Federal Court Judges’ Frustration Grows With Mortgage Servicers

Discussion in 'Wall St. News' started by ByLoSellHi, Sep 3, 2009.

  1. This, along with the fact that Moody's and Standard and Poors are going to have to go to trial on their "rubberstamping" crap securities as AAA+ are some of the biggest legal tsunamis I've ever seen.

    We are in a weird time in American History, and no one can possibly know how deep these phenomena run.

    Bobbi Giguere had no luck in securing a loan modification from her mortgage servicer, Wells Fargo. For months, she had sent the bank the financial documents it requested to process her modification. But each time she called to check on the request, she was told to send her paperwork again.

    “I submitted the paperwork three times, and nothing happened,” said Mrs. Giguere, 41, who has a high school education and worked as restaurant manager before losing her job.

    On Thursday, something happened. She questioned a Wells Fargo official about the bank’s lack of response — under oath.

    The spectacle of a high-ranking banking executive being grilled by an ordinary homeowner was the result of an unusual decision by Judge Randolph J. Haines of the United States Bankruptcy Court to summon a senior executive from Wells Fargo to appear in Mrs. Giguere’s bankruptcy case.

    At the hearing, Judge Haines made it clear that he was acting out of concerns about Wells Fargo’s mortgage modification practices generally.

    “This is certainly not an isolated case,” he said. “The kind of story I hear from this debtor is one that I and other bankruptcy judges around the country are hearing over and over and over again.”


    Judges’ Frustration Grows With Mortgage Servicers

  2. America is facing an extreme crisis here, and in fact, the banks mortgage lenders are playing with fire in many cases, as they've lost track of much if not all of the original loan documentation that was used to securitize the original mortgage (and in fact, the mortgages have been bundled and sold many times over, in many cases, adding additional confusion to this situation).

    A judge in Manhattan has been throwing out foreclosure claims left and right when there's been a failure to produce the proper documentation.
  3. MattF


    I don't have that nypost article offhand, but in relation to that there was a law firm started up making a killing in that dept. as many servicers couldn't produce the original documentation, thus throwing the mortgage in question out.
  4. Yup, Federal Bktcy Judges even down here in Houston are demanding the originals, and not getting them.