Monthly Archives: June 2012

What’s wrong with your loan? Jay Patterson, Certified Fraud Examiner, on a Mandelman Matters Podcast – Mandelman Matters

What’s wrong with your loan? Jay Patterson on a Mandelman Matters Podcast – Mandelman Matters.

Certified Fraud Examiner and forensic accounting expert, Jay Patterson, a member of the faculty at Max Gardner’s Boot Camp training programs for lawyers. In that photo above, Max is all the way on the left and just to the right of Max is Jay.


Jay Patterson teaches lawyers how to use the SEC Edgar database, among others, in order to find out who owns a loan. How to identify the trust a loan is in and find the Pooling and Servicing Agreement. how to figure out whether a trust is modifying loans and what the characteristics of the modifications are… and he can take apart the accounting of a loan to show where just about every nickel went.


Jay knows loans and what can go wrong with them, and in a field where scams are far too common, Jay Patterson is one of the most respected names in the industry nationwide. In 30 minutes, Jay and I talk about what homeowners should and shouldn’t do related to loan audits, securitization audits, and why accounting is an important, but often overlooked issue when fighting foreclosure.


SUNTRUST BANK – You’d evict a 76 year-old woman who lived in home for 44 years over $41? – Mandelman Matters

SUNTRUST BANK – You’d evict a 76 year-old woman who lived in home for 44 years over $41? – Mandelman Matters.


William H. Rogers… you’re the CEO, right?




If I could just have a moment of your time…




I’ll make this short…




I’m sure you’re a busy man…








Allow me to run it down for you…




The woman is 76 years old.








She lives alone.




This is her 44th year in her home.








You’re going to take her home because


you claim she’s short by $41 a month in income?
















Don’t look at me like I’m nuts, it’s your bank that said it.


I read the email your bank sent.




She’s been trying to get her loan modified for 4 years.








That would be… 48 MONTHS.


Biloxi Buzz for Saturday

Ex-Wall Street Trader Appears To Poison Himself In Court (VIDEO)

White House: Eric Holder Won’t Be Prosecuted For Contempt Charge

Wal-Mart Suspends Supplier Over Terrifying Working Conditions

School Determines Punishment For Bus Monitor Bullies

‘Put Women’s Rights Over Bishops’ Wrongs’

Two presidential candidates with the same healthcare law with same advisor

Jonathan Gruber,  an economist at MIT and was the advisor for both Governor Romney and President Obama on health care law, wrote an op-ed in the Boston Globe called ‘Massachusetts must remain a model on healthcare’ on why Massachusetts should remain a model on the healthcare in the state and as an example of a successful healthcare system as modeled in the Obama’s Affordable Care Act bill. Here is an excerpt:

But if we are to realize for the nation as a whole the types of gains we have seen in Massachusetts, the state must continue to lead. Part of that leadership means recognizing with some humbleness how we got here. Massachusetts was only able to pass our pioneering law because of enormous federal funding that paid more than half the costs of expanding insurance access. To suggest that other states simply follow our lead, but not to provide them the financial advantage that Massachusetts had in making this move, is simply disingenuous. (I’m talking to you, Governor Romney.)

That leadership also requires explaining to the rest of the country why our model works so well. It works because we have broad agreement that business, individuals, and the government should work together to craft an insurance system that works for all citizens. Businesses in Massachusetts have not abandoned health insurance coverage because of health reform; indeed, employer-sponsored insurance has grown much more rapidly here than in the rest of the nation since 2006. Individuals who were previously uninsured have contributed by buying insurance, often at the newly affordable rates provided by the state’s Health Connector. And the government has contributed by providing low-cost insurance alternatives for the poor, through its Commonwealth Care Program, and for everyone else, through the connector.

What Governor Romney constantly won’t admit that the same healthcare law in Massachusetts that he signed into law and his same adviser to his healthcare law is the same man who advised and crafted President  Obama’s healthcare law with the same ideas from Governor Romney’s healthcare bill. As Mr. Gruber points out in an article last year that the fight against Obama’s healthcare bill on Capitol Hill and in public is more political:

Gruber said Republicans were actually less opposed to the mandate, which is going to be under scrutiny by the court, than they were to other provisions of the health care bill, given that the mandate was an essentially conservative idea that had currency with conservative intellectuals in the early 1990s. I asked about the difference between this plan and the kind that was espoused by former House speaker Newt Gingrich back then (and, briefly, in May of this year).

“Zero difference,” he said. “This is, to my mind, the most blatantly obvious case of politics trumping policy I’ve ever seen in my life. Because this is an idea, that four or five years ago, Republicans were touting. A guy from the Heritage Foundation spoke at the bill signing in Massachusetts about how good this bill was.”

He credited Mitt Romney for not totally disavowing the Massachusetts bill during his presidential campaign, but said Romney’s attempt to distinguish between Obama’s bill and his own is disingenuous.

“The problem is there is no way to say that,” Gruber said. “Because they’re the same fucking bill. He just can’t have his cake and eat it too. Basically, you know, it’s the same bill. He can try to draw distinctions and stuff, but he’s just lying. The only big difference is he didn’t have to pay for his. Because the federal government paid for it. Where at the federal level, we have to pay for it, so we have to raise taxes.”


Government watchdog criticizes FHFA principal reduction delays

The Government Accountability Office found principal reduction would help some struggling homeowners and criticized the Federal Housing Finance Agency for delaying a decision to involve Fannie Mae and Freddie Mac in the effort, according to a report released Friday.

“Given the December 31, 2013, deadline for entry into a HAMP permanent loan modification and the lead time required for the enterprises to implement a principal forgiveness program, it is critical that FHFA take the steps needed to expeditiously make a decision about allowing the enterprises to engage in HAMP principal forgiveness modifications,” the GAO said in its report.

Read on.

Wells Fargo threatens foreclosure leader Archbishop King’s home – auction postponed again to July 20

Wells Fargo threatens foreclosure leader Archbishop King’s home – auction postponed again to July 20.


Update: The auction has been postponed once again to July 20.

Just when you felt safe in your home, here comes another shark attack! Wells Fargo Bank – that shark – seems poised to bite off your leg with no warning

We received late word tonight, Wednesday, June 20, that, despite the verbal promise from Wells Fargo Foreclosure Specialist Jamie Gyamfi to Archbishop Franzo King to extend his sale date to July 21, the bank will attempt the sale tomorrow, June 21, anyway.

Ms. Gyamfi gave a verbal extension to Archbishop King so an appraisal could place him in a program to save his home. The day following, when the appraiser completed the job, he told Archbishop King that Wells Fargo would let him know the results in three days. The bank, however, has not notified him. Nor have they put in writing the extension date promise.

Both verbal and written contracts are binding. Additionally, Archbishop King understands the law states that, for 30 days following such a promise or contract, the sale can’t resume.
Archbishop King suspects the bank could be engaging in a form of “dual tracking” where one department makes a promise to work with the homeowner while another sends auctioneers to points of sale like San Francisco City Hall and, unknown to the owner, auctions off the home.

After Barclays, HSBC, RBS, UBS and Citigroup also probed, says UK Treasury chief

Four more global banks are being investigated for the alleged financial market manipulation that led to fines of $453 million against Barclays Bank, British Treasury chief George Osborne said Thursday, causing stocks in those groups to plummet.

Osborne said Citigroup in the U.S., Switzerland’s UBS, and Britain’s HSBC and Royal Bank of Scotland were also being probed for allegedly providing false figures on key interest rates upon which mortgages and consumer loans are priced.

On Wednesday, U.S and British regulators imposed the fines on Barclays for manipulating the interest rate — the London interbank offered rate (LIBOR) — to its advantage between 2005 and 2009.

The banks’ share price fell sharply as investors priced in new hefty fines. By midday in London, Barclays shares had fallen 16 percent, RBS nearly 13 percent, HSBC 4 percent and Lloyds Banking Group 7 percent. In premarket trading in New York, Citigroup shares were down 1.9 percent.

“Banks were clearly acting in concert,” said Andrew Tyrie, a British lawmaker, who is also chairman of the influential Treasury Committee in the House of Commons. “I fear it’s not going to be the end of the story, that we are going to find that other banks have been involved.”

Read on.

News Flash: It is Illegal for Debt Collectors to Stalk Debtors on Facebook or Threaten to Kill Their Dogs

Even a polite call from a debt collector could ruin your day — but imagine if a collector called you names, swore at you, stalked you on Facebook or even threatened to kill your dog.

Bad behavior by debt collectors is on the rise: in 2011, theFederal Trade Commission (FTC) received more than 180,000 consumer complaints regarding abusive debt collection practices, almost 40,000 more than the previous year. “It was an unprecedented number,” says Thomas Pahl, assistant director of the division of financial practices for the FTC. And in 2012 so far, Pahl says: “Consumer complaint numbers continue to be very high.”

The increase probably results from the bad economy combined with the Federal Trade Commission’s stepped-up enforcement of debt collection practices, Pahl says. For example, in 2011, the agency filed a lawsuit against a California debt collector, hired by a funeral home, who threatened to dig up the body of the debtor’s daughter — and also to shoot her dog. “The FTC has been more active in bringing cases, so there’s more awareness that people can complain to us,” Pahl says.
However, a growing number of consumer complaints does not mean that bad behavior is rampant in the industry, says Mark Schiffman, vice president of public affairs for ACA International, a debt collector trade association that trains its members to comply with debt collection laws. “It’s really only a tally of complaints to the FTC,” Schiffman says. “Someone might say ‘Joe’s Collection Agency called me at noon on a Tuesday and I didn’t like it.’ That’s a complaint, but [the debt collector] didn’t do anything wrong.”

Read more:

Biloxi Buzz for Friday


Future Of Rupert Murdoch’s Newspapers In Doubt

Democrats Face Long Road To November Despite Health Care Victory

House Votes To Hold Attorney General In Contempt

Reverse Mortgage Foreclosures On The Rise, Seniors Targeted For Scams

Reverse mortgages, a lifeline for seniors struggling to pay bills in allowing them to turn home equity into cash, are entering into foreclosure at an “alarming” rate, Consumer Financial Protection Bureau Director Richard Cordray said Wednesday.

One out of every 10 seniors with a reverse mortgage is in default or foreclosure, Cordray said in a conference call with reporters on Wednesday timed to coincide with the release of a reverse mortgages report prepared for Congress.

The agency also found that seniors often don’t really understand the terms of the loan, a problem exacerbated by deceptive mailings and other advertisements, Cordray said.

“We will work with our partners at the federal, state and local level to root out these kinds of scams,” Cordray said. He described one flier that portrayed a reverse mortgage as a “government benefit,” which is wrong, and that contained “blatantly false information about loan repayment options.” He did not go into further detail about who sends out these notices but said that the agency has authority to ensure that the reverse mortgage market works well for consumers.

Reverse mortgages let homeowners older than 62 borrow against the equity of their home without their having, in turn, to make any loan payments, provided that they stay in the house. This type of mortgage is traditionally structured so that the loan balance will gradually increase over time. Lenders, such as MetLife bank, which is currently the biggest issuer of these loans, then own a greater and greater stake in the property. Borrowers can stay in their home even if the loan balance exceeds the home’s value, but they are still responsible for taxes and insurance payments throughout the process. When a borrower dies, the heir of the estate sells off the home and repays the federally insured loan and keeps what is left over.

Read on.