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IBM is now in the Short Sale Business as LBPS...

Reblogger Chris Webster
Services for Real Estate Pros with Island Palms Realty

Original content by Bryant Tutas BK607690

Florida Real Estate Broker.......Lender Business Processing Service.  Not quite sure how long they have been offering their servies to lenders but I have just had my first experience with them this week. In fact, I am on hold with them as I write this article. I've been on hold for over 2 hours!!!

I wrote a post a few weeks back about receiving Short Sale approval from Chase in 5 days. My approval was good until August 23rd. I had a really great Chase negotiator by the name of Gregory Williams. Mr. Williams is awesome at what he does and always responded to me very quickly. I emailed him last Friday asking for an extension of a couple days so we could get the transaction closed. He called me immediately to let me know the file had been sent over to LBPS and Chase had nothing else to do with it. YIKES!!! This is NOT what you want to hear 2 days prior to closing!!

Anyway, like the good little Broker I am, I did not let it derail me and instead just picked up the phone and called LBPS. That's when the fun and games began. I have now spent a total of 6 hours on hold this week and still have not sorted anything out. In fact, that 6 hours has been spent doing nothing more than holding to confirm that my LBPS 3rd Party Authorization has been received and approved!

I fear this is going to be a very painful experience. While I was writing this article (still on hold) I received an email from one of my other Sellers to let me know his loan was also just sold to LBPS. Oh well....no one ever said our jobs were supposed to be easy. I guess I best figure out the LBPS system!

Here's some info put out by IBM LBPS.

Folks, if you have a loan being serviced by IBM Lender Buisness Processing Service (LBPS) and are facing foreclosure, PLEASE contact me so I can help.

Are you facing foreclosure in Florida?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 
Anonymous
Caroline Pratt

Please contact me regarding the IBM LBPS foreclosure. We have a sale date of 12/13/2010. Thank you!

Nov 15, 2010 04:37 AM
#1
Anonymous
April

I googled LBPS foreclosure process and your article popped up.

My mother and I own and occupy a townhouse in West Palm Beach, FL.  LONG STORY up until this point, but the current situation is that LBPS has denied a mod and is starting foreclosure.  We'd prefer to keep the place, but would be open to short sale. We have NO money to speak of and keep getting attorney notices in the mail.

I have questions and would welcome any help you would be able to provide.  Thank you!

Jun 02, 2011 02:17 AM
#2
Anonymous
Concerned Citizen

Why and How does IBM enter the US mortgage meltdown?

 

IBM, through its LBPS newly renamed “Seterus, Inc” make-shift “mortgage” companies, buys into the US Mortgage Mess by deploying its information gathering capabilities.

 

IBM has a bad history of exploiting dangerous political situation: Research proves IBM’s role in the Holocaust during World War Two when it deployed its technology to harness and organize the Holocaust by Nazi Germany, for which it has been sued.

 

The US government should not be aiding and helping IBM reap profits. Instead, the US Justice Department should investigate IBM’s violation of Human Rights and not allow IBM to enter the field of foreclosures that contributes to more social dislocation and homelessness at a time when more compassion and humanity is required, something that IBM has proven it lacks.

 

Background, see:

 

In October, 2007, IBM quietly launched its entry into the newly melting US mortgage industry, see:

http://www-03.ibm.com/press/us/en/pressrelease/22445.wss  “Press room Press releases: IBM Delivers New Offerings to Transform Lending Capabilities for the Mortgage Industry: New Point-of-Sale (POS) Capabilities and Loan Origination System (LOS) Enhancements Deliver on IBM's Vision for Next Generation of Loan Fulfillment. ARMONK, NY - 15 Oct 2007: IBM (NYSE: IBM) today announced that it will launch a new set of hosted multi-channel Point of Sale (POS) offerings that will enable lenders to better manage their interactions with mortgage brokers and consumers…”

 

By March 2011, the relationship between IBM and Fannie Mae becomes a topic of public discussion, see: National Mortgage News: http://www.nationalmortgagenews.com/blogs/hearing/fannie-ibm-outsourcing-1024030-1.html “March 25, 2011 By Paul Muolo [Author of ‘Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis’ John Wiley & Sons, 2008 http://www.chainofblame.com/authors/ ] “Fannie, IBM, and Outsourcing, An Update”

Fannie Mae was kind enough to give National Mortgage News some guidance on what's going on regarding all those rumors we've been hearing about the GSE outsourcing some of its technology chores supposedly to IBM. A spokeswoman for Fannie confirmed that there is a 'request for proposal' out regarding the matter, but said that IBM is not the "leading bidder" on the contract. She would not name the other bidders, and would not even confirm that IBM is still in the running. As for what exactly Fannie plans to outsource in the technology space, she would offer no guidance there either. At this point we know that IBM's servicing division is one of at least five subservicers handling 'high touch' product for the GSE -- a lot of it. How much is IBM's servicing unit processing for Fannie? The spokeswoman would not say. You might think IBM would want to clarify the matter but Big Blue ain't talking either. Both firms are publicly traded, but Uncle Sam owns most of Fannie…”

 

By September 2011, now renamed “Seterus, Inc” its terrible record with the US public it’s supposed to serve, makes its mark, see:

 

Origination News  http://www.originationnews.com/blogs/hearing/silence-ibm-servicing-unit-1026595-1.html  The Big Silence at Big Blue's Servicing Unit" (September 16, 2011).  By Paul Muolo [Author of ‘Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis’ John Wiley & Sons, 2008 http://www.chainofblame.com/authors/ ] I often wonder if the Treasury Department—which owns Fannie Mae—has actually tried to call (on the telephone) Seterus, the servicing division of IBM that the GSE is apparently using to handle its lousy loans. As reported by the National Mortgage News website on Friday, it appears that Seterus was awarded a chunk of the $73 billion MSR package that Fannie bought from B of A...” and at http://www.mortgageservicingnews.com/blogs/hearing/complaints-ibm-servicing-unit-1026617-1.html   More Complaints for IBM's Servicing Unit (September 19, 2011) By Paul Muolo This past weekend we published a blog about how hard it was for customers and members of the media to contact Seterus, the residential servicing division of IBM. Over the weekend, one veteran mortgage banking executive who we've known for years weighed in on the matter. He did not want to be identified by name, but said that Seterus was recently given his loan to service. This is what he had to say: “My loan was sold to them and we didn't receive any notice from the old lender.  I tried to reach them and forget it!” A few months back, a family member of mine, who had a loan with Chase, suddenly found Seterus as his servicer. The first thing Seterus did was to hike his escrows…”

 

See similar discussions:

 

Landlord Success:

http://www.landlord-success.com/mortgage/lbps-nonsense#comment-42009

 

"On September 8th, 2011, HAMP MAN said:

Let me tell you some background.

This company is a subprime servicer. Servicer’s work on mortgage loans: They collect money from borrower and remit to trustee. If they cannot collect the money they foreclose and liquidate the property to still remit money to the trustee for the investors. They make a % of the payment or liquidation process. That’s all they do. Think about a dog waiting on your front door. It will do its job as long as you feed it. Investor’s love these dogs (servicers). Subprime servicers deal with impaired credit borrowers. Bankruptcy foreclosures are common stories here.

Some history now:
SETERUS was IBM LBPS. (change 2011)
IBM LBPS was Bank of America Wilshire Credit Corporation. (change 2010)
Bank of America Wilshire Credit Corporation was Merrill Lynch Wilshire Credit Corporation. (change 2009)
Merrill Lynch Wilshire Credit Corporation was Wilshire Credit Corporation. (change 2004)
Before that they were bankrupt in 1998 and came out of BK in 2003.
They had a CEO, Andrew Wiederhorn, who went to jail for some time. http://en.wikipedia.org/wiki/Andrew_Wiederhorn

Their technology:
Their servicing platform is a computer program called PULSE, which is written in an archaic language that I cannot even recall. There are only two people who know how to maintain it. One got fired in 2007 but was brought back because no one else could fix the issue that shut down the company for a day. It is a blue screen with no keyboard input. Its only competitor is Bloomberg screen (LOL).

Their people:
People in general are not competitive with exceptions. There are some efforts to revitalize the company within the mid-management team but they are always shut down by top management. It doesn’t have a good culture nor a good work ethic.

These are my observations of this company. God help whoever deals with them."

----------------

 

This is therefore a call for the media to be made aware and the political leadership to focus in on this sordid drama by one of America’s leading INFORMATION TECHNOLOGY corporations involving itself in the field of mortgages at a time of crisis when it should stay out given its past records, as outlined below:

 

A CALL FOR THE US GOVERNMENT, through its FannieMae and FreddieMac subsidiaries, TO BOTH DROP ITS SUPPORT FOR IBM-Seterus and instead INVESTIGATE and prosecute IBM for past crimes against humanity!

 

IBM-Seterus should NOT be collecting money on behalf of the US government's mortgage companies, they should be paying legitimate reparations instead!!!

 

People ask what the heck is IBM-Seterus, a computer company, doing in the mortgage management and foreclose business?

 

It should not be any surprise that IBM-Seterus should get into this game of using cutting-edge TECHNOLOGY hunting down mortgagees and forcing them to cough up or be foreclosed because IBM has a long history of using its stealthy technology ruthlessly to hunt down people in distress, and this should be made known.

 

Start off by reading the key background information at: http://www.ibmandtheholocaust.com/ “IBM and the Holocaust: The stunning story of IBM's strategic alliance with Nazi Germany -- beginning in 1933 in the first weeks that Hitler came to power and continuing well into World War II. As the Third Reich embarked upon its plan of conquest and genocide, IBM and its subsidiaries helped create enabling technologies, step-by-step, from the identification and cataloging programs of the 1930s to the selections of the 1940s.

 

Only after Jews were identified -- a massive and complex task that Hitler wanted done immediately -- could they be targeted for efficient asset confiscation, ghettoization, deportation, enslaved labor, and, ultimately, annihilation. It was a cross-tabulation and organizational challenge so monumental, it called for a computer. Of course, in the 1930s no computer existed.

 

But IBM's Hollerith punch card technology did exist. Aided by the company's custom-designed and constantly updated Hollerith systems, Hitler was able to automate his persecution of the Jews. Historians have always been amazed at the speed and accuracy with which the Nazis were able to identify and locate European Jewry. Until now, the pieces of this puzzle have never been fully assembled. The fact is, IBM technology was used to organize nearly everything in Germany and then Nazi Europe, from the identification of the Jews in censuses, registrations, and ancestral tracing programs to the running of railroads and organizing of concentration camp slave labor..."

 

Wikipedia has a key article about a key book that researches all this further: http://en.wikipedia.org/wiki/IBM_and_the_Holocaust “IBM and the Holocaust” that should open everyone's eyes. Just read these nuggets:

 

"[The book] tells the story of IBM's conscious involvement — directly and through its subsidiaries — in the Holocaust, as well as its involvement in the Nazi war machine that murdered millions of others throughout Europe.

 

"Mankind barely noticed when the concept of massively organized information quietly emerged to become a means of social control, a weapon of war, and a roadmap for group destruction.... Hitler and his hatred of the Jews was the ironic driving force behind this intellectual turning point. But his quest was greatly enhanced and energized by the ingenuity and craving for profit of a single American company and its legendary, autocratic chairman. That company was International Business machines, and its chairman was Thomas J. Watson." [Edwin Black, IBM and the Holocaust: The Strategic Alliance between Nazi Germany and America's Most Powerful Corporation. Second paperback edition. Washington, DC: Dialog Press, 2009; pg. 7.]...

 

"Since the advent of the Third Reich, thousands of Jews nervously assumed they could hide from the Aryan clause.

 

"But Jews could not hide from millions of punch cards thudding through Hollerith machines, comparing names across generations, address changes across regions, families trees and personal data across unending registries. It did not matter that the required forms or questionnaires were filled in by leaking pens or barely sharpened pencils, only that they were later tabulated and sorted by IBM's precision technology." [Edwin Black, IBM and the Holocaust: The Strategic Alliance between Nazi Germany and America's Most Powerful Corporation. Second paperback edition. Washington, DC: Dialog Press, 2009; pg. 107]."

 

The issue has been alive for a decade already and remains unsettled, see http://news.cnet.com/2009-1082-269157.html “Probing IBM's Nazi connection: Since its publication in February, Edwin Black's book ‘IBM and the Holocaust: The Strategic Alliance Between Nazi Germany and America's Most Powerful Corporation’ has stirred unprecedented controversy among students of the Holocaust, American enterprise and information technology." (CNet.com, 2001-9)

 

It is not too difficult to see that if one changes the words "Jews" with "mortgagees" having some trouble in these tough times, that it makes perfect sense that IBM-Seterus, a company with a long history of hunting people down, lining up and even “creating” documents from all sorts of directions, and then using them to deadly effect to create millions of homeless, should now be in the forefront of serving the Banksters as they lunge for people's homes.

 

It is an even greater scandal, that the US government through its total control of Fannie Mae and Freddie Mac should hire companies like IBM-Seterus to do its dirty work of tracking down citizens in the same manner that the Germany used IBM's technology to hunt down Jews and others who then had no place to hide.

 

Shame on IBM-Seterus and shame on any bank or company that uses them.

 

P.S.

 

Not just Jews but others have also sued IBM, see http://www.business-humanrights.org/Categories/Lawlawsuits/Lawsuitsregulatoryaction/LawsuitsSelectedcases/IBMlawsuitHolocaustclaimbyGypsies “IBM lawsuit: Holocaust claim by Gypsies (Business & Human Rights, 2002) and http://www.pcworld.com/article/41222/ibm_faces_suit_over_naziera_ties.html “IBM Faces Suit Over Nazi-Era Ties: Holocaust survivors claim company provided punch-card systems used in camps."

 

P.P. S.

It is also no wonder that IBM-Seterus has just bought "Toronto-based Algorithmics" and in light of the above you can understand what they have in mind, more ruthless computerized hunting of mortgagees in their cross-hairs. See:

 

Housing Wire:

 

http://www.housingwire.com/tag/seterus


"Friday, September 2nd, 2011

 

IBM mortgage servicing division to benefit from Algorithmics acquisition

Armonk, New York-based IBM (IBM: 186.62 0.00%), which offers mortgage servicing through its Seterus division, agreed to acquire Toronto-based Algorithmics, a risk analysis firm, for $387 million.

The  firm provides software and advisory services used by banks, investment and insurance companies to assess risk and ensure compliance with regulations.

IBM said the acquisition "expands IBM's business analytics capabilities in the financial services industry by helping clients quantify, manage and optimize their risk exposure across a range of financial risk domains."

In May, IBM rebranded its mortgage servicing division to Seterus from IBM Lender Business Process Services. The speciality servicer is based in Beaverton, Ore.

The mortgage servicing division actively participates in the Home Affordable Modification Program to help distressed borrowers.

The acquisition, which is pending per the agreement, mirrors outsourcing giant Accenture's (ACN: 57.39 0.00%) agreement to buy residential and commercial mortgage processing services firm Zenta earlier this month. That deal will grow Accenture's ability to provide business streamlining services and customer operations toclients in the mortgage lending and servicing industries, as well as real estate investment trusts.

Write to: Kerri Panchuk.

After going with the “LPBS” name, the bogus name “Seterus, Inc” further covers up the outward “apparent” connection to the IBM brand name that owns them.

 

IBM rebrands mortgage servicing division

 

 

Thursday, May 26th, 2011

International Business Machines (IBM: 186.62 0.00%) will rebrand its mortgage servicing division as Seterus on July 9, according to a notice sent to affiliates.

IBM Lender Business Process Services, as it is known now, is a specialty servicer based in Beaverton, Ore.

In January 2010, IBM began negotiating with Bank of America (BAC: 6.28 0.00%) to acquire Wilshire Credit Corp. The following March, IBM closed on the deal. BofA kept the servicing rights to the portfolio. IBM was able to build out its servicing capabilities with the Wilshire operating platform and the 900 employees who worked there.

It participates in the Home Affordable Modification Program and offers private workout options to distressed borrowers as well, including short sales.

"Over the last year, as a new member of the IBM family, we have seen this organization find itself and create its own character as a proud member of IBM. You have worked hard to improve the customer experience; you have done amazing things to help homeowners," according to the notice.

IBM will begin a campaign to push the new Seterus brand over the next few weeks, the notice said.

Write to Jon Prior.

Follow him on Twitter @JonAPrior."

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For more general information about the current state of Mortgage Servicing Fraud in the USA please see: http://www.msfraud.org/

Oct 27, 2011 04:01 AM
#3