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Archive for the ‘Green Tree Servicing’ Category

Firms Will Be Embarrassed

Posted by CM on November 29, 2009

Yes, you read the heading correctly.  It seems that Obama and Geithner can’t seem to get our beloved mortgage servicers to effectively modify delinquent home loans.  That is one heck of a surprise!  We all know from experience that mortgage servicers will stop at nothing to get a foreclosure processed. 

On Monday, Obama will initiate a new campaign aimed at embarrassing mortgage firms (I hope mortgage servicers are included) into creating permanent modifications that reduce monthly payments.  Unfortunately, reducing principal balances was not mentioned in the article

Those servicers who have not made enough permanent modifications will be called out and embarrassed.  Recall that Geithner’s entire idea with his monthly mortgage servicer performance reports was to embarrass those firms that haven’t made many modifications.  That hasn’t worked very well and now it seems Geithner and his team is trying another embarrassment model for the servicers.  I don’t know about you, but when all the administration can think of is different ways to embarrass mortgage servicers, I don’t hold out much hope for this new campaign. 

A guess a bit of a change to HAMP is that the puny incentives ($1000 per modification) will not be paid until the modification is permanent and monthly payments are reduced.  To date, only 2,000 out of 500,000 or 0.4% of loans have been permanent modifications1.  If that is the only plan for pushing servicers in the right direction, I fear that that will only push servicers right out of HAMP all together.    

The word inside the Treasury Dept. is that HAMP is not really working but no one seems poised to create a new plan.  I have 2 ideas, 1. Reduce Principal Amounts and 2. One Year Freeze on all Foreclosures. 

Luckily the Senate is getting restless and they are pretending like they will create a National Foreclosure Prevention Program (like Philadelphia’s) where every delinquent home owner gets to have a court-supervised mediation1. Or they want bankruptcy judges to amend mortgages1.

It all boils down to the fact that servicers have zero incentive to modify loans and have more incentives to do a trial modification while still collecting delinquent fees. 

“I don’t think [mortgage servicers] ever intended on doing permanent loan modifications1.” Margery Golant 

Source:
1. U.S. Will Push Mortgage Firms to Reduce More Loan Payments. Peter S. Goodman. NY Times. 11/29/09.
URL: http://www.nytimes.com/2009/11/29/business/economy/29modify.html

 

For more about the run around between mortgage servicers and their customer’s regarding modifications see Goodman’s related article:
Winning Lower Payments Takes Patience and Luck.  11/29/09
URL:  http://www.nytimes.com/2009/11/29/business/economy/29modifyside.html

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Posted in Foreclosure, Green Tree Servicing, Mortgage Servicers, New York Times, PHH Mortgage, Treasury, white house | Tagged: , , , , , , , , | 1 Comment »

Servicer Report through October 2009

Posted by CM on November 25, 2009

As always, here is your monthly Mortgage Servicer Performance Report through October 2009 from the Treasury Dept.

The pretty graphs show that housing inventory is increasing while mortgage rates, home prices and home sales are all dropping. 

PHH Mortgage is still not listed as a participant in this program.  According to some, PHH Mortgage is one of the tenth largest mortgage servicers.  Why aren’t they participating? If they are, why aren’t they visible on this report? 

See the report here

Posted in Foreclosure, Green Tree Servicing, Mortgage Servicers, PHH Mortgage, Short-sales, Treasury | Tagged: , , , , , , | Leave a Comment »

Vulture Funds

Posted by CM on November 25, 2009

I came across this article in the NY Times on Sunday about the fate of Vulture Funds (Troubled Investments).  Here is what is going on now in Wall Street….

  1. Investors are buying discounted home loans from distressed banks.
  2. Mortgages are then refinanced through the government.
  3. Profits are made by reselling government insured loans.
  4. The newly refinanced loans are bundled into securities and sold to investors (like usual).

For those of you who like diagrams….

 graphic vulture funds2

So, evidently all of the risk for these newly refinanced loans falls on the government and then ultimately the taxpayers.  Keep in mind that “Americans are falling behind on mortgage payments in record numbers1.” 

Homeowners are involved here.  They receive a letter stating their principals have been reduced and then have to refinance to get the reduction.  The investors receive a profit when the refinances amount to more than their original $40 Million investment.   Many of the interviewees in the article expressed their concerns about this new strategy and weren’t quite clear where all of this was headed. 

From my understanding;

  • These Vulture Funds are coming from distressed banks, not necessarily from distressed loans.  Yes, the argument is that distressed banks are a victim of distressed loans, but not every single loan is in distress.
  • Principal reductions don’t seem to be targeted toward people with distressed loans or those asking for modifications.  The article didn’t make this issue clear.  It just seems that whatever loans were in the pool are the ones being refinanced.  I don’t believe investors are going around looking for homeowners to help by reducing principals.  Wall Street just doesn’t work that way.
  • This article is a clear indication that the game hasn’t changed at all.  Regulations with teeth haven’t been enacted and the rules of the game haven’t changed either.
  • All we seem to have here is either a different way to play the mortgage game or a new side game to the game that has always been played.

Come on Obama and Geithner, “Yes We Can” do something about this.

Sources:
1.  Wall Street Finds Profits by Reducing Mortgages. Louise Story. New York Times. 11/21/09.
URL: http://www.nytimes.com/2009/11/22/business/22loans.html

Posted in Foreclosure, Green Tree Servicing, Mortgage Servicers, New York Times, PHH Mortgage | Tagged: , , , , , | Leave a Comment »

Modifications and Foreclosures in the News Again

Posted by CM on November 12, 2009

Ok, we have lots of news on the modification/foreclosure realm today. 

First, I came across this article yesterday about mortgage modification programs.  Alan Zibel for the AP wrote that Obama’s HAMP plan has started reaching “1 in 5 homeowners.”(1)  But, as we know, most servicers keep up with the foreclosure process while doing a modification.  Also, judging by your comments, modifications seem to result in foreclosures later.  I thought another section of this article was more important to our issues.  Zibel touched on a class action lawsuit in Minnesota filed by homeowners that said HAMP “failed to give proper notice when they were rejected [for modifications] or the right to appeal [the rejections].”(1)  The Judge rejected the suit and said, “the federal government has never made loan modifications an entitlement.”(1) 

What Judge Montgomery said basically sums up exactly what we are up against in the legal court and the court of public opinion.  When I first starting complaining about PHH Mortgage, I was told, “you agreed to pay for your house didn’t you?”  I said yes, but, shouldn’t I have some sort of consumer protections if something happens and I cannot pay for my house anymore?  The premise for my petition letters came from the above conversation.  As you see, we are facing a steep battle from people who think if we signed the loan papers, we should pay and that is it. 

Second, Foreclosures dip in October.  I didn’t even have to read the article to know exactly what they are talking about, because of HAMP, modifications are being started and foreclosures are being stalled.  That is all, foreclosures will rise again, I promise.  Anyway…Foreclosures dipped, but filings were “up 19% [from last year]” and “1 in every 385 homes received a [default] notice this month.”(2)  Wow, that is great news!  Those numbers sure do make me feel better, don’t they make you feel better?  Those numbers are crazy.  1 out of 385 is not a good statistic whatsoever.  Give me a break. 

The top ten foreclosure states in order from top to bottom are…..Nevada, California, Florida, Arizona, Idaho, Illinois, Michigan, Georgia, and Utah.(2)

Third, here is the MHA (Making Home Affordable) Mortgage Servicer Report through October 2009.  Enjoy.  What can I tell you about it?  It has 5 pages instead of 2.  There are more graphs showing downward trends with home prices and upward trends of housing inventory.  Fancy Fancy!  Other than that, PHH Mortgage is still not listed on there although it does say that servicers servicing Fannie loans are eligible to participate.  Here’s to crossing our fingers that PHH will one day participate. 

Last but not least, the best editorial I have read in a while came from the NY Times today.  More Foreclosures to Come.  Need I say more?  The editorial called for real modifications with principal loan reductions.  We have heard this before, yes, from the National Consumer Law Center.  The editorial goes on to say that, “another 2.4 million homes will be lost [to foreclosure] in 2010 and home prices will be reduced by 10%.”(3)  Recall above that I said most modifications will end in foreclosure, well the editorial said that, “most troubled borrowers will ultimately not qualify for help, and bad loans will be in foreclosure.”(3) 

The editorial continues, HAMP “has been flawed from the start and has no teeth to compel lenders to participate.”(3) 

Finally, “American Homeowners need an antiforeclosure plan that works.”(3) 

Sources:
1. Housing Plan Reaches 1 in 5 Borrowers. Alan Zibel. Associated Press. 11/10/09.
URL: http://hosted.ap.org/dynamic/stories/U/US_FORECLOSURE_AID?SITE=FLROC&SECTION=HOME&TEMPLATE=DEFAULT

2. Foreclosures Dip in October. J.W. Elphinstone. Associated Press. 11/11/09.
URL: http://hosted.ap.org/dynamic/stories/U/US_FORECLOSURE_RATES?SITE=MATAU&SECTION=HOME&TEMPLATE=DEFAULT

3. More Foreclosures to Come. NY Times Editorial. 11/12/09.
URL: http://www.nytimes.com/2009/11/12/opinion/12thu2.html

Posted in Congressional regulation, Court Filings, Foreclosure, Green Tree Servicing, Mortgage Servicers, New York Times, PHH Mortgage, Treasury | Tagged: , , , , , , , | 2 Comments »

Deed for Lease

Posted by CM on November 5, 2009

Heads up everyone.  I just came across this on The AP about Fannie Mae starting a program that will accept your deed in return for a rental agreement.  The author said that this is a deed-in-lieu but it is not.  A deed-in-lieu is just you signing over your deed to the mortgage servicer and most of the time it is in full satisfaction so the MS cannot sue you for a deficiency or collect foreclosure fees or collect delinquent fees.  I tried to get a deed-in-lieu from PHH for a year.  You know what happened to me, foreclosed! 

Back to the article.  I haven’t come across this new FNMA program anywhere else so please be aware and read everything before you agree to this.  Once you sign your deed over, you are not guaranteed anything. 

Read the article: Fannie Mae to rent out homes instead of foreclosing. By Alan Zibel. The Associated Press. 11/5/09
URL: http://hosted.ap.org/dynamic/stories/U/US_FORECLOSURES_RENTALS?SITE=CADIU&SECTION=HOME&TEMPLATE=DEFAULT 

WARNING: This news came from a press release from FNMA today, but a quick search on FNMA’s website showed that only renters in foreclosed houses are eligible for this program.  Mortgage holders are not eligible.  See it here 
FNMA may sound well intentioned but my loan was an FNMA loan and did I mention that I was foreclosed on?  I will keep my fingers crossed that this is really a new program and that it will work.  We shall see.

Posted in Foreclosure, Green Tree Servicing, Mortgage Servicers, PHH Mortgage | Tagged: , , , , | 6 Comments »

Warren for HR 3126

Posted by CM on November 4, 2009

I vote for Elizabeth Warren to run the Consumer Financial Protection Agency!  You know Ms. Warren, she is in charge of tracking all the bail-out or TARP money.  I have seen her on a few interviews and every time she is asked where the money is, she replies, “I don’t know!”  Isn’t it nice to see some honesty around Washington?  The Boston Globe wrote an article about Warren that was part biography and part setting the stage for her possible role as head of the highly anticipated and much watered down CFPA if it ever makes it into law. 

Warren said that most bankruptcies aren’t from outlandish spending but by cheating banks and medical bills.  That sure sounds correct to me!  If Warren is the head of the CFPA then I am certain she will make the most of whatever is left of it. 

Read the article here: In Fight Over Credit Rules, She Wields a Plan. By Michael Kranish.  11/3/09
URL: http://www.boston.com/news/nation/washington/articles/2009/11/03/in_battle_over_credit_abuses_warren_wields_a_plan/?page=full

Posted in Congressional regulation, Foreclosure, Green Tree Servicing, Mortgage Servicers, PHH Mortgage | Tagged: , , | 1 Comment »

Servicer Report through September 2009

Posted by CM on November 3, 2009

Sorry that I am late about posting this report.  It’s just me being “cynical sally” in thinking that this report really doesn’t mean much of anything at all. 

This is the Making Home Affordable Servicer Performance Report through September 2009.  PHH Mortgage is not listed on this report and has never been listen on this report.  The tiny writing at the bottom lists all the GSE (Government Sponsored Enterprise, which I believe are loans bought by Fannie or Freddie) servicers and PHH is not listed. 

I am fearful that if you are working with PHH on doing a HAMP modification that you are really not doing a HAMP modification. 

See the servicer report here

Posted in Foreclosure, Green Tree Servicing, Mortgage Servicers, PHH Mortgage, Treasury | Tagged: , , | Leave a Comment »

States May Go After Banks?

Posted by CM on November 3, 2009

Yes, you read that correctly.  It appears that the Supreme Court paved the way for states to prosecute banks for lending fraud, known as the “Clearinghouse Ruling.”  Yes, the Supreme Court did make this ruling in June and it has taken until now for states to “ponder” these cases.  But, at least the attorney generals are thinking about going after the banks.  Apparently that is all we need in America these days, the ability to think about doing something and then to give a speech about it.  However, doing something would just take ethical and moral responsibility, something that our politicians lack.     

See the NY Times article here

Posted in Congressional regulation, Foreclosure, Green Tree Servicing, Mortgage Servicers, New York Times | Tagged: , , | Leave a Comment »

Sign the new Petition

Posted by CM on November 2, 2009

Sign The Petition To The U.S. Government From American Homeowners.  The Petition has over 1,000 signatures so far.  It could be a winner!

Posted in Congressional regulation, Foreclosure, Green Tree Servicing, Mortgage Servicers, PHH Mortgage | Tagged: , | Leave a Comment »

10 Easy Steps to Being a Mortgage Servicer

Posted by CM on October 29, 2009

10 Easy Steps to Being a Mortgage Servicer
with a Money Back Guarantee

  1. Become a Business
  2. Open a Line of Credit
  3. Pay $1 Million for 1,000 Loans Worth $100 Million
  4. Use your line of credit to ADVANCE each payment to the investors
  5. Accept monthly payments from the borrowers
  6. Repay your advances with borrowers’ monthly payments
  7. Make Money
  8. Pretend to help customers while you delay reporting defaults
  9. When you finally have to report a default, Foreclose….FAST
  10. Lastly, above all else, play by the CRAs’ Rules so your rating remains high

For more information and details about items 1-10 on being a mortgage servicer, click here

Posted in Foreclosure, Green Tree Servicing, Mortgage Servicers, PHH Mortgage, Short-sales | Tagged: , , , , , , , , | 1 Comment »