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
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Citing a new national report on subprime mortgages, Arizona Attorney General Terry Goddard said today that the mortgage industry needs to reach out to more homeowners at risk of foreclosure if the nation’s housing crisis is to be brought under control.
While mortgage servicing companies have increased outreach efforts and shown more willingness to modify home loans, Goddard said, the report shows most seriously delinquent borrowers were not undertaking any mitigation option.
The housing report was released by the State Foreclosure Prevention Working Group, a multi-state task force whose members include Goddard and 10 other state Attorneys General. The task force was formed last summer to work with subprime mortgage loan servicers to reduce the number of foreclosures by encouraging loan modifications and other sustainable solutions.
“The report found a very large gap between the number of homeowners needing assistance and the number who are getting any,” Goddard. “The report shows that home delinquencies have been growing at a faster rate than loss mitigation efforts. I’m particularly concerned about getting help to homeowners who are doing all they can to avoid foreclosure.”
The report summarizes mortgage data from October 2007. Key findings include:
◝ Seven out of 10 seriously delinquent borrowers are not on track for any loss mitigation option. The lack of interaction between mortgage servicers and homeowners remains a major problem. Data suggests that loan delinquencies are outpacing the increase in loss mitigation efforts.
◝ Servicers have increased their use of loan modifications and other home retention options. For those delinquent homeowners in contact with servicers, almost half (45%) are working toward a loan modification. Servicers are increasing their use of longer-term changes to the mortgage loan versus their earlier reliance on short-term repayment or forbearance agreements.
◝ Payment resets on hybrid adjustable rate mortgages (ARMs) have not yet been a driving force in foreclosures. A significant percentage of subprime adjustable rate loans are delinquent before they experience payment shock from their first adjustment, reflecting weak underwriting or fraud in the origination of the loan. With so many homeowners struggling to stay afloat prior to rate resets, we need to act quickly to address these hybrid ARM loans before the payment shock due to the rate reset triggers further foreclosures.
◝ Homeowners are helping themselves. Most delinquent loans resolved in October 2007 occurred due to the homeowner catching up on back payments. As of October, actions by homeowners, not servicers, have prevented the most foreclosures. This, however, may be a temporary development.
◝ The refinance option has nearly evaporated. Historically, serial refinancing was the primary way that the mortgage industry and homeowners managed delinquencies in subprime loans. Despite recent interest rate cuts, the mortgage industry will not be able to refinance its way out of this crisis absent dramatic changes in available loan products or a reversal in home price declines.
“The information in this report is invaluable,” Goddard said. “As the residential mortgage crisis has worsened, state and federal officials have been frustrated by the lack of reliable data on loss mitigation efforts by mortgage servicers. This report offers our first glimpse of reliable data on what is actually being done by servicers to provide relief to homeowners facing foreclosure.”
The task force collaborated with industry and federal regulators to develop a uniform data reporting format to collect comparative data to measure the extent of the foreclosure problem and the servicers’ response to it. Thirteen of the nation’s 20 largest servicers provided the requested data for the month of October 2007. These servicers represent approximately 58 percent of the total subprime servicing market. Reporting companies serviced 5,110,678 subprime and Alt-A loans.
Overall, over 150,000 delinquent loans were in the process of receiving a loan modification or other home retention accommodation at the end of October.
The State Working Group anticipates future reporting on the data collected from servicers. The Group will continue to collect monthly data from reporting servicers to provide public information on trends. A preliminary review of the November 2007 data suggests that subprime delinquency rates continued to rise in that month.
I am James D Kunkle, a 73 year old Korean and Vietnam war veteran, retired from the Air Force after 25 years military and 14 years civil service. I believe predatory lending and a loan to own scam has been perpetrated on me I have described what occurred in AG complaint CIC 07_16083 and Arizona Department of Financial Institutions complaint 4013157. The AZ DFI stated that they shared the case information with Arizona Corporation Commission. I have also informed the FBI and local newspapers. I hope these agencies will share the files containing details of my case with any interested parties that can assist in determining the best way to proceed.
The easy resolution is to walk away and allow the perpetrators unchallenged access to the fruits of 40 years of labor and dreams; however I am left with no assets and little time to start over. I am broke physically and mentally with no place to live, savings depleted, credit destroyed, and dignity seriously diminished. I cannot afford to hire an attorney to represent me and save my life’s work. I am not seeking outrageous damages, I only want to save my dream home if possible and salvage some dignity in the process.
I have heard little regarding my complaints and knew nothing of the Arizona Attorney General’s task force formed to investigate why the results of sub-prime loans, predatory lending, and loan to own scams are continuing.
I cannot walk away without doing something to prevent those organizations and persons from continuing their predatory practices motivated by greed. James D Kunkle MSGT/USAF/RET 1744 N Sea Pines--Mesa, AZ--85205 Phone 480 388 6296 FAX 480 807 6179.
Posted by on 07/21 at 11:04 AM
Give me a call and I will do a Forensic Loan Audit for you at no cost provided we submit all suspicious activities to ALL related Govt. and Regulatory agencies. 6618604978
Robert
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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