West Palm Beach, FL- MFI-Mod Squad, LLC, a company that investigates loan modification fraud, has issued a list of the twenty loan modification companies about which it has received complaints. The list includes companies that haven't been approved to charge an upfront fee and claim to offer a money-back guarantee. They have either failed to deliver a loan modification or refused to offer a refund to homeowners.
"Many people have been asking me to post a list of unreliable loan modification companies," says Steve Dibert, President of MFI-Mod Squad. "I'm happy to do so because it can help homeowners avoid scams."
The problematic loan modification companies on MFI-Mod Squad's list include the following:
· Green Credit Solutions
· Peoples First Financial
· United Law Group
· Excel Loss Mitigation
· Nations Choice
· USA Mortgage Aid
· Mortgage Assistance Center
· Bank Modifications, Inc
· Apply2Save
· AmeRestart aka Equinaire
· Choice Loans Consulting
· Samaritan Financial
· Resolutions Mortgage Group
· Federal Loan Modifications
· Mortgage Mitigation Clearing House
· Woosh.com aka Manhattan Mortgage
· Coastal Pacific
· New Beginnings Loan Modification Services
· North American Relief
• US Justice Foundation
All but Samaritan Financial and Mortgage Mitigation Clearing House are located in California. California-based loan modification companies must be approved by the Department of Real Estate (DRE) to charge upfront fees. You can only be exempt from DRE approval if your company is a law firm
Near the top of MFI-Mod Squad's list of the worst loan modification companies is Peoples First Financial, which is responsible for Massachusetts resident Jon Angers losing his home.
"He trusted them when they told him not to make his mortgage payment," says Mr. Angers' attorney, Glenn Russell. "He has since been foreclosed on and evicted from his home."
Glenn F. Russell, Jr. is located in Fall River, Massachusetts. He's a member of the Massachusetts and Connecticut Bar Associations, where he specializes in foreclosure defense, bankruptcy, personal injury, and divorce law. For more information, visit www.foreclosuresinmass.com, call 508-324-4545, or email russ45esq@gmail.com.
Miami: 305-851-2460 Metro Detroit: 248-841-8511 Orlando: 407-278-5733 Ft. Lauderdale: 954-607-2266 Northern MI: 231-622-7566 Tampa: 941-312-7620 West Palm Beach: 561-317-9978 Washington D.C.: 301-979-9577 Boston: 857-776-3030
MFI-MOD SQUAD TO BUST UP SHADY FORECLOSURE RESCUE AND LOAN MODIFICATION SCAMS
West Palm Beach, FL-Steve Dibert, founder of MFI-Miami, LLC, Florida's premier forensic mortgage fraud investigation and forensic mortgage auditing firm is launching MFI-Mod Squad, LLC.
MFI-Mod Squad is the only privately funded loan modification investigative firm in the United States. The goal of MFI-Mod Squad is to expose illegally run loan modification and foreclosure rescue companies and the people who run them. These firms convince desperate homeowners to pay them huge upfront fees by playing on home owner's fears when their real intent is to take the home owner's money and run. Many of these companies operate by doing business in states that have not adapted their laws to include loan modifications. They solicit clients in states outside their own even if the state where the homeowner lives has laws that govern loan modifications. This is done intentionally because they think the client won't know how to find them or they think a homeowner facing foreclosure does not have the funds to pursue them across state lines or in federal court. Some even use "Affiliates" or "Resellers" to collect the money for them in an attempt to shield themselves from prosecution. Some of these companies are even run by convicted felons who are barred from working real estate or lending.
"These people think they're smarter than you and they think they can get away scot-free," said Steve Dibert, Owner of MFI-Mod Squad, "I want to give homeowners the protection they need to protect themselves from kicked while they are down. Besides, a smart criminal knows you can steal more with a smile than you can with a gun!"
MFI-Mod Squad has three purposes.
First, to give homeowners a place on the Internet where they can educate themselves about loan modifications and loan modification companies so they can protect themselves from being taken advantage of. The website is in a blog format so homeowners can share their stories about loan modifications.
Second, MFI-Mod Squad wants to give homeowners a place where they can get help investigating unscrupulous loan modification companies. If a homeowner feels they have been conned by an unscrupulous modification company or feels the loan modification company is operating outside the law, MFI-Mod Squad will investigate the company for no charge.
Third, MFI-Mod Squad will publicly expose these unscrupulous companies and use the power of the Internet to shut them down. Once MFI-Mod Squad completes its investigation, the report will be posted on the website and a copy will be immediately sent to state and federal law enforcement officials and regulators for further action. Not all loan modification companies are bad or are breaking the law. There are good ones that work hard for their clients, play by the rules and are just as eager to force these people out of the industry as MFI-Mod Squad. Those companies will be promoted on the site and will be encouraged to contribute as will consumer advocates, attorneys and law enforcement.
About MFI-Mod Squad
Headquartered in Boynton Beach, Florida, MFI-Mod Squad, LLC is the only privately funded loan modification investigative firm in the United States. The goal of MFI-Mod Squad is to expose illegally run and shady loan modification companies and the people who run them. For more information, visit www.mfi-modsquad.com, contact 561-317-9978, or email steve@mfi-modsquad.com.
MFI-Miami, Florida's premier Forensic Mortgage Auditing firm is currently looking for experienced sales people in the Bay State as I prepare to officially launch MFI-Boston after the first of the year. I already have clients calling because of an article that appeared in the Boston Herald around Thanksgiving and I want to continue the momentum.
I am looking for people who have knowledge of lending and real estate. Candidates must have at least a 5 year track record in either real estate or mortgage sales.
All candidates will go through a criminal background check and a check with Commissioner of Banks, Mortgage Lender & Mortgage Broker Licensing to see if any disiplinary actions have been taken. Send Resumes and/or CVs to info@mfi-miami.com. Only candidates who submit resumes or CVs will receive responses.
If you need more information, you can check out MFI-Miami at www.mfi-miami.com.
MFI-MIAMI LAUNCHES MASSIVE INVESTIGATION INTO ILLEGAL FORECLOSURES IN 6 STATES
West Palm Beach, FL-MFI-Miami, LLC, Florida's premier forensic mortgage fraud investigation and forensic mortgage auditing firm is launching a massive investigation against several securities firms and banks for performing illegal foreclosures in 6 states. MFI-Miami is asking for homeowners who have lost their home in foreclosure from 2005 through 2008, to contact their offices immediately.
"Every day I get calls from homeowners in foreclosure and in nearly 85% of the cases, the lender cannot prove they have the legal standing to execute the foreclosure. It boils down to simple Real Estate 101," explained MFI-Miami CEO Steve Dibert, "If you don't own the note, you can't sell it, modify it, enforce it or collect payments on it."
This investigation will encompass homeowners in the following states; Florida, Maryland, Massachusetts, Michigan, New York, Virginia and will be covering foreclosure actions that were filed between 2005 and 2008.
"This lack of accountability by the lending industry has cost nearly 250,000 homeowners their homes in these 6 states alone," said Steve Dibert, "When we complete the investigation, we'll determine if the report will be handed over to the Attorney Generals of those 6 states or if the clients are eligible for some type of class action litigation in federal court."
Most of the cases that come across MFI-Miami's desk are exotic loans or sub-prime loans that have been transferred from servicer to servicer and from note holder to note holder. The problem was created by Wall Street firms who traded mortgage backed securities with each other. They would package mortgages in pools and sell them, repackage them and sell them again and again. Through this maze of trades and counter trades, the mortgage and the note are moved upstream but in no case are all of the transfers of ownership recorded in the local property records. Although a fund manager could offer a plethora of reasons as to why, the real reason is, fund managers wanted to save a few dollars by avoiding taxes and filing fees that would apply to each recording. Without recording these transfers in the public record, the right to enforce the mortgage and note is nullified because that recording is what proves ownership.
These cases are quite prevalent in non-judicial foreclosure states like Michigan because there is no judicial oversight of the foreclosure process. Because of this, many homeowners are losing their homes illegally and don't even know it. MFI-Miami has discovered that in most of these cases, the attorney representing the lender does inadequate due diligence when researching the transfer affidavits of the note while preparing a foreclosure action against a homeowner.
About MFI-Miami
Headquartered in Boynton Beach, Florida, MFI-Miami, LLC does strictly forensic mortgage auditing and mortgage fraud investigating. MFI-Miami is the only Florida mortgage auditing firm and only one of about five nationally that does their forensic auditing by hand. MFI-Miami looks for violations of RESPA, TILA, HOEPA, HMDA, FCRA, FACTA, the FTC Act, ECOA, FHA, FDCPA, and SCRA. MFI-Miami, LLC is also only one of a few firms that investigate the transfer of the securitization instruments of the client's mortgage. For more information, visit www.mfi-miami.com, contact 561-317-9978, or email info@mfi-miami.com
MFI-MIAMI LAUNCHES MASSIVE INVESTIGATION INTO ILLEGAL FORECLOSURES IN 6 STATES
West Palm Beach, FL-MFI-Miami, LLC, Florida's premier forensic mortgage fraud investigation and forensic mortgage auditing firm is launching a massive investigation against several securities firms and banks for performing illegal foreclosures in 6 states. MFI-Miami is asking for homeowners who have lost their home in foreclosure from 2005 through 2008, to contact their offices immediately.
"Every day I get calls from homeowners in foreclosure and in nearly 85% of the cases, the lender cannot prove they have the legal standing to execute the foreclosure. It boils down to simple Real Estate 101," explained MFI-Miami CEO Steve Dibert, "If you don't own the note, you can't sell it, modify it, enforce it or collect payments on it."
This investigation will encompass homeowners in the following states; Florida, Maryland, Massachusetts, Michigan, New York, Virginia and will be covering foreclosure actions that were filed between 2005 and 2008.
"This lack of accountability by the lending industry has cost nearly 250,000 homeowners their homes in these 6 states alone," said Steve Dibert, "When we complete the investigation, we'll determine if the report will be handed over to the Attorney Generals of those 6 states or if the clients are eligible for some type of class action litigation in federal court."
Most of the cases that come across MFI-Miami's desk are exotic loans or sub-prime loans that have been transferred from servicer to servicer and from note holder to note holder. The problem was created by Wall Street firms who traded mortgage backed securities with each other. They would package mortgages in pools and sell them, repackage them and sell them again and again. Through this maze of trades and counter trades, the mortgage and the note are moved upstream but in no case are all of the transfers of ownership recorded in the local property records. Although a fund manager could offer a plethora of reasons as to why, the real reason is, fund managers wanted to save a few dollars by avoiding taxes and filing fees that would apply to each recording. Without recording these transfers in the public record, the right to enforce the mortgage and note is nullified because that recording is what proves ownership.
These cases are quite prevalent in non-judicial foreclosure states like Michigan because there is no judicial oversight of the foreclosure process. Because of this, many homeowners are losing their homes illegally and don't even know it. MFI-Miami has discovered that in most of these cases, the attorney representing the lender does inadequate due diligence when researching the transfer affidavits of the note while preparing a foreclosure action against a homeowner.
About MFI-Miami
Headquartered in Boynton Beach, Florida, MFI-Miami, LLC does strictly forensic mortgage auditing and mortgage fraud investigating. MFI-Miami is the only Florida mortgage auditing firm and only one of about five nationally that does their forensic auditing by hand. MFI-Miami looks for violations of RESPA, TILA, HOEPA, HMDA, FCRA, FACTA, the FTC Act, ECOA, FHA, FDCPA, and SCRA. MFI-Miami, LLC is also only one of a few firms that investigate the transfer of the securitization instruments of the client's mortgage. For more information, visit www.mfi-miami.com, contact 561-317-9978, or email info@mfi-miami.com
West Palm Beach, FL-MFI-Miami, LLC, Florida's premier forensic mortgage fraud investigation and mortgage auditing firm is warning consumers facing foreclosure that the lender who is initiating the foreclosure action against them may not have the legal standing to do so. This also means the mortgage servicer may not be legally able to accept payments or negotiate a loan modification.
"It boils down to simple Real Estate 101," explained MFI-Miami CEO Steve Dibert, "If you don't own the note, you can't sell it, modify it or enforce it."
This is not just an isolated phenomenon. It is a nationwide plague that banks and lenders don't want to talk about. Homeowners in subprime loans are most susceptible because most subprime lenders did not service the loans they originated.
"Of the nearly 100 foreclosure clients who have come to me for help, nearly 85% of the lenders cannot prove in a court of law that they have the legal standing to enforce the terms of the mortgage and the scary thing is, the lenders know it before they even begin the foreclosure action and they don't care," explained Steve Dibert.
This creates a number of serious problems for the homeowner because if a homeowner goes into foreclosure and works out a loan modification with who they think is the lender, the real owner of the note could still initiate a foreclosure six months or a year later. The homeowner is left with costly civil litigation as their only remedy to keep their home.
The problem was created by Wall Street firms who traded mortgage backed securities with each other. They would package mortgages in pools and sell them, repackage them and sell them again and again. Through this maze of trades and counter trades, the mortgage and the note are moved upstream but in no case are all of the transfers of ownership recorded in the local property records. Although a fund manager could offer a plethora of reasons as to why, the real reason is, fund managers wanted to save a few dollars by avoiding taxes and filing fees that would apply to each recording. Without recording these transfers in the public record, the right to enforce the mortgage and note is nullified because that recording is what proves ownership.
"Basically Wall Street traded mortgage portfolios like kids trading baseball cards, explained Steve Dibert, "the only problem was, no one kept track of what mortgages were being sold to whom."
MFI-Miami is working with two clients in particular, Nickie Struthers of Bradenton, Florida whose mortgage that was originated by Quicken Loans of Livonia, Michigan appears to have been sold by Quicken Loans to two different servicing entities. Quicken sold the loan to EMC Mortgage in February of 2007 and then sold it a second time to LaSalle Bank of Troy, Michigan in June of 2008. Quicken Loans and LaSalle Bank refused to cooperate with MFI-Miami's investigation into this matter as did LaSalle Bank's attorney, Marshall Watson and Associates of Ft. Lauderdale, Florida. Mr. Watson's firm even attempted to block MFI-Miami and Ms. Struthers from having access to her file and now is attempting to launch a second foreclosure action against Ms. Struthers.
"If Quicken Loans, LaSalle Bank and their attorneys would co-operate with our investigation, it would avoid a lot of legal fees for all the parties involved because now Ms. Struthers has to retain legal counsel just to get access to documents that she has a right to have. These are copies Quicken Loans is legally mandated by federal law to give her when she signed her application and their refusal to co-operate just reinforces the impression they are hiding something," said Steve Dibert.
The second client is Cynthia King of Jamaica, New York whose lender, Deutsche Bank, began foreclosure proceedings against Ms. King and her husband in April of 2008. Deutsche Bank garnished her wages for her delinquent payments. The only problem was the mortgage Deutsche Bank was attempting to foreclose on and garnishing wages on was paid off in February of 2007.
"The crazy thing about this file was no one caught the fact the complaint had the wrong dollar amount, interest rate, or loan number," said Steve Dibert, "The bank, their attorney and the judge all missed it. MFI-Miami was the only one who caught it and with the help of Gerard Sweet at Foreclosure Hotline USA in West Babylon, New York, we were able to save the house."
About MFI-Miami
Headquartered in Boynton Beach, Florida, MFI-Miami, LLC does strictly forensic mortgage auditing and mortgage fraud investigating. MFI-Miami is the only Florida mortgage auditing firm and only one of about five nationally that does their forensic auditing by hand. MFI-Miami looks for violations of RESPA, TILA, HOEPA, HMDA, FCRA, FACTA, the FTC Act, ECOA, FHA, FDCPA, and SCRA. MFI-Miami, LLC is also only one of a few firms that investigate the transfer of the securitization instruments of the client's mortgage. For more information, visit www.mfi-miami.com, contact 561-317-9978, or email info@mfi-miami.com
MFI-Miami, Florida's premier Forensic Mortgage Auditing firm is currently looking for experienced sales people in the Bay State as I prepare to officially launch MFI-Boston after the first of the year. I already have clients calling because of an article that appeared in the Boston Herald around Thanksgiving and I want to continue the momentum.
I am looking for people who have knowledge of lending and real estate. Candidates must have at least a 5 year track record in either real estate or mortgage sales.
All candidates will go through a criminal background check and a check with Commissioner of Banks, Mortgage Lender & Mortgage Broker Licensing to see if any disiplinary actions have been taken. Send Resumes and/or CVs to info@mfi-miami.com. Only candidates who submit resumes or CVs will receive responses.
If you need more information, you can check out MFI-Miami at www.mfi-miami.com.
MFI-Miami now has a Field Representative to cover the Washington, DC Metro area, Virgina and Maryland! Our new Field Representative is Columbus Williams and he will be MFI-Miami's Regional Manager for the mid-Atlantic region of the US. His direct number is (301) 728-2634 or you can call the office number (301) 979-9577.
I am also in the process of creating MFI-DC which will cover all of Virginia, Maryland and DC.
Ft. Lauderdale: 954-607-2266 Northern MI: 231-622-7566
West Palm Beach: 561-317-9978 Massachusetts:
Tampa: 941-312-7620 Boston: 857-776-3030
MFI-MIAMI WAS FEATURED IN THE BOSTON HERALD FOR HELPING NORTHERN MICHIGAN COUPLE
Charlevoix, MI - MFI-Miami, LLC, Florida's premier mortgage fraud investigation and forensic mortgage auditing firm is proud to announce that on Monday, November 24, 2008, the Boston Herald did a profile on Steve Dibert and MFI-Miami for the work he did uncovering the fraud and deception that was committed against Bob and Mary Eveleigh of Charlevoix, Michigan. The article can be viewed at www.mfi-miami.com or:
MFI-Miami is in the process of wrapping up a two year investigation with a formal report for the Eveleighs that will be used in a federal lawsuit they plan on pursuing against the two mortgage brokers who masterminded this scheme, the title company, the straw buyer, and the two lenders involved in this transaction.
"Unfortunately, the Eveleigh's situation is quite common in Michigan," explained Steve Dibert, "As the economy got worse, these parasites came out of the woodwork to profit from the fears and despair of people facing foreclosure and have no problem thumbing their noses to the law. In this particular case, these parasites easily broke 15 federal laws when they put this transaction together."
Steve Dibert began working with the Eveleighs in September of 2006 while he was still running a branch office in Traverse City for a Detroit area mortgage broker.
"We initially approached Steve about doing a refinance. When he laid out all of the documents and said, ‘You know, what? Something isn't kosher here,' " said Mary Eveleigh, "It was a big eye-opener for me."
The Eveleighs are an example of how easy it is to fall victim to Predatory Lending. But they are also an example of how a consumer can save their home if they act quickly after discovering they are a victim.
Steve Dibert explains, "The Eveleighs may have been victims, but they are also an example of what a consumer is capable of doing when they stop being a victim and fight back!"
About MFI-Miami
Headquartered in Boynton Beach, Florida, MFI-Miami, LLC does strictly forensic mortgage auditing and mortgage fraud investigating. MFI-Miami is the only Florida mortgage auditing firm and only one of about five nationally, that do their forensic auditing by hand. MFI-Miami looks for violations of RESPA, TILA, HOEPA, HMDA, FCRA, FACTA, the FTC Act, ECOA, FHA, FDCPA, and SCRA. MFI-Miami, LLC is also only one of a few firms that investigate the transfer of the securitization instruments of the client's mortgage. For more information, visit www.mfi-miami.com, contact 561-317-9978, or email info@mfi-miami.com
There has been a lot of talk over the past few days about the new proposal by the Bush Administration to help stabilize the housing market by encouraging banks to modify loans for at-risk homeowners. The plan is to secure 31 million mortgages worth approximately $5 trillion which were underwritten by Fannie Mae and Freddie Mac and prevent them from going into default. The federal government took control of Fannie Mae and Freddie Mac in September when waves of foreclosures resulted in mounting losses on their portfolios. The Bush proposal mirrors what Citigroup, JPMorgan-Chase, and Bank of America have already been doing with their at-risk mortgages backed by Fannie Mae and Freddie Mac.
In order for homeowners to be eligible, they must meet the following criteria: they must be over 90 days behind on their mortgage payments, owe at least 90% of their homes current value, have not filed bankruptcy and it must be their primary residence.
Like a standard modification program, the payments would be adjusted either one of three ways; lower interest rates, longer repayment schedules or shifting the difference of the modified payment after being adjusted to below 38-40% of the homeowner's monthly income and amount of what the payment actually should be to the payoff of the loan.
James Lockhart, the director of the new Federal Housing Finance Agency which was created to oversee Fannie Mae and Freddie Mac, was quoted as saying, "We expect that it could significantly increase the number of modifications completed."
This all sounds good and seems to be getting a lot of positive media coverage. However, there are major issues with this plan that need to be resolved.
The main problem with this plan is the Bush Administration doesn't know if it will work because they are unable to determine the number of homeowners who will be eligible. Faith Schwartz, executive director of HOPE NOW was quoted in CNN Money as saying, "We think over time this going to affect a couple hundred thousand homeowners." This would equate to about 1% of the total number of mortgages Fannie Mae and Freddie Mac currently have in their portfolio.
Second, the majority of homeowners with Fannie Mae and Freddie Mac backed mortgages are not at risk because of the guidelines that Fannie and Freddie had in place for years. Unless the homeowner suffers a job loss or some other catastrophic event, his/her primary concern is being upside down and this plan does not address that issue.
Robert Van Order, an adjunct finance professor at the University of Michigan, who was chief economist for Fannie Mae until 2003, told the Detroit Free Press that he thinks the loan modification plans could be somewhat effective but it is not the solution to the housing problem. "There is an underlying problem they can't fix with this and that is people who are underwater on their mortgages. More people are going to be in trouble because they have negative equity."
It also doesn't address the issue of homeowners whose mortgages were not backed by Fannie Mae and Freddie Mac. Many of these toxic mortgages were acquired in the past two years when JP Morgan-Chase took control of Washington Mutual and their subprime division Long Beach Mortgage, Bank of America bought Countrywide and Merrill-Lynch (owners of sub-prime lender First Franklin), Citigroup bought Ameriquest and its wholesale operation Argent Mortgage. Many of these consumers were put in stated deals, adjustable rates, sub-prime loans or were improperly qualified for Option-ARM programs. These loans have a value of over $1.3 Trillion with over 7.5 million first lien sub-prime mortgages outstanding. Yet, these homeowners are considered low priority.
Another problem with the proposal is it encourages homeowners to destroy their credit ratings by telling them to fall 90+ days behind on their mortgage in order to get help. American Home Mortgage Servicing and Countrywide, among other sub-prime lenders are telling homeowners not to make their mortgage payments if they want a loan modification. Yet, they continue to report the delinquencies to the major credit bureaus.
There is a definite benefit to banks that modify these loans and on the surface it looks like a benefit to the homeowner. However, the banks are not promoting, and are not disclosing to the homeowner, the indemnification clauses in these agreements that hold the banks and servicers harmless for any fraud or misrepresentation that may have been used to induce the homeowner into signing the original mortgage. This means the homeowner is prevented from exercising their rights under TILA, RESPA and many other Consumer Protection laws.
One of first people to criticize this plan was Senator Chuck Schumer, D-NY, who says the plan does not go far enough. He said that too many of these loans won't be modified because the investors who own the loan will be able to block any arrangements made by the servicer and the homeowner. Schumer said, "These voluntary plans sound nice, but they don't do the job."
This initiative doesn't help the nearly one million people in non-Fannie Mae and Freddie Mac backed mortgages whose payments are set to recast by the end of the year or people who were victims of fraud-fraud that was committed by the same companies that now want to help these homeowners. With that said, the actions of the Bush Administration could be seen as something a bit more Machiavellian.
First, it gives the impression to the public something is being done when it really isn't. Perception is politics and politics is perception. What is more Machiavellian than the idea that deceit being a legitimate tool of statecraft? Henry Paulson was after all an assistant to Watergate conspirator and convicted felon, John Erlichman, who created, "The Plumbers" for Richard Nixon.
Second, the credit crisis has created an atmosphere of self-preservation with executives and managers of the major financial institutions. As mentioned, because these loan modifications have indemnification clauses in them, they are a way to insulate these executives from lengthy and costly litigation whose final judgment would rest in the hands of an unfriendly jury.
Right now, it is quite possible that juries are the homeowner's best and last hope to keep their homes. If lenders and banks are refusing to atone for their past sins by not offering all at-risk homeowners a viable opportunity to keep their homes then shouldn't lenders feel the wrath of the consumer?
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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