NEW:Bank of America whistle-blower details latest scheme to abuse homeowners, evade settlement rules

[dixiegrrrrl]

Has your mortage servicing been sold to Nationstar, or Ocwen, or Green Tree???

Turns out there WAS a reason BOA, Wells Fargo, Chase, etc big banks sold servicing rights to these companies.

These non-bank servicers, which process monthly payments and deal with foreclosures but do not originate loans, have an asset not available to their big bank colleagues: They haven’t yet been officially caught scamming customers.
Therefore, they are not a party to the various servicer settlements brought by state and federal regulators, and they need not submit to those settlement guidelines.
This includes rules like establishing a single point of contact for borrowers, stopping foreclosure operations when a modification is in process (ending what is known as “dual track”) and facilitating proper payment processing.

.....servicers like Green Tree, Nationstar and Ocwen have terrible reputations as among the worst servicers in the country (worse than Bank of America, if you can imagine that).
Among the charges Leonard Law Office made against Green Tree were claims that the servicer imposed illegal fees to process any kind of payment; failed to process mailed payments on time; harassed borrowers by calling them at all hours of the night and using abusive language to try to collect on debts; and delayed or denied timely modifications. These practices violate such federal laws as the Fair Debt Collection Practices Act, the Telephone Consumer Protections Act, and others.

.

.....Here’s where Bank of America comes in.
According to a bank insider, this is part of a deliberate effort to flip the servicing rights for a quick buck and get out from under the scrutiny of the various settlements. “Brian Moynihan, Ron Sturzenegger and Tony Meola are well aware of the reputations of these servicers,” says the insider, referring to Bank of America’s CEO and two high-level executives. “Ron is a dealmaker, not an operations guy. He was brought in to sell the stuff.”

Sturzenegger runs Bank of America’s Legacy Asset Servicing Division, $1 trillion or so of the shakiest loans at the bank. By selling off servicing rights, suddenly the bank doesn’t have to comply with settlement practices, nor do they have to increase staff for compliance purposes. So not only do they get some ready cash, they lower their labor costs.

http://www.salon.com/2013/06/28/new_bank_of_america_whistle_blower_emerges_more_customer_abuse/

[ms.smiler]

1. I read this article twice and I think it’s important.

I can’t help but wonder how far in advance this was planned.

There still won’t be any legitimate loan modifications for homeowners or legitimate foreclosures. And the banksters still avoid accountability while profiting from the sale of servicing rights.

Dixiegrrrrl, I think I read that you now have one of these disreputable servicers. As you may recall, my servicer is Nationstar and they filed two forged, invalid and robo-signed Assignments on my property and I sued them. (Please keep an eye on your local land records.)

It’s Ocwen, Green Tree and Nationstar who will be wrongfully foreclosing on homeowners in the future, all while Fannie Mae most likely owns the loans.

[felix_numinous]

2. Kick