FraudLine: Loan Modification Agents Beaten and Tortured by Homeowners

Allison Tussey —  November 2, 2009 — 5 Comments

Stories covered on this week’s edition of FraudLine:

Loan Modifications Agents Beaten and Tortured

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Allison Tussey

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5 responses to FraudLine: Loan Modification Agents Beaten and Tortured by Homeowners

  1. August 22, 2010 at 6:09 pm

    Mandelman has written about the physical abuse inflicted in the Great Depression. I’m surprised we haven’t see more of this.

  2. Amen to that Leland! Mortgage brokers think they can do anything to their benefit, certainly not to the comsumers benefit!

  3. The law works for the rich, powerful and well connected. The honest person is left with nothing and is victimized by the crooks at every level. The following is a typical exchange between a lender/AMC and the appraiser;

    Loan Company Agent: Ring a ding ding “Hi Appraiser We’re going to do this loan and you have to hit the value”

    Appraiser: “I’m not going to get involved, what you are demanding is against the law and ethics regulating my industry”

    Loan Company Agent or AMC silently says to himself/herself:”So what, you are going to do it anyway or your payments will be delayed and furthermore if you don’t do it, it will affect your profile”.

    Appraiser repeats to himself/herself: “These people are crooks, I won’t do it”

    Loan Company Agent or AMC silently says to himself/herself: “I’m also going to have all your appraisal reports given grinder reviews” and I’m sure we can find some issue that will result in you being suspended or benched!!

    Appraiser silently says to himself/herself: “Do your worst, which I’m sure you will!!”

    Both hang up after saying “Thank you and have a nice day.”

  4. The root of this problem was simple the appraiser in colusion with a loan company would appraise any property for any “value”. If an appraiser complained or didn’t meet the predetermined value the appraiser was black balled. There was no recourse for the honet appraiser and they were effectively shut out of the market and lost income to the unscrupulous appraisers. In real estae everything seeks the lowest level.

    Goldman Sachs Mortgage, published guidelines in early 2007 indicating that it would accept a “stated income, stated asset” loan for a person with a subpar credit score of 600 who was borrowing 90 percent of his or her home’s value. The designation meant that although the borrower had poor credit, his or her claimed income and financial background would go unchecked.

  5. In some areas, reporting any crime to the authorities is a waste of time. The law mainly works for the rich, powerful and well connected. Fraud is too hard to prove, so the authorities generally ignore it, especially when it involves real estate fraud.

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