Bankster of America

[marmar]

Bank of America Schemes to Evade Settlement Rules and Pocket Cash
Posted on Jun 29, 2013


Documents leaked by a bank insider show the company sold servicing rights to more than half a million mortgages to loan servicing companies in order to make a quick profit and avoid settlement requirements, leaving homeowners in the lurch and with fewer protections to avoid foreclosure, writes Salon reporter David Dayen.

The documents show that in January 2013, Bank of America sold more than half a million mortgages worth $93 billion to the parent corporation of Green Tree Servicing, a non-bank loan servicer based in St. Paul, Minn. Such companies are “buying up servicing rights to millions of mortgages, gradually positioning themselves to become the biggest companies in the space,” Dayen reports.

“These non-bank servicers, which process monthly payments and deal with foreclosures but do not originate loans,” Dayen continues, “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.”

Green Tree and other servicing companies Nationstar and Ocwen have worse track records for customer service and respect for borrowers than Bank of America. In a lawsuit against Green Tree Servicing, Leonard Law Office in Massachusetts claimed the servicer imposed illegal processing fees, “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.” ....................(more)

The complete piece is at: http://www.truthdig.com/eartotheground/item/bank_of_america_schemes_to_evade_settlement_rules_and_pocket_cash_20130629/