letter dated on the 27th of Feb stating this much. The letter told me to send the $130 to a group called Valuation Services and that they would schedule the COV for me. Well, it turns out that Valuation Services was not the proper organization to address my cashier’s check to. Land Safe received my cashier’s check on March 16th 2009 and sent it back to my bank. Land Safe did not call me and tell me anything-even though I had enclosed all of my contact numbers. They sent it to my bank, even though they had my address. My bank called me one afternoon and informed me that a financial instrument I had purchased was returned--THIS is how I found out that the process was not moving forward. I called Countrywide and asked them what was going on? Of course they did not even know who Valuation Services is. They verified that my letter said address the check to Valuation Services and did not know who they were. Countrywide then gave me a number to Land Safe to make a credit card payment directly to Land Safe and get the process moving. It took me two days to get in contact with someone at Land Safe. It was the 26th of March 2009 and they accepted my payment and a guy came and took pictures of my condo on the 28th of March. The COV was submitted back to Countrywide on the 30th of March 2009. I called them on the 31st of March and they said that they had my COV submitted but had not looked at it. Countrywide told me to call back in one or two business days. I called them back today and Countrywide tried to tell me that they still had not yet reviewed my Certificate of Value. I said no way! They have delayed me and distracted me for too long on this!! Then I spoke with a manager-after the first rep transfered me to some guy named Rodger’s voicemail (I called back). The manager then informed me that this process takes between one or two months. I had not heard this before-infact all of the other agents had said that this was a really straight forward process. The manager I spoke with today claimed that “the investor” will then review my submission and make a determination. So-basicly, I have been working to get this process done, only now to find out that it is not straight forward and after all this work, that I will NOW receive “consideration” from their INVESTOR! I have documented all of this and I am sending a draft of names and dates as well as interactions to my congressman, REP. Doug Lamborn. If anyone reads this and finds they are dealing with the same misdirection and deception, PLEASE SPEAK UP and DO NOT ALLOW this organization to continue doing “business” this way. My issue is still unresolved. IF Countrywide resolves it, I am still sending a letter to my congressman. I do not interact financially with many organizations. When I do engage in a financial relationship with an organization and this kind of scenario plays out-I will not let it stand and neither should you. Countrywide has not used any good faith in resolving the issues that they have initiated, in fact, they have behaved deceitfully in almost every interaction I have had with them. Do not allow this organization to push you around. Be professional with them at all times. Write your congressperson to let them know. Best of luck and keep your chin up.
Posted by on 04/02 at 05:23 AM
Ok lets not just talk about country wide lets go to the seed of the problem, if we are going to correct the issues then we must fix the
problem at the source.
Your mad at countrywide well they are a branch of the tree.
We as americans are sold on an idea that works for a select few, rather it’s a budget plan, or a reason why your loans are shuffled
or why you were sold on a loan structure on false pretenses by your goverment,
or a District Attorneys office who thinks they will strike at the heart of an issue when they are only
blind to the facts mis led in their own corrupt procedures and can not even see the truth when it is in front of them.
So here we go…
We are giving billions of dollars to Automakers yet they sell you a car for $50k and in 3 years it is worth $20k.
They used to be 80% american made now they are put together here and made 80% out of country so 80% of the jobs and revenue
are going to out sourced countrys
yet american tax dollars are paying to fund american CEO’s mistakes, yet this is to save the country, and yes they will tell
you how many jobs will be saved by doing this but will they?
How about if we require the Auto makers with in 10 years to have 80% of every vehicle made, and parts made, here in america to
have factorys shut down in other countrys and bring the work back to america,
That is stimulating the country, that brings jobs, dreams, and income, when ceos are making millions a years and they have 50 top
level executives
making millions and yet our childrens futures are being ripped away to pad the pockets of a few and
to pick up the mess of a few we are dumb and blind and even our new president needs to wake up....
How can we fix a economy by duck taping it, I say let the auto industry fall if they dont want to fall, then bring the jobs home and
make a qaulity product like the old days
and lets regulate the car lending industry also...people are still paying 16% on a $30,000 loan....Ya america home of the free....
Posted by on 04/02 at 09:36 AM
Ok lets talk about credit cards!!!!!!!!
WHo is watching out for Americans! not the big credit card companys.....Come on if you miss a payment on one card your other cards
go from 8% to 16%..........Life is hard but when you have legal means of Loan sharking that in essence don’t beat you up or break a finger
but they cost you an extra $400 a month in payments because of the fine lines of 4 pages of print that if you did try to read you couldnt understand…
come on this is America!
America is free, but to live here is not, you must pay and have no one watch your back,
you must fight against every turn in your life, when we use to be the land of opurtunity now we are the opurtunity for corporations
if the Gov wants to regulate then go across the spectrum...health care!!!!! come on Obama.....Really, my grandma died
with $700 a month in medication bills.....How is this the land of get sick get broke no one is here for you…
we take care of our neighbors and we take care of our sick,
and we shelter our young, but we dont anymore, as my heart crys out for the old america, well not the old racisit america but we
will get to that..
How can we place the sick in such sad dirty living conditions, where does it say that people who have worked
in this country and paid taxes should suffer because they are now weak......when did america only take care of those who can supply money
We will always have homeless, and drug addicts as long as we spend are money on foriegn soil instead of helping those
here....we feel bad for the poor and sick in other countrys but unless we help our own first we will no longer be able to help the rest of the world
and that is the truth.....
we must turn all of our attention, to our poor and sick, we must educate are children, we must require education of any one
wanting a home, and restrict the corporations slick wording, and limit the profit and avalability in all financial institutions and process.
So MORTGAGES!!
goverment required banks to loosen the guidelines on loans, Pres Bush stated this, now home owners saw this,
hey my neighbor bought a house and sold it and made $100,000 in a year I want that to.....Yes they may have saw the
lotto ticket and went for it and yes stupidly......But who pushed the billions of dollars of TV adds by our goverment
and banks......? WHo failed to require a cap of home growth values? who failed to make home owners learn of the
home buying process and down falls, and who ever let people with $50,000 year combined income buy more then a $100,000
home?
Hmmmm GOVERMENT! thats right if you want a home for $250,000 you need to make $100,000 after taxes.....Thats right sounds steep
but so is the inflated worth of homes....
we have seen people, loan officers bieng prosecuted for stated income loans and it’s laughable.....
The Goverment had the banks relax the rules
and thats how this all works, the banks says this is our guidelines and thats how you loan out the money
Now we have banks getting bailed out for making up all of these rediculous loans and again to Banks with 50 top executives making
millions each.....why not bail out the home owner, or at least do this, if some one needs out of their home
let them walk, pay off the difference of the home and whats owed after the bank sells it, instead we have people like the
last executive from countrywide forming companys to buy the loans and turn a profit and if he is making money fine
but not on the tax payers dollar...The goverment should stand up for bushes bad choices and bail out the home owner,
as to save american credit.....not banks with jumbo jets, and million dollar salarys.... when did we get duped, when did our new president
wake up and think oh hey this is a good idea....SAve the home owner.....then you will save the economy,
bail out folks from loan sharking by the big credit card companys, and force the banks to restructure loans,
lets get the homeless off the street....
Posted by on 04/02 at 09:37 AM
I just spoke with my brother Sam who is gay and dying of aids so I will add this…
he is sick and dying and yet he cant get married, because he loves another man, the way I see it is his choices are his choices
and the minute we judge or try to inflict our choices on his personal life style we are now
becoming tyrants, he cant afford his medication, and has to live below poverty level in a sickly enviroment…
NOw some would say this is mortage blogg what are you ranting about well I say it’s all the same, if we try to restrict
another humans freedom of beliefs because we dont agree then we might as well let Martin luther king die for nothing
either we honor progress, and peoples freedom of choice, and learn to live in exceptance and learn to help each other
again or we are no better or worse off with a dictator........II here people say wow we have grown a black president, I say I pitty
a country who needs to reffer to him anything beyond a good strong, good hearted man.
When our love for human life only goes as far as our own beliefs we have failed as a nation, I say who cares if Obama is black
,brown,green I say rally behind a man who is willing to try and change
stand up for eqaul rights for every american not because we agree because we are american
I say give any man willing to pay taxes and properly immigrate him self to america a green card and if living conditions are so bad
in his or her country that he must run out of fear then lets not close our borders lets expedite the process
and finger print him and help them and require them to work and follow our laws.
In america we are born free and promised to be protected but we have lived in the blind concept that our goverment and
our legal system plays fair and by the books, we must stand and fight, we must
make the change now as rosa parks did not because it will be better for us now
but because we must do this for those who follow us, as we must be a nation
of strength and love and brother hood....
untill my brothers sexual preference for the love of his life is not the term to label him as a class in society
then we must push ahead, as I love my brother with all of my heart and to me he is not gay
and I dress better and where victoria secrets lotion but I love women, Untill we say no to bail outs
of those who don’t need it and start paying our police officers what they deserve, I mean they are laying their lives on the line
for a belief in a better america yet they still make under $100,000, untill our legal system is fixed to the point that it does not try to
prosecute on apersonal feelings and facts only, untill grandmas and grandpas can get medication they need to live
longer in a respected manner above the average untill we worship in our own ways and yet unite because we understand
untill biggotry is no more and untill our goverment does the things that are hard we will be falling and when this
giant falls we may be blind sided by those with hate for us...911 god rest everyones souls was not to attack
physically it was to financialy set america on her backside, and they though 30-50 years down the road on public opinions and
how america would curse their own president if he wasnt perfect, and the devistation the have now caused
is a win for them, so bush was not perfect yes we all no but he was a president for the united states and so
we better show respect for our flag as millions before us have died for her and her beliefs,
and stop bad mouthing our goverment, and be the change we want to see in others......
Look for my book next year Called the “Ripple Effect” As america must stand together or we will fall together.....Buffet, gates
We have to many homeless and druggies?????SPend some of that money in our citys and fund bigger and better shelters that educate
and retrain our homeless......everyone can do something as we are yet a stone in the pond and by virtue
can cause a precision ripple......
I Love my country, I love life, I love my family and I dont kow you but I am sure I love you
NoahBe the change
Posted by on 04/02 at 09:38 AM
My wife and I have been battling CountryWide/Bank of America for several months now. They are hell bent on not helping people caught in the financial meltdown of the U.S. economy. Today we filed a complaint with the Comptroller of the Currency, the federal agency that oversees CountryWide/Bank of America. Everyone who is having problems needs to do this. If enough of us complain, they will have to act. Their website is WWW.helpwithmybank.gov.
Posted by on 04/27 at 06:47 AM
Thank you for your post. It was an affirmation of what we already knew and was encouraging. But we wanted to let everyone know that mortgage lenders are still deceiving the American people and the American government regarding loan modifications.
Please do not misunderstand. There are lenders who are doing their best to help homeowners and we are pleased they are now generally making a effort to work with homeowners and keep them in their homes. We applaud those lenders/banks. However, NOT with Countrywide Financial (now operating as Bank Of America Home Loans).
This lender is blatantly employing forestalling tactics to deceive the media, government, and the American public. In our opinion, this lender has absolutely no intention of complying with President Obama’s American Recovery and Reinvestment Act of 2009 and has no intention of keeping homeowners in their homes. Countrywide Financial’s website says they have a “commitment to supporting the Making Home Affordable program” but that is a lie. We have submitted numerous complaints with government offices regarding Countrywide Financial for their refusal to grant us a loan modification on our home even though we meet the criteria.
Here’s the deal:
1) Countrywide is NOT MODIFYING loans despite what they tell the government, the media and the American people.
2) Countrywide is violating court orders and is in contempt of court.
3) Countrywide received TARP funds and yet they openly refuse to abide by the mandatory Obama loan modification guidelines.
Bottomline: Countrywide Financial is STEALING our taxpayer bailout monies! AND LYING TO EVERYONE!
For those who are experiencing loan modification issues similar to our situation, please seek advice from an attorney AND (if you qualify for a modification and your lender still denies you) DO NOT BE AFRAID TO LET GOVERNMENT OFFICIALS KNOW ABOUT YOUR LENDER REFUSING TO GRANT YOUR MODIFICATION . Write to your Congressman or Congresswoman, write Housing and Urban Development, your state’s attorney general, your state’s housing departments, your state’s consumer affairs, your governor, the Better Business Bureau, the Federal Trade Commission, the Department of Real Estate, even write to the President of the United States, the Vice President of the United States, the Office of Public Liaison, write...write..write...or fax...fax...fax...or email..email...email..or call..call..call. You need to let our government know what’s happening at the consumer level. Not sure where to begin? go to www.whitehouse.gov
Thank you...and good luck!
Posted by on 05/15 at 11:16 AM
I have always paid my loan on time and took every proactive step to avoid defaulting on my loan. I knew my loan is due to reset from it’s current ‘interest only’ and I would not be able to afford it. So over the past 6 months I’ve spoken with 2 “home retention” representatives from Countrywide, faxed and mailed every piece of documentation they asked for within the timeframe they required but no one has ever contacted me.
I’ve sent several e-mails to Countrywide customer service trying to find out the status of my work-out only to be told I had to call a number which only leads to endless dead-ends in phone-tree hell! Now they say that they never received the first packet I sent and they claim that the packet I sent ‘registered’ mail and the third packet I faxed the same day did not show up on time… (I have proof that all three packets were sent on time)
Again, not ONCE has anyone botered to contact me and let me know the status of my request for help or that there was a problem.
So surprise, surprise, the minute I can no longer pay my mortgage and miss a payment, I get a call from some guy in India who barely speaks English, is impossible to comprehend, and has NO CLUE what the status of my account is or why I was never contacted, or any advice at all, except to tell me that “It’s not my department” and I should call the home retention representatives to asks for a possible modification!!!
This is NO way to conduct business. I’m frustrated! I’m angry at Countrywide and Bank of America for painting a false picture to the public of being ‘helpful’ and ‘proactive’ when if fact that is a lie. This all could have been avoided but they are now the reason I am forced to file bankruptcy. Shame on you, Countrywide!
Posted by on 05/24 at 06:53 AM
Countrywide or Broker pulled a one on me?1/2 hour before closeing was told PMI would $358.00mo insted of $139.00mo.At signing was told PMI would be on loan for 12years.Wrote underwriter for reason why.No re-ply.Called Countrywide no help.I have lived in home over four years have paid over $15,000 in PMI.Never Late.Do you know where to get Help?Thank You
Posted by on 08/11 at 10:38 AM
Don’t sign the papers if the terms are misrepresented. period.
Posted by on 08/11 at 11:05 AM
I am still so amazed to see that there are so many people effected by the countrywide problems. at least i am not the only one however I would never wish any problem of this magnitude on anyone.
Posted by on 08/11 at 12:23 PM
What can be done about Countywide throwing high PMI for 12 years at the last min. they will talk to me.
Posted by on 08/18 at 01:34 PM
Just to let every know, had house aprased for re-fi,it was $2,000 more than 4 years ago and PMI is up to $16,000 paid so far. Ha;Ha; I have kicked myself many times for being so Dumb or Easy.Sucker. Where do I go from here?
Posted by on 08/22 at 08:04 PM
How about this: Country Wide forcloses on the property and auctions the property to the highest bidder, however the highest bidder backs out of the bid and Country Wide Mortgaqge dba Wm Specialty Realty quietly buys the property for the amount of the loan and resells the property at market value. This is a true story.Incidently the property was appraised at 400K and Country Wide dba as WM Specialty (subsidiary of Washington Mutual) bought it for 112K. If anyone out there has had a similiar experience I would love to hear from you as I have a court date on Feb 26, 2009 charging them with fraud and deceptive business practices under Ma Law 93a. Any information regarding this company would be appreciated.
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
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