Mortgage Loan Fraud by Major Lender/Underwriter?

[Shafted]

• November/December 2011: I asked a Prominent US Lending Institution about the possibility of a loan modification to our existing mortgage loan.

• December 2011/March 2012: I completed /submitted the Prominent US Lending Institution loan modification application.

• March 2012: Prominent US Lending Institution told me that the loan modification application was complete and in process.

• March 2012: I received a letter from Prominent US Lending Institution indicating that the servicing of our loan was being transferred to a New Loan Servicing Agent effective April 1, 2012.

• March 2012/April 2012: Upon my inquiry, Prominent US Lending Institution told me that the change of loan servicing to New Loan Servicing Agent would not interrupt consideration of the loan modification.

• April 2012: A New Loan Servicing Agent representative told me that we would have to start over with the loan modification application process by filling out New Loan Servicing Agent's forms.

• April 2012: A New Loan Servicing Agent representative told me that our loan had been sold to a new owner that would not consider loan modifications. I asked for the identity of the new owner and was told by New Loan Servicing Agent that they didn't know.

• April 2012: Several weeks later a New Loan Servicing Agent representative told me that our loan had been resold to a second new owner that also would not consider loan modifications. I asked for the identity of the second new owner and was told by New Loan Servicing Agent that they didn't know.

• April 2014: Unable to make loan payments since November 2012, we filed for Chapter 7 bankruptcy. Until November 2012 we had had a 100% flawless credit history for almost 25 years.

• June 2014: The creditors listed in the Chapter 7 bankruptcy documents cited Prominent US Lending Institution as the current owner of the loan.

• August 2014: The Chapter 7 process was completed and our debts were discharged.

• Late 2014: I made multiple attempts – one a certified letter dated December 16, 2014 with a return receipt request - to learn from Prominent US Lending Institution to whom they had sold the loan in April 2012 and from whom they repurchased it at some point before June 2014. I have received no reply other than the returned receipt for the certified letter.

• Late 2014/Early 2015: I have asked New Loan Servicing Agent on a number of occasions for a chain of ownership for our loan from March 2012 to the present. In return, I have received payment transaction histories but never a response regarding the chain of loan ownership.

• February 26, 2015: New Loan Servicing Agent told me that the owner of our loan would not consider loan modifications. In January and February 2015 I was told by several New Loan Servicing Agent representatives that it would have been unusual for a loan to have been sold by Prominent US Lending Institution, although changing loan service agents is not unusual.

SUMMARY: I believe that Prominent US Lending Institution has owned our loan all along and the change of service agent to New Loan Servicing Agent was a fraudulent ruse to avoid a possible profit-reducing loan modification.

 

[Betty3]

If you suspect fraud by the lender, you can contact the BBB and/or your state's Attorney General's Office. If you suspect fraud by the agt., you can contact your state licensing board.

 

[army judge]

SUMMARY: I believe that Prominent US Lending Institution has owned our loan all along and the change of service agent to New Loan Servicing Agent was a fraudulent ruse to avoid a possible profit-reducing loan modification.

Believing and PROVING, extremely divergent possibilities.

 

[Shafted]

If you suspect fraud by the lender, you can contact the BBB and/or your state's Attorney General's Office. If you suspect fraud by the agt., you can contact your state licensing board.

Thank you for the reply. The lender is one of the most prominent Wall Street banks in the US. I'll try my state's AG office and see what happens.

 

[Shafted]

Absolutely. I've been getting ID numbers of people I've been dealing with the past several months. I can't prove much from the earlier stages because I had no way to anticipate that I was being defrauded with the stories about the loan being sold to new owners. Perhaps all of conversations I had with the two institutions were recorded and can be accessed legally. What I need to know is if what happened (whether or not I can prove it) is an actionable offense. My recount of the events is 100% true.

 

[army judge]

Absolutely. I've been getting ID numbers of people I've been dealing with the past several months. I can't prove much from the earlier stages because I had no way to anticipate that I was being defrauded with the stories about the loan being sold to new owners. Perhaps all of conversations I had with the two institutions were recorded and can be accessed legally. What I need to know is if what happened (whether or not I can prove it) is an actionable offense. My recount of the events is 100% true.

A loan modification isn't a right. A lender can agree to a mod, but no law requires any lender to change the terms of the original contract.
Both parties agreed to the loan, and it takes the consent of both parties to modify the loan.
I have no doubt that the events are as accurate as humanly possible. None of that changes the fact that the lender isn't required to modify the loan in any manner.
If you can't pay the loan, the lender can simply foreclose.
If it were as easy as many people suppose, there would be fewer co0mplaints.
The note was signed at 12% interest, as an example. Ten years later, the rates are down to four percent.
Why on earth would the lender agree to to a refinance?
They mght agree to avoid foreclosure, and to keep a revenue stream.
They can also pick and choose those they wish to allow to refinance.
Nothing illegal in that, just as nothing illegal in one person paying 6% with a 600 FICO score, and another with a 798 FICO score paying 3.5%.

 

[Shafted]

Yes, I understand completely that a loan modification is not a right. This is why I said in my chronology that the Lender (deleted) agreed that I could apply for a modification through their process; i.e. they did have an application process for considering modifications. At no time was I told or did I believe that a modification was a done deal. My concern is that: 1) I was told by the Lender initially that I could apply; 2)then after a series of maneuvers on their and the new servicing agent's part I was told that the two consecutive new loan owners would not consider modifications; and 3) I discover a bit over two years later that the current owner of the loan (deleted) was the original one. I do not believe the loan was ever actually sold.

 

[Betty3]

If you still believe the lender and/or agt. didn't act in your best interest, report it as suggested previously. Good luck.

 

[army judge]

Yes, I understand completely that a loan modification is not a right. This is why I said in my chronology that the Lender (deleted) agreed that I could apply for a modification through their process; i.e. they did have an application process for considering modifications. At no time was I told or did I believe that a modification was a done deal. My concern is that: 1) I was told by the Lender initially that I could apply; 2)then after a series of maneuvers on their and the new servicing agent's part I was told that the two consecutive new loan owners would not consider modifications; and 3) I discover a bit over two years later that the current owner of the loan (deleted) was the original one. I do not believe the loan was ever actually sold.

None of that changes my useless answer. I'm just another dude on the net.
I see no cause of action which can sustain any legal action.
There are no magic words or potions that will allow you to obtain a loan mod.
You can attempt to REFI your loan via a different lender.
That could achieve a lower interest rate.
A REFI, these days isn't any easier to obtain, but you're free to pursue that option.

 

[disagreeable]

Your belief and properly produced records based on a subpoena and court case are two different things.