Forensic and Securitization Audits – Proven Results

“Rules are made to be broken” or so the saying goes, but in reality, especially in a homeowners’ reality, rules are made to be followed and enforced. Forensic Audits actually highlight the rules that were not followed during loan origination and Securitization Audits shed light on rules that need to be enforced as a loan is sold time and again. Since our founding in 2005, Mortgage Loan Compliance®, has been strong advocates for lending compliance and mortgage regulations. Our audit services are thorough and easy to understand. Homeowners, as well as Bankruptcy, Litigation, and Foreclosure Defense Attorneys rely on us for detailed reports to help get settlements, as well as stopping or delaying the foreclosure process. Although Pro Se or Self-Help Litigants are not seeing as much traction as those who use attorneys the foreclosure numbers prove that getting the facts on your loan and fighting your lender is actually working.

In states like Florida it now takes on average 858 days to foreclose according to statistics from RealtyTrac. But further up the coast the amount of time is even longer. New Jersey for instance is 931 days to complete a foreclosure process and New York is 1,072 days nearly 3 years. Across the nation the average is 385, which is twice as long as it took for the robo-signing, fraudulent “pretender” lenders and servicers to bull-doze people from their homes at the start of the Mortgage Crisis. At the end of 2007 the average time to complete a foreclosure was less than 5 months, or 140 days to be exact.

Some banks and critics will say that the delay provides no benefit to the borrower and only destroys property values, but try convincing the single mom who had a financial hardship and was able to find the loopholes to stay in her home for and care for her family the last 3 years otherwise. Foreclosure processing times are generally longest in state where the courts are involved in finalizing the process – judicial states. With the help of your Attorney any foreclosure can become judicial by simply filing a lawsuit seeking damages for the broken rules your audit uncovers.

Again rules are rules and a homeowner should always double check their loan paperwork, even those who take out loans today. It goes without saying that during the holiday season everyone is sure to check their receipt from the local toy store to ensure the mark-down was properly credited and all items were in the bag. Do the same with your home loan and get the facts.

Have you reviewed your loan yet? Get The Facts!
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Mortgage Loan Compliance | The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Fannie Suspends Evictions For The Holidays, Not Foreclosures

Fannie Mae announced December 3, 2012 that legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be allowed to remain in the home during the holidays. Evictions of foreclosed single family and 2-4 unit properties will be halted from December 19, 2012 through January 2, 2013.

"We're taking this step in support of families who have faced financial challenges and gone through a foreclosure," said Terry Edwards, Executive Vice President of Credit Portfolio Management, Fannie Mae. "The holidays are a chance to be with loved ones and we want to relieve some stress at this time of year. We encourage homeowners having difficulty to reach out for help as soon as possible."

Previously, Fannie Mae announced a temporary suspension of foreclosure sales and evictions in areas designated for individual assistance by FEMA due to Hurricane Sandy. That 90-day suspension will last through February 1, 2013.

Homeowners can visit www.knowyouroptions.com for resources on how to prevent foreclosure, including contact information for Fannie Mae’s 12 Mortgage Help Centers located across the country.

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Mortgage Loan Compliance
The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

FHA Troubles – Taxpayer Bailout Possible

A independent audit to be released on today projects that the Federal Housing Administration (FHA), a government agency that insures mortgages, will not have the cash reserves to pay all of its obligations, with the total shortfall amounting to about $16.3 billion.

“This does not mean F.H.A. has insufficient cash to pay insurance claims, a current operating deficit or will need to immediately draw funds from the Treasury,” the report stressed.

FHA insures more than $1 trillion in mortgages, but its reserves fell to below $3 billion last year making a Taxpayer bailout very likely. The coming report cites a number of additional weaknesses on the agency’s books.

“We will continue to take aggressive steps to protect F.H.A.’s financial health while ensuring that F.H.A. continues to perform its historic role of providing access to homeownership for underserved communities and supporting the housing market during tough economic times,” said Carol J. Galante, its acting commissioner, in a statement.

The F.H.A. “has weathered the storm of the recent economic and housing crisis by taking the most aggressive and sweeping actions in its history to reform risk management, credit policy, lender enforcement and consumer protections,” Shaun Donovan, the secretary of housing and urban development, said in a statement.

Politicians in Washington, particularly Republicans, have voiced concerns that the agency could become a drain on the taxpayer, much like Fannie Mae and Freddie Mac. Those two mortgage finance giants have not required additional taxpayer funding in recent quarters, as the housing market has stabilized. But they have nevertheless received about $190 billion in federal financing in the last four years.

An agency release cites three reasons for its deteriorating financial position. Home prices have not risen as quickly as the administration’s actuaries expected. Low interest rates have weakened its books. The agency’s independent actuary used a “refined methodology this year to more precisely predict” its losses.

More broadly, the agency is still struggling from the burst of the real estate bubble. By many measures, housing prices have only recently started to stabilize and increase. The rate of foreclosures remains high.

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Mortgage Loan Compliance
The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Are Lenders Too Big To Jail?

Roy Oppenheim, Co-Founder of Oppenheim Law in Fort Lauderdale, Florida and creator of South Florida Law Blog recently noted some striking similarities in a fraud involving Facebook and one you may be facing today, Robo-Signing.

Federal prosecutors have decided to indict Paul Ceglia, a fraudster, who tried to bilk Mark Zuckerberg, founder of the social network Facebook. Ceglia claimed he had a contract where Zuckerberg gave him half the company years ago in exchange for some program coding he did for the young college entrepreneur.

In a press release announcing Celiga’s arrest, U.S. Attorney Preet Bharara said after claiming that Celiga doctored, fabricated, and destroyed evidence involved with his initial lawsuit: "Ceglia's alleged conduct not only constitutes a massive fraud attempt, but also an attempted corruption of our legal system through the manufacture of false evidence. That is always intolerable."

Oppenheim highlighted that - “if you simply removed Ceglia's name in that quote and replaced it with the name of almost any bank that has serviced a mortgage in the last five years, you would have the most succinct condemnation of the robosigning crisis to come out of the mouth of a federal official. Servicers, through their use of Linda Green and friends , were relying on fraudulent or non-existent documents in foreclosure after foreclosure, at a time when Facebook was still in its college-dorm infancy. The only difference here is Ceglia has been charged, yet we have not seen a single Wall Street banker criminally prosecuted, let alone any financial institutions. But make no mistake, the crimes bare some startling similarities.”

If you’re wondering how exactly the feds are going after Ceglia, he is being charged with mail fraud and wire fraud. That is how they go after fraudsters when they have no other way to prosecute. So in essence, this case has provided Eric Schneiderman the blueprint on how to prosecute the banks.

Get The Facts On Your Loan and Protect Your Rights!

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Mortgage Loan Compliance
The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Big Banks Give Big Bucks To Sandy Relief Efforts

Weather forecasters warned that a winter storm could hit the Northeast next week. Meanwhile hundreds of thousands of people in New York City, Long Island and New Jersey may not have power restored for up to 10 more days, officials said Thursday. With relief efforts under way, many corporations are stepping up and using their brand power to help assist those affected by Sandy.

Today, two of the “Big Four” pledged huge donations to help the Red Cross and local recovery efforts. Bank of America’s Charitable Foundation will donate $1 million to support relief efforts, including $500,000 to the American Red Cross Hurricane 2012 fund. As relief efforts evolve in the coming weeks, the remaining $500,000 will be directed to national, regional and local nonprofits to support long-term recovery needs

Wells Fargo bank will donate $1 million for relief efforts as well. A portion of the funds, $250,000, will go to the Red Cross. The remaining $750,000 will go to support nonprofits conducting grassroots relief and recovery efforts in affected areas.

As residents and business owners assess the damage caused by Hurricane Sandy, there’s a realization setting in that it will take plenty of time for things to return to normal. The Red Cross (redcross.org) provides shelter, food, health and mental health services to help families and entire communities get back on their feet. Although the Red Cross is not a government agency, it is an essential part of the response when disaster strikes.

Text REDCROSS to 90999 to Donate $10 to Disaster Relief Efforts

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Mortgage Loan Compliance
The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com



Donate $10 Via Text Message*

Text REDCROSS to 90999 to donate to Disaster Relief efforts (You can make a $10.00 donation to the American Red Cross. Charges will appear on your wireless bill, or be deducted from your prepaid balance. All purchases must be authorized by account holder. Must be 18 years of age or have parental permission to participate. Message and Data Rates May Apply. Text STOP to 90999 to STOP. Text HELP to 90999 for HELP. Full Terms: www.mGive.org/T.)

Wells Fargo Finally Facing Fraud Charges, DOJ

The Department of Justice (DOJ) announced actions on Tuesday charging civil action against Wells Fargo Bank for allegedly filing fraudulent insurance claims against the Federal Housing Administration (FHA). The suit charges the company defrauded the Federal Housing Administration (FHA) by submitting improper claims for reimbursement on government insured loans. The suit, filed by Manhattan U.S. Attorney Prett Bharara, seeks damages and civil penalties, claiming that the bank has collected millions of dollars through fraudulent claims.

"As the complaint alleges, yet another major bank has engaged in a longstanding and reckless trifecta of deficient training, deficient underwriting and deficient disclosure, all while relying on the convenient backstop of government insurance," Bharara said.

Wells, the largest U.S. mortgage lender and fourth largest bank by assets, denied the allegations, saying its FHA delinquency rates were lower than the industry average and that many of the complaints had been previously addressed with the Department of Housing and Urban Development (HUD). Wells said in a statement it believes it acted in good faith and in compliance with FHA and U.S. Department of Housing and Urban Development rules. The bank said its FHA delinquency rates have been as low as half the industry average.

The charges were filed under the False Claims Act, which provides penalties for fraud against the government, and under the Financial Institutions Reform, Recovery, and Enforcement Act, or FIRREA, a law that was originally passed in the wake of the savings and loan crises in the late 1980s but has been recently used in several civil suits.

According to a story filed by Reuters, DOJ claims that Wells Fargo, an FHA approved lender, certified more than 100,000 loans for FHA insurance between May 2001 and October 2005. Neither FHA nor HUD reviews a loan before approving it for FHA insurance, relying on their lenders to insure compliance with program rules. During a seven-month period in 2002, at least 42 percent of these FHA backed loans would not have qualified had the program guidelines been followed. FHA guidelines allow for a 5 percent variance.

Reuters said that Wells Fargo kept the defective loans secret from FHA even as it internally identified more than 6,000 loans as materially deficient over a nine year period. Half of these loans had defaulted within the first six months. Prior to 2005 the bank did not self-report a single bad loan and over the entire period from 2002 to 2010 it reported only 238 loans although it had separately filed suspicious activities reports with the FBI on some it suspected were fraudulent.

The complaint also charges that the bank failed to properly train its staff, used temporary workers, and improperly encouraged underwriters through bonuses to approve as many loans as possible.

The complaint seeks treble damages and penalties for hundreds of millions of dollars in insurance claims already paid to Wells Fargo, as well as penalties on claims HUD may pay in the future. The complaint also includes specific allegations that the lender failed to report another $190 million in loans it should have flagged as potentially problematic to HUD. This could increase the eventual payout from the bank.

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Mortgage Loan Compliance |  The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Court of Opinion - Pro Se Homeowner Problem

From time to time you will hear of other homeowners winning cases against their lender with the help of paralegals, internet “legends”, or law students, but unfortunately a greater number are losing. There is a reason, or several, why Pro Se Litigants have a hard time fighting through the judicial system, proper representation.

Going to court without a lawyer is a growing phenomenon. Whether it's the high cost of legal fees or growing distrust of lawyers in general, the trend is for more people to fight foreclosure without lawyers.

The American Bar Association reports nearly 1/2 of all Pro Se homeowners believe that lawyers care more about their own self-interest than a client's rights.

If you go by calls and emails Mortgage Loan Compliance receives, there's good reason for this! Common complaints are about Lawyers who bail at the last minute; Lawyers who don't know what they're doing; and worst of all, Lawyers wishing to curry favor with judges and not demanding their clients’ rights.

So is there a judicial "conspiracy" against Pro Se litigants? To find a lawyer goto The National Association of Consumer Advocates www.naca.net

Not entirely. After further conversations with Homeowners and Attorneys alike, most Pro Se Litigants loss their cases because:

1. Most homeowners don’t understand or know the official Rules of Evidence that control the judge and all parties and their lawyers.


2. Most homeowners don’t understand or know the official Rules of Procedure that control the judge and all parties and their lawyers.


3. Most homeowners have no idea what "due process" really is.


4. and most homeowners can't recognize the opposing lawyer's dirty tricks.


As a homeowner you have tough decision to make about your home and legal situation. Once you have gone through your mortgage paperwork and had a audit completed what is the next step? Because your mortgage is a legally binding contract, between you and the lender, it is your right to resolve issues in court.

Get the facts, audit your loan, speak with an Attorney, and protect your rights.

However, if you are going to Sue Your Lender on your own, learn how to present a winning case step-by-step with Jurisdictionary ”How to Win in Court" self-help course.

Nearly ½ of all court proceedings in the U.S. involve at least one Pro Se party ... and too many of them are losing all because they don't yet know the "rules of the game" or how to play to win! Don't waste the court's time and get justice by knowing the rules and how to use them tactically to control the judge and opposing counsel.

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Mortgage Loan Compliance - The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Bank of America Slow To Meet Foreclosure Settlement Requirements

Five financial institutions that are part of the settlement provided $10.6 billion in consumer relief from March 1, 2012 to June 30, 2012 with $8.7 billion in the form of short sales in which customers sell their homes for less than the mortgage's value. Bank of America Corp, however, is lagging other banks in meeting its requirements to reduce customers' mortgage balances under the $25 billion Nationwide Foreclosure Settlement with the U.S. government, according to a report released on Wednesday.

The report is the first update on how the five banks are doing in meeting the terms of the March settlement with federal agencies and state attorneys general. The settlement was meant to resolve allegations that they mishandled foreclosures, and the banks have three years to meet the requirements or face penalties.

Unlike its competitors, Bank of America did not modify any first-lien mortgages to reduce the amount of money the borrower owes, and it also did not complete any refinances by June 30, according to the first report by Joseph Smith, the official monitoring the agreement.

Bank of America did allow $4.8 billion of short sales, the most of the five banks.

Bank of America spokesman Dan Frahm called the report an "early snapshot" and said the bank has made significant progress since June 30. The second-largest U.S. bank expects to meet all of its required targets in the first year, he said.

The bank has completed more short sales because they did not require new processes to be rolled out, he said.

The settlement requires banks to provide around $20 billion of consumer relief by reducing loan balances for struggling borrowers and refinancing loans for customers whose homes are worth less than the value of their mortgages.

JPMorgan Chase & Co completed $367 million in first lien modifications in which borrowers had their loan balances reduced, about half of all modifications.

Counting all types of relief, Bank of America provided $4.9 billion in assistance in the four-month period, followed by JPMorgan ($3 billion), Wells Fargo & Co ($1 billion), Citigroup Inc ($873.4 million) and Ally Financial Inc ($755.8 million.)

More than 137,000 customers have received an average of nearly $77,000 in relief under the agreement so far, according to the report.

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Mortgage Loan Compliance | The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Should Foreclosure Settlement Money Go To State General Funds

States' approved uses for their Foreclosure Settlement shares range widely. A National Conference of State Legislatures summary said Colorado's money is going for housing-related programs and services, Georgia is using its share for regional and rural economic development, and Nebraska's is being deposited in the state's rainy day fund.

While critics say the money should be used to help mortgage borrowers, a lawyer for the state said Wednesday that Arizona is entitled to use $50 million of its share of a multistate foreclosure settlement paid by lenders to help balance the state budget because it's compensation for revenue lost due to the housing market collapse.

"Everyone who pays taxes in this state has been affected by this foreclosure crisis," said Douglas Northrup, representing Attorney General Tom Horne. "It doesn't have to be put aside for a narrow subset of people who were in danger of losing their homes ..."

Tim Hogan, an attorney challenging the $50 million transfer to the general fund disagreed, saying that's a legally shaky argument and that the money is intended for services and other uses directly related to mortgage foreclosures.

"Just sticking money in the general fund doesn't improve or make better the foreclosure crisis," he said. "You're just spending money on state government."

Arizona is not alone among states in using settlement money to prop up its budget, but other states have designated all or most of their shares to bolster or launch hotlines, financial counseling and other services and programs directly related to mortgage foreclosures.

Hogan, an Arizona Center for Law in the Public Interest attorney, said the only compensation the state can claim is for direct costs, such as the expense of investigating lenders' mortgage practices.

Judge Mark Brain of Maricopa County Superior Court said he'd rule within several weeks on the opposing sides' requests that he dismiss the lawsuit or block the transfer.

The $50 million represents slightly more than half of the $98.8 million of Arizona's share of settlement money.

Aside from the money provided to state governments, other pots of settlement money are intended to compensate or help borrowers.

Much of the Arizona case centers on legal arguments about whether the challengers had a legal basis to sue and whether the Legislature could appropriate the money once Horne agreed to put it into a trust fund as part of the settlement.

A similar turf issue is playing out in Florida where Attorney General Pam Bondi is feuding with the Legislature over who gets to decide how to spend that state's $334 million allotment.

Bondi has insisted that she be allowed to spend the money without having to get prior approval from the Legislature, while lawmakers contend they have constitutional authority to spend the money.

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Mortgage Loan Compliance
The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Fannie and Freddie (GSE) Allow Short Sales For Current Mortgages

The Federal Housing Finance Agency (FHFA) announced today that Freddie Mac and Fannie Mae are revising their short sale guidelines and delegating authority to their mortgage servicers to approve short sales as of November 1. The new procedures are part of the Servicing Alignment Initiative which the Federal Housing Finance Agency has directed the GSEs to develop.

FHFA has said that the new guidelines will move short sales forward expeditiously for borrowers who have missed several mortgage payments, have low credit scores and serious financial hardships because the documentation required to demonstrate need has been reduced or eliminated.

Servicers will also be able to process short sales for borrowers who are current on their mortgages but are facing sudden hardships such as death, divorce, disability, or relocation of more than 50 miles for reasons of employment. Servicers will be allowed to approve short sales in such circumstances without additional approval from Freddie Mac or Fannie Mae.

The two GSEs will waive the right to pursue a deficiency judgment in exchange for the borrower making a financial contribution to the remaining principal balance or signing a promissory note to that effect if that borrower has the capacity to do so.

The changes will consolidate the existing short sales programs of the GSEs into a single uniform program and provide both servicers and borrowers clarity on processing requirements when a foreclosure sale is pending.

The streamlined program rules will enable lenders and servicers to quickly and easily qualify borrowers, who do not have to be delinquent on their mortgages, to qualify for short sales. As a further step to facilitate speedy sales, both of the GSEs have authorized a payment of up to $6,000 to incentivize second lien holders to allow the short sales to proceed.

Additional changes will make it easier for servicers to process short sales for members of the military who must relocate due to Permanent Change of Station orders. In these cases servicers can streamline the process including the elimination of back-end debt-to-income ratios and removes the obligation for borrowers to contribute funds to cover the shortfall between the sales price and their outstanding mortgage balance.


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Mortgage Loan Compliance
The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

CA Eminent Domain Proposal Causes Stir

San Bernardino, Ontario, and Fontana (California) have come up with a way to help their current homeowners who are underwater, but the banks are fuming at the idea. 

Utilizing the power of Eminent Domain to take mortgages away from lenders and re-work (modification) with them homeowner.

To read more on this story click here: 

Proposal to Seize Underwater Mortgages via Eminent Domain not Well Received

The program is still in its initial stages and will be worked out in public...stay tuned for updates!

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Mortgage Loan Compliance | The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Fireworks, Explosions, and the LIBOR, Possibly A New Independence Day

While we BBQ in San Diego, watched parades in Ohio, and celebrated our Independence from the British rule a scandal was exploding in sync with the NYC Fireworks finale. This brilliant display of Bank CEOs resigning, bank shares dropping more than 15%, and $450 million (dollars not pounds) in fines highlight just how dependent these United States are really to the Empire across the pond.

You may have seen the word “LIBOR” before but not many people can explain it. The Libor (London Interbank Offered Rate) is a long established, widely used rate that can help determine how well the banking system is doing. Most US student loans, mortgages, and car loan rates are often determined by the Libor. About $10 trillion worth of US loans are indexed to Libor. And if you have an adjustable-rate mortgage, you're more than likely paying the Libor rate, plus an additional interest payment.

During the financial crisis Barclays started fudging the rate in an attempt to make the bank look more solid than it was. However, Barclays in reality had higher interest rates than most other competitors, and this has led to a flurry of investigations and negative publicity.

This fraud was paramount during the financial crisis because when the LIBOR rate is relatively high compared to the Bank of England’s base rate, it can signal a level of distrust among banks, much like when credit-card companies charge higher rates to customers with little or poor credit. The London base is especially important, since over 20% of international lending and 30% of foreign-exchange transactions are processed through London.

Given the extensive reach of the Libor, it would seem critical that the rate be calculated in an impartial and transparent manner. But the opposite seems to have been the case as with most financial transactions of late.

To view a great Timeline of this multiyear scandal and investigation click here

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Mortgage Loan Compliance | The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit http://www.ml-compliance.com/

 

3.5 Million Foreclosures and Counting...

Since the financial crisis began in September 2008 there have been approximately 3.5 million completed foreclosures across the nation and, as of the end of May, another 1.4 million homes were in the national foreclosure inventory. The inventory, the number of homes in some stage of foreclosure, is down from 1.5 million in May 2011. The current inventory represents 3.4 percent of all homes with a mortgage.

Mark Fleming, chief economist for CoreLogic said that the foreclosures in May brought the 12 month total to 819,000 foreclosures which is an average of 2,440 foreclosed homes a day. "Although the level of completed foreclosures remains high, it is down 27 percent from a peak of 1.1 million in all of 2010," Fleming said.

The states with the highest numbers of completed foreclosures over the 12 months ended in May were California (133,000), Florida (92,000), Michigan (60,000), Texas (58,000), and Georgia (57,000). These five states account for nearly half (400,000) of the completed foreclosures in the entire country during that period.

Though the national foreclosure inventory levels remain steady, around 1.4 million homes, there have been dramatic shifts at the state level," said Anand Nallathambi, president and CEO of CoreLogic. "Nevada, Arizona and Michigan, for example, each experienced at least a 20-percent decline in the foreclosure inventory from a year ago. While foreclosure inventories in most states are declining, the foreclosure inventory is still rising in many judicial states, such as Hawaii, New York and Connecticut."

On a percentage basis the states with the most foreclosures were Florida (11.9 percent), New Jersey (6.6 percent), Illinois (5.3 percent), New York (5.0 percent), and Nevada (4.9 percent). These five states with the most completed foreclosures are also the top states in terms of their foreclosure inventory. Four of the five states, Nevada being the exception, use primarily a judicial foreclosure process which has been blamed for much of the backlog of loans that are severely delinquent but not yet foreclosed.

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Mortgage Loan Compliance | The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com


Advertisement:

The Facts On Reverse Mortgages

Reverse mortgages (sometimes referred to as "home equity conversion loans") give older homeowners the ability to use their equity without selling their home. The lending institution gives you money based on your home equity amount; you get a lump sum, a monthly payment or a line of credit.

Paying back your loan is not necessary until the time the you put your home up for sale, move (such as into a care facility) or passes-on.

You or the representative of your estate must repay the reverse mortgage funds, interest accrued, and other finance charges at the time your house is sold, or you are no longer living in it.


Are You Eligible?

Generally, reverse mortgages are offered to borrowers at least 62 years of age, who have a small or zero balance owed against the home and use the home as their primary residence.

Many homeowners who are on a fixed income and find themselves needing additional money discover that reverse mortgages are very advantageous for their situation.

Interest rates may be fixed or adjustable and the money is non-taxable and does not affect Social Security or Medicare benefits. The house is never in danger of being taken away from you by the lender or put up for sale without your consent if you live longer than the loan term - even if the current property value creeps under the balance of the loan.

Just a few facts on reverse mortgages. 

Always Get The Facts, Audit Your Loan and Protect Your Rights!

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Mortgage Loan Compliance | The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit http://www.ml-compliance.com/

Servicing Settlement Funds Help New Yorkers Fight Lenders

New York State Attorney General Eric T. Schneiderman announced that approximately $15 million of the $132 million New York State will receive in the National Mortgage Servicing Settlement will now be used for foreclosure prevention and housing support activities.

"We have an obligation to provide assistance to the struggling homeowners across the state facing foreclosure, and this portion of the national mortgage settlement will ensure that families in New York State have the legal services they deserve to fight wrongful foreclosures and protect themselves in court," said A.G. Schneiderman.

"Funding for legal services is an essential first step in bringing relief to the homeowners and communities that have been devastated by the crash of the housing market. As we continue to investigate the mortgage crisis that has impacted communities in every corner of this state, we must ensure that justice and accountability prevail at every step of the way. I'd like to thank the Assembly, Senate and Governor for working with our office to make this happen. "

AG Schneiderman also reported that up to $9 million of the funds will be used to extend the state's Foreclosure Prevention Services Program which were set to end April 1, 2012 and another $6 million will support housing and community renewal activities through non-profit community housing organizations. Schneiderman had announced earlier that his office would fund an additional $3 million in foreclosure prevention services from proceeds secured from two other settlements.


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Mortgage Loan Compliance | The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

S.O.S.M – Save Our Service Men, HOPE NOW

This past January, HOPE NOW, the voluntary foreclosure prevention program assisted delinquent homeowners in achieving 74,000 permanent loan modifications. Approximately 18,000 of these loan modifications were done through the Home Affordable Modification Program (HAMP) and 56,000 were proprietary modifications. HOPE NOW has identified four military bases where special events will be held to assist our service men and women.

Hope Now is a group which consisted of investors, mortgage insurers, private sector mortgage servicers, and non-profit counselors has completed more than a million loan modifications since the alliance was formed early in the housing crisis.

According to some reports January 2012 was the first time since late in 2009 that there were more foreclosures sales (approximately 79,000) completed than HOPE NOW loan modifications. Delinquencies of 60 days or more continued to remain flat at about 2.77 million, or approximately 6% of all loans.

Faith Schwartz, Executive Director of the program said, "HOPE NOW and its members have charged full speed into 2012 in the ongoing collaborative efforts to assist at-risk homeowners. Loan modifications continue at a steady pace and proprietary mods continue to show real signs of sustainability and affordability for homeowners. This is important to note, as these characteristics are vital to housing market recovery.”

HOPE NOW has scheduled events coming this March 9 in Las Vegas, in Sacramento on March 20, and Los Angeles on March 22.

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Mortgage Loan Compliance® | The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Fraud First, Then Everything Else

Production of the Note, Proof of Ownership, Securitization, breaks in the Chain of Title are all great defenses to foreclosure actions against your home, but shouldn’t your Lender and MERS have to defend themselves against fraud first then everything else.

Were you fully explained the loan process? Did you know all the risks involved with the purchase of your securities transaction, I mean mortgage. Was your mortgage legally viable and did you actually qualify at the fully indexed interest rate?

Ok so MERS, the Mortgage Electronic Registration System, won another court battle last week. But if anyone would actually read their “Mortgage” or “Deed of Trust” then yes as the New Hampshire Superior Court affirmed, in the case of Dow v Bank of New York Mellon Trust, you gave MERS the authority to both hold and assign its interest in mortgages under New Hampshire and other states law.

So did you believe that MERS was your Lender at your loan closing? If so, should MERS be liable for the origination fraud, misrepresentation, breach of fiduciary duties, and gross negligence just like the Lender?

Several cases brought by State’s Attorney General are still pending. New Hampshire Justice N. William Delker said in his decision that "there is a tremendous amount of case law throughout the country on the issues surrounding foreclosure actions when the promissory note is held by one entity and the mortgage is held by another entity - typically MERS. The process of recording each new assignment of the mortgage in the registry of deeds in order to perfect the security interest in the real estate would become exceedingly expensive and cumbersome if each time the promissory note and the mortgage changed hands a new mortgagee would have to be listed in the title record."

Homeowners should be aware of these rulings and not wait for the foreclosure process to start on their home before challenging their lenders. Keep in mind that the Mortgage Originators, Brokers, Real Estate Agents, Title Officers, Servicers, and Lenders all knew that you were being put into a bad loan that had a greater chance at failure versus success.

Audit your loan, get the facts, sue your lender and protect your rights!

_______________________

Mortgage Loan Compliance®
The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

National Mortgage Settlement Helps Homeowners or States?

According to JPMorgan Chase and four other mortgage servicers sites certain mortgages will soon be eligible for refinance, modification, short sale or other programs to help customers facing mortgage payment hardship.

While this settles mortgage servicing issues with federal and state agencies the obvious question is will the settlement programs actually supplement existing loan refinances, modifications and other alternatives to foreclosure programs that will help keep borrowers in their homes, forestall foreclosures and stabilize communities nationwide.

As we have seen with previous settlements, Lenders and Servicers typically continue to act in bad faith leaving most homeowners with no other option than to sue the lender themselves.

This settlement program renews borrowers hope, but read the fine print of some the options that may be available to you.

1. If your foreclosure occurred between 2008 and 2011: You may be eligible for a cash payment by contacting your state attorney general's office online. Those eligible will be notified by mail and according to the attorneys general website, this may take six to nine months. The state attorneys general and the Federal Housing Administration (FHA) insurance fund will receive and distribute funds to homeowners who qualify.

2. Current on your payments and interested in refinancing your loan: Your lender or service will notify you by mail if you are eligible for a refinance through the settlement in the next few months.

So, if you qualify, you may be contacted in the next few months while your home prices or values continue to decline.

If you were foreclosed on you could get up to $2,000, if you qualify.

Even though most homeowners have negative equity greater than $50,000; a Principal reductions of up to $20,000 may be available to you, if you qualify.

Finally, if you are delinquent or struggling to make your payments you must apply for a loan modification or other alternatives to foreclosure, but you may not qualify.

Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights.

_______________________

Mortgage Loan Compliance®
The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Residential MBS Working Group (MBS Fraud Task Force)

As of last week the Residential Mortgage-Backed Securities Working Group tasked with investigating mortgage fraud is official. The new office is part of the Administrations Financial Fraud Enforcement Task Force (FFETF) and was first announced by President Obama in his State of the Union speech last Tuesday.

US Attorney General Eric Holder said that the goal of the group will be to hold accountable any institutions that violated the law; to compensate victims and help provide relief for homeowners struggling from the collapse of the housing market, caused in part by this wrongdoing and to help turn the page "on this destructive period in our nation's history."

At the press conference last week Attorney General Holder along with Housing and Urban Development (HUD) Secretary Shaun Donovan, Securities and Exchange Commission (SEC) Director of Enforcement Robert Khuzami and New York Attorney General Eric T. Schneiderman, outlined the mechanics of the working group which will bring together the Department of Justice (DOJ), several state attorneys general and other federal entities to investigate those responsible for misconduct contributing to the financial crisis through the pooling and sale of residential mortgage-backed securities.

Schneiderman said, "In coordination with our federal partners, our office will continue its steadfast commitment to holding those responsible for the mortgage crisis accountable, providing meaningful relief for homeowners commensurate with the scale of the misconduct, and getting our economy moving again. The American people deserve a thorough investigation into the global financial meltdown to ensure nothing like it ever happens again, and today's announcement is a major step in the right direction."

The group will consist of at least 55 DOJ attorneys, analysts, agents, and investigators from around the country including the 15 civil and criminal attorneys and 10 FBI agents already employed in the FFETF unit. This team will join existing state and federal resources investigating similar misconduct under those authorities.

_______________________

Mortgage Loan Compliance®
The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Fannie and Freddie Principal Reductions Would Cost Taxpayer $100 Billion

The Federal Housing Finance Agency said that as of June 30, Fannie Mae and Freddie Mac guaranteed nearly 3 million mortgages on single family homes that are underwater, or worth less than the loans they secure.

Nearly 80 percent of the Fannie Mae and Freddie Mac borrowers with negative equity were current on their payments, said FHFA Acting Director Edward J. DeMarco.

"FHFA estimates that principal forgiveness for all of these mortgages would require funding of almost $100 billion," according to DeMarco in a Jan. 20 letter the FHFA posted on its website today.

DeMarco, whose agency was created by Congress to minimize losses at Fannie Mae and Freddie Mac and is independent of President Barack Obama's administration, has maintained that principal forgiveness would increase the size of the government's bailout of the companies, which have cost taxpayers more than $153 billion since they were taken under government control in 2008.

The agency compared the cost of principal forgiveness to the companies' current practice of forbearance, which allows delinquent borrowers to defer payments.

"Given that any money spent on this endeavor would ultimately come from taxpayers and given that our analysis does not indicate a preservation of assets for Fannie Mae and Freddie Mac (FMCC) substantial enough to offset costs, an expenditure of this nature at this time would, in my judgment, require congressional action," he said.

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Mortgage Loan Compliance® | The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

Mortgage Loan Compliance | FHA’s New $50 Billion Dollar Bailout

The FHA doesn't issue mortgages, but instead insures lenders against defaults. However in November 2011, an independent audit of FHA's finances found that losses from mortgage defaults had depleted the agency's reserve fund to 0.24%, or $2.6 billion, during fiscal 2011. This leaves the agency well below the Congressionally-mandated 2% level. (The ratio measures the net worth of the reserve fund compared with the value of the loans FHA has insured.) In 2006, the reserve fund stood at 7%.

According to the report, the percentage of loans in the FHA's portfolio with three missed payments or more rose to 9.3% in November, up from 8.4% in August.

At the time, the agency's auditor warned that if home prices continued to drop, FHA could run through the remainder of its reserves, forcing it to either seek a bailout from the Treasury Department or further increase the premiums it charges borrowers. Such a bailout could cost billions.

Joseph Gyourko, a Real Estate Professor at the University of Pennsylvania's Wharton School and author of a report entitled "Is FHA the Next Big Housing Bailout?.", argues that the FHA is so undercapitalized that it would need at least $50 billion, even if the housing markets don't deteriorate further. But even by more conservative measures, the agency would need at least $20 billion to meet the capital requirements mandated by Congress.

"It's highly likely that the FHA will need a taxpayer bailout over the next three to five years," said Gyourko.

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Mortgage Loan Compliance® The Forensic Loan Audit Company

Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!

Call Today 1-866-966-6615 or Visit www.ml-compliance.com