Daily Archives: December 6, 2015

Ocwen Financial, homeowners targets of mortgage fraud

State Attorney General Hector Balderas is warning of a “dangerous new scam” that is targeting New Mexicans who are having trouble paying their mortgages.

“Do not pay Ocwen mortgage payments by Moneygram in response to ‘Making Home Affordable’ offer letters or calls,” he said in a news release, referring to Ocwen Financial Group. “This is a scam … ”

How it works: Consumers get a letter offering them a “trial payment plan” or loan modification, and they’re given a phone number to make the payments.

“Ocwen has investigated the matter and determined that third-parties are posing as Ocwen employees to obtain payment from consumers,” the alert says.

Beware if you get a call about this. The callers at times will spoof an Ocwen phone number, often in the 214 area code, Balderas said. Consumers who have questions about their home loan can contact the real Ocwen at 800-746-2936. If you’re hit by the scam, call the AG’s Consumer Protection Division at 505-222-9100 or 1-800-678-1508.

Read on.

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Cartoon: “Pass The Buck”

Open Thread - "Pass The Buck"

Credit: Holbert / Boston Herald / 2013

Mortgage borrowers receiving money for wrongful foreclosure

— North Carolina’s attorney general says about 1,400 mortgage borrowers will receive payments of nearly $2 million from SunTrust, which wrongly foreclosed on them.

Attorney General Roy Cooper said in a news release Friday that eligible North Carolina consumers who had mortgages serviced by SunTrust, lost their homes to foreclosure between January 1, 2008, and December 31, 2013, and applied for relief by the June 4 deadline should receive their payment in early December.

Checks of about $1,330 each are being mailed to 1,454 affected borrowers in North Carolina.

Read on.

Even in fraud cases, Wells Fargo customers are locked into arbitration

Open a checking account at Wells Fargo Bank and you’ll have to sign an agreement that says you can’t sue the company — that any disputes have to go to a private arbitrator, not to court.

But what if a Wells Fargo employee then creates a separate, bogus account in your name?

It turns out that arbitration still rules the day.

As the San Francisco banking giant faces allegations that its employees regularly create fake accounts to boost sales figures, courts have repeatedly turned away consumers trying to sue over the issue.

Judges in California and federal courts have ruled arbitration clauses signed by customers when they opened legitimate accounts prevent them from suing even over allegedly fraudulent accounts created without their knowledge.

Those rulings have flabbergasted attorneys bringing lawsuits against Wells Fargo, the subject of a 2013 Times investigation that found a high-pressure environment prompted employees to open unwanted accounts.

“It’s laughable to any logical person,” said Michael P. Kade, a Los Angeles attorney who unsuccessfully argued such a case in L.A. County Superior Court.

Read on.

‘Bankrupt’ Mortgage Lenders Unveil The Zero-Money-Down “Friends-And-Family” Mortgage

Zerohedge:

Ripping straight from the pages of the “those who failed to learn from history are doomed… period” book of centrally-planned desperation to maintain American Dream ‘wealth’ by unsustainably levitating home prices, the government’s bankruptcy mortgage guarantors have just announced “HomeReady Mortgages.” These so-called ‘enhanced affordable lending products – provided by the US taxpayer – enable 97%-plus Loan-to-Value loans to borrowers based not on their income (which is too low) but on “non-borrowers” like extended family or children! “Whatever it takes” to maintain the illusion of normalcy and hand out more money just reached peak Einsteinian insanity.

 

In its latest ‘offering’ letter for HomeReady Mortgages, Fannie Mae offers what it calls ‘innovative underwriting flexibility’…

  • Offers an innovative new feature that supports extended family households: will consider income from a non-borrower household member as a compensating factor in DU to allow for a debt-to-income (DTI) ratio >45% to 50%.
  • Allows non-occupant borrowers, such as a parent.
  • Permits rental income from an accessory dwelling unit (such as a basement apartment).
  • Allows boarder income (updated guidelines provide documentation flexibility).

In other words, as KARE11 tries to defend…

“It could be a credit problem, it could be an income problem, it could be an employment history problem, it could be a debt-ratio problem. There are a number of things that can affect a person’s situation,” said Chris O’Connell, a licensed mortgage loan officer with Nations Reliable Lending in Edina.

 

Mortgage giant Fannie Mae recognizes these hardships, and in response will soon offer a new kind of mortgage with new rules designed to add flexibility for borrowers.

 

“They’ve recognized that households have changed and our guidelines need to change with it,” said O’Connell.

 

HomeReady will consider incomes from others planning to live in the house without being a borrower on the loan.

 

This means, if you live with parents, siblings, working children or maybe a roommate, as long as they make 30 percent of the household income, Fannie will include their money to help you qualify for a loan.

 

These are being called “non-borrowers” by Fannie. 

Non-borrower backed mortgages!!??

Also, non-occupants of the home can add further income to the mortgage. Perhaps parents living elsewhere but willing to help pay the loan.

 

“The typical household has changed now. It’s not the household we used to know 20 years ago because there’s a lot of extended family. Parents are living with the family, children are staying home longer, and it allows you to consider their income too,” said Tousley.