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| New Bank Cashflow Scheme: Bill For Non-Provided Services in forum [Market-Ticker]
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Steph4liberty
Posts: 1676
Incept: 2010-10-22
Raleigh, NC
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Johnson and others should be ashamed of themselves for not calling this behavior what it is...outright criminal fraud.
I really am waiting to hear that some Joe Schmoe tries something like this and when caught/prosecuted, uses "the Banks did it and are getting away with it so why can't I?" defense.
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"Man will never be free until the last Banker is strangled with the entrails of the last Politician" - unknown
"This isn't a market anymore, it's a computer game." - Drench
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Northeaster
Posts: 68
Incept: 2011-05-13
Massachusetts
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"I really am waiting to hear that some Joe Schmoe tries something like this" Photoshop. Of course, you'll be prosecuted, unlike The Banking Cartel. Then of course, you may lose your job, your home and have to file BK. My own Registrar is calling it a "criminal enterprise", but no one is in handcuffs: http://www.salemdeeds.com/pdf/PressRelea....Of course this just scratches the surface of massive fraud, enabled by our own CONgress. Think about it, this is just ONE issue, that spans across our entire economy. It's clear that it will be every man, woman and child for themselves, the government is certainly NOT here to enforce the Rule of Law, as "checks & balances" no longer exists, just like the Rule of Law. The Vote? How's that working? Harsh language? I'm sure The Banking Cartel is quivering as we speak. CONgress? Patting each other on their backs over a glass of bourbon. The rest of us? You either will be hedged or not, in about a decade, don't be in an area where people are not. |
Ktrosper
Posts: 1497
Incept: 2010-04-06
ft collins co
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Sweet business model ;)
It's so simple, even a cave man can do it!
You just MAKE **** UP and voilą - Successful, money-making business!!!!
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The unexamined life is not worth living.-Socrates
The only stable state is the one in which all men are equal before the law.-Aristotle
Liberty exists now in the spaces government has not yet chosen to occupy.-Doc Zero
I anticipate that 10 Dallas Cowboys Cheerleaders will blow me this evening.-K.D
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Andysvw
Posts: 1709
Incept: 2010-06-26
Tujunga Ca
Online
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The MBS side of this scam is going to prove to be the really dirty side. From the originators all the way to the guy that sold it to your 401. It was and is about the fees. They all piled on fees until the money was gone and then some.
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Aliveh
Posts: 4042
Incept: 2008-01-18
Los Angeles
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so this is why big banks are trying to sell their MSRs?
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Aztrader
Posts: 6648
Incept: 2007-09-10
Scottsdale, AZ
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It's called Bernanke Accounting..............
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Salt
Posts: 191
Incept: 2010-05-28
NC
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Ok, the fees are being charged but just whom is paying them if they are even paid at all? Or are they written off as non-collectable; for tax purposes?
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Frat
Posts: 1934
Incept: 2009-07-15
NKY
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Salt, that was my question - who are they charging/receiving these payments FROM? Normal customers/citizens? I sure as HELL would notice those frees monthly on something I no longer had, nor would I pay them!
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We're ****ed. Where's Henry Bowman when you need him?
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Xtbjeff
Posts: 185
Incept: 2008-03-19
St. George, Utah
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Does anybody think those monthly "servicing fees" sound a bit high? How long does it take to open an envelope and process a payment?
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Mindrayge
Posts: 67
Incept: 2010-09-18
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Salt, effectively the investors holding the certificates in the MBS are paying those fees. Those fees are paid out of the Distribution Account to the servicer prior to applying the schedule of payments out to the certificate holders. Servicers are reimbursed for any fees not paid by the borrower - they get first crack at the money coming into the MBS. At that end of the day, the amount of those fees is money not returned to the investors in the form of interest or principal. This is on top of the base 0.375% (or thereabouts) monthly servicer fee they get.
The actual money paid out came from the payments of principal and interest made by the other mortgage payers but the effective payer of the fees are the investors.
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J0nx
Posts: 3066
Incept: 2008-08-12
The trashcan of the nation
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Quote:I really am waiting to hear that some Joe Schmoe tries something like this and when caught/prosecuted, uses "the Banks did it and are getting away with it so why can't I?" defense. I've been saying this for years. Why hasn't some lawyer already done this is what I can't understand? Argue selective enforcement and demonstrate in court that their client was only following the ways of the higher ups and assumed that it was legal because the government was not prosecuting others for the same thing. There should be a rash of this going on right now. At the very least it was draw attention to the selective enforcement of crimes that we see now between the 1% and the 99%.
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The fraud and lies are only allowed to continue because the people allow it. Either through apathy or ignorance, they still allow it.
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Thystra
Posts: 538
Incept: 2009-07-12
Around the World
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As pointed out above, the real question is what is happening with these fees. Are they just being booked? Are they being billed? Against who? And is anyone paying? If the customer has paid off the loan, then they won't be making any more payments (in theory). Or is this just sloppy bookkeeping - loan/property is cleared out but left on the books and fees accrued so they can make the numbers look good (enron accounting)?
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Starwalker
Posts: 48
Incept: 2010-06-10
deer park wa
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wow! i paid my house off in sept. of last year with a loan from my 401k. boa was the servicer an fannie held the note. so maybe thier taping fannie an fredy for some extra change or should that be the taxpayers.
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**** me no **** you! tony montana
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Azusgm
Posts: 2385
Incept: 2010-12-02
East Texas
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Quote:effectively the investors holding the certificates in the MBS are paying those fees. Follow the money. Who are the investors in these examples? That would be Freddie Mac and the NY Fed. Every quarter, Timmay hands over "unused TARP money" to Freddie Mac to cover any loses. How those loses are calculated and distributed would make for some interesting reporting. Short answer: You and I are fueling this fraud with Timmah as our intermediary. |
Janedeaux
Posts: 287
Incept: 2009-09-16
Mississippi
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I'm not following this thought. Are the banks just printing up this income to make their inflow look good or are the schmucks still paying on a nonexistent mortgage?
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A nation of sheep breeds a government of wolves.-anon
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Genesis
Posts: 130663
Incept: 2007-06-26
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MBS investors are getting ****ed out of money they don't owe for services that are billed but not actually provided.
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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
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Onelegged
Posts: 265
Incept: 2009-11-13
NW Colorado
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Once again this will all result in exactly no indictments.
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The light at the end of this tunnel is a train.
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Blurtman
Posts: 563
Incept: 2009-01-24
Banned
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Just an "abuse," not a "crime" you see.
The prosecution of crimes is a necessary tool to control the masses, not the oligarchs.
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I have a reading comprehension problem and the owner banned me for repeatedly displaying it after being warned.
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Marvinmartian
Posts: 745
Incept: 2011-03-16
Pasadena, CA
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What happens to BofA when it puts a charge on its books for this kind of servicer error?
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Widgeon
Posts: 13481
Incept: 2007-08-30
Region formerly known as the United States
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Let's raise the bar ... not just simple Fraud ... it's Racketeering.
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Mannfm11
Posts: 3532
Incept: 2009-02-28
DFW, Tx
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I wonder if they are still carrying the loan on their book as a performing asset? One thing you guys need to realize. If the banks are broke, the government is broke. Forget everything else about the numbers. This circus of fraudulent bookkeeping is what keeps the dance going. You think Obama is going to pull the plug on his own parade? Hell no. Greece's problem isn't that they are broke, it is that all the banks in Europe take Euros. Otherwise, the Greek banks could run that ponzi for a long time. Think the rest of Europe's banks want to lend the fleeing Euro's back to the Greek banks? As for something I brought up the other day, David Hume, the 18th century philosopher. Here is a link to some of his writings, including Of Public Credit. http://www.econlib.org/library/LFBooks/H....Master link http://www.econlib.org/library/LFBooks/H.... II, Essay IX, OF PUBLIC CREDIT
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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
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Jstanley01
Posts: 8166
Incept: 2008-07-30
San Antonio, Texas
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What a HOOT! 
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You can't cheat an honest man. ~P.T. Barnum
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Nanna
Posts: 5658
Incept: 2008-01-20
NY State
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What I call matador paperwork, and for the big stuff, IMO it's endemic.
Meanwhile, financial institutions create more paperwork/audit trails on stuff that is relatively insignificant so as to promote the notion that we are "safer" similar to the notion that taking off one's shoes for the TSA makes us "safer."
Bah.
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"There are fluctuations in the market that don't mean anything."Ira Gluskin, February 14, 2012
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Mannfm11
Posts: 3532
Incept: 2009-02-28
DFW, Tx
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BAC's servicing is on the other side of the town where I live. I ran into a woman who at the time was a recent hire there. The way she described it was you didn't ask questions and there were many more lies told than truths. I doubt BAC bought that piece of crap, known as Countrywide (this place was their servicing before BAC bought it) unless they had a lot to lose or get out of the bag if it stayed on the market. For one, I read where BAC was a big seller of subprime credit default swaps, so they might have been on the line for a lot of the losses as it was. There must be a lot of pressure there to stop the losses.
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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
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