Fraud Articles

Out Of Control Fraud

Lenders pay high priced attorneys who will “lie, misrepresent and violate the law” and will do most anything for the mortgage company they are employed by. That being said:

With all of the fraud and deception coming to light during the current foreclosure crisis, it is easy to overlook the massive fraud that has been a standard of the mortgage industry for years. When loans are originated, they are often quickly sold off to large investment banks, which then hire mortgage servicing companies to collect the monthly payments.

These servicers have ...

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posted by MORTGAGE AUDIT SERVICE November 30, 2008 11:49 PM

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What Makes a Loan Illegal and How Your Rights are Violated!

Consumer Damages and Remedies for Truth in Lending Act and Regulation Z Violations

The Truth in Lending Act TILA requires that creditors disclose credit terms and costs at the various stages of open- and closed-end credit transactions (i.e., solicitation, advertising, account opening, consummation, and monthly statements).

Section 1640 of TILA is the civil liability section. It states that creditors who violate any requirement imposed by TILA or Regulation Z are liable to the consumer for the total of all of the following damages that apply:

1) Any actual damages a consumer sustained as ...
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posted by MORTGAGE AUDIT SERVICE November 30, 2008 7:47 PM

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Top Ten Ways Mortgage Lenders Overcharge Homeowners

A survey by the Justice & Integrity Project's National Mortgage Complaint Center reveals the top ten mortgage fee abuses. The problem: in increasing numbers, mortgage lenders and mortgage brokers have overcharged the average U.S. homeowner. The Justice & Integrity Project's National Mortgage Complaint Center discovered the top ten mortgage fee abuses:

1. Yield Spread Premiums: Yield Spread Premiums were designed to increase the borrower's interest rate so that the lender/mortgage broker can compensate themselves for origination fees and other normal mortgage fees with little or no out of pocket cost ...
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posted by MORTGAGE AUDIT SERVICE September 28, 2008 8:00 PM

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Lenders Fraud on Consumer Borrowers

10/30/2007 Ninth Circuit Court

Wall Street Lender "Aided and Abetted"
Subprime Lenders Fraud on Consumer Borrowers

We get a new twist: “aiding and abetting fraud” liability of secured lenders to a bankrupt subprime lender. In a recent decision of great import, the Ninth Circuit has held that the lender’s lender can be stuck with huge tort liability—as a virtual co-conspirator in its borrower’s fraud upon consumers.

The Ninth Circuit Case
In re First Alliance Mortgage Co., 471 F.3d 977 (9th Cir. 12/8/06), First Alliance was a subprime mortgage lender to home-equity-rich borrowers ...
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posted by MORTGAGE AUDIT SERVICE August 24, 2008 9:03 PM

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