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Posts Tagged ‘PHH Mortgage’

PHH Settles with New Jersey

Posted by CM on January 2, 2014

PHH settles wth New Jersey for 6.25 Million Dollars! Read more here: http://nj.gov/oag/newsreleases13/pr20131204a.html

Posted in Better Business Bureau, Court Filings, Foreclosure, Foreclosure, Mortgage Service Providers, Mortgage Servicers, PHH Mortgage | Tagged: , , | 1 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 »

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 »

PHH in NY Times Article!

Posted by CM on October 25, 2009

Finally!  Just about an entire article was dedicated to PHH in Sunday’s NY Times!  Click Here to read it

A Federal Bankruptcy Judge in New York State determined that PHH did not have the correct documentation to legally foreclose on a house.  This is another “produce the note” type of situation that we have heard about.  The article also mentions securitizations which I have just read about in the the National Consumer Law Center’s newest report on foreclosures.  Stay tuned to this blog for more about securitizations.  Or read the report here

I am printing this NY Times article for reference later.  We need to make sure our attorneys know about this information.  We can’t assume that they know everything about mortgage servicers.

Posted in Foreclosure, Green Tree Servicing, Mortgage Service Providers, Mortgage Servicers, New York Times, PHH Mortgage | Tagged: , , , , | 1 Comment »

Mortgage Cramdown

Posted by CM on October 16, 2009

If the health care debate in Washington has shown us anything, it is that corporations own our politicians.  I have spent the past month thinking that this little ole blog of mine won’t amount to anything and why waste my time.  To be fair to myself, I still kept reading the papers and watching the news and had not really heard much about mortgage servicers lately.  Luckily I picked up a Business Week Magazine this week and found an article about mortgages!  (I should also add that I don’t believe that any elected official will do anything about mortgage servicers.  Please excuse my bitterness about my foreclosed house!)

Anyway, it seems that Senator Dick Durbin (D-IL) has vowed to attach a “cramdown” amendment to every bill until it gets passed.  Cramdown is the Democrats catchy phrase answer to allowing bankruptcy judges to adjust mortgages.  They would also be more inclined to reduce principal and interest.  Recall from previous posts that reducing principal and interest are the best tools for mortgage modifications in HAMP.  Apparently this proposal passed the House and was lost in the Senate on a 45-51 vote1.   Undeterred, Durbin has promised to fight on.  I suppose he will hang on until a bank lobbyist gives him a big campaign contribution to shut up! 

Business Week did not give any specifics about the cramdown legislation and I was not able to find any information about it on Sen. Durbin’s website.  Business Week did not provide details regarding the cramdown’s passage in the House; like which bill the proposal was imbedded into. 

Obviously letting judges modify mortgages is a good idea.  These days, any good idea that has lobbyists fighting over its demise is good for the American people!

Hopefully I can put my foreclosure bitterness aside and keep fighting the good fight.  I don’t think we will win but I suppose we can keep trying. 

Sources:
 1. Return of the Mortgage Cramdown. Theo Francis. Business Week. 10/19/2009. 
  http://www.businessweek.com/magazine/content/09_42/b4151052063508.htm

Posted in Congressional regulation, Foreclosure, Mortgage Servicers, PHH Mortgage | Tagged: , , , , , | 2 Comments »

PHH has sold all their mortgages

Posted by CM on September 6, 2009

According to SEC filings dated June 2, 2009; it appears that PHH through Chesapeake Funding has sold ALL of their mortgages.  However, they have retained their servicing rights. 
PHH sold their mortgages for $1 Billion to: J.P. Morgan, Bank of America, Citigroup, Wachovia, Scotia Capital, and RBS.     

See the full SEC filing here

Posted in Foreclosure, Green Tree Servicing, J.P. Morgan Chase, Mortgage Servicers, PHH Mortgage, Treasury | Tagged: , , , , , , , , , , | Leave a Comment »

Meet with Wells Fargo Reps

Posted by CM on September 4, 2009

Starting Tuesday, September 8th, 2009; Wells Fargo Representatives will be on hand at the Phoenix Convention Center for 3 days to meet with customers regarding their loan modification applications.  Customers will be able to determine if their modification applications have been approved or denied.

Mrs. Giguere of Phoenix, AZ, lost her employment and requested a loan modification from Wells Fargo.  She sent in her paperwork several times with no response.  In bankruptcy court she was able to ask a high-ranking bank executive of Wells Fargo why she never received a response to her loan modification request and subsequent paperwork. 

Judge Randolph J. Haines of the United States Bankruptcy Court asked this of the Wells Fargo executive: “When did you tell the debtors that their loan was no longer being considered for modification?”

The Wells Fargo rep replied, “We haven’t. They’ve never been told.”

Ha! I would love to hear PHH Mortgage admit that and more! 

Read the full story here

Source:
Judges’ Frustration Grows with Mortgage Servicers. John Collins Rudolf. The New York Times. 9/4/09. 
URL: http://www.nytimes.com/2009/09/04/business/economy/04wells.html

Posted in Foreclosure, Mortgage Service Providers, Mortgage Servicers, New York Times, PHH Mortgage | Tagged: , , , , , , | Leave a Comment »

Fabrication of Default

Posted by CM on September 4, 2009

By Coleen Martinez
coleen.martinez@stopmortgageservicers.org
9/4/09

{This is another post from my reading of Ms. McGrath’s testimony to Congress.  Please note that Ms. McGrath’s words were so important and concise that I could not properly put her words into my own.  Therefore, most of this post is verbatim.  I have added the hypothetical examples.  Click here for the full testimony.}     

In my last post, Making Money as a Mortgage Servicer, I wrote about late fees.  This is how the late fees system works.  Our hypothetical situation has a mortgage for $245,000 with a $1,750 monthly payment.    

  • The date the monthly payment is received is manipulated in order to create a late payment.
  • A 5% “late fee” is triggered. [5% of $1,750 is $87.50]
  • Suspense: The late fee is deducted from the next month’s principal and interest payment. [1750 – 87.50 = 1662.50]
  • So, the next month’s payment immediately becomes a partial payment ($1662.50), which is placed in suspense and creates another late fee for that month. 
  • With this one late payment, the homeowner is now considered 1 month delinquent. 
  • Below is a chart following the payments until a default is reached (90 days). 
Month Payment Late? Y/N Fee of 5% Suspend Amount Owed
January 1750 Y 0 0 0
February 1750 Y 87.50 From January
1662.50
1750
March 1750 Y 87.50 From February
1662.50
1750
April 1750 Y 87.50 From March
1662.50
1750

 

  • If I have understood this concept correctly, with this situation, the borrower will always be behind by a full payment amount. 
  • Property Preservation (PP): 60-days delinquent; real estate agents drive-by the property to make sure that it is not in a condition that would jeopardize the investment of the trust. 
  • Property Preservations can occur multiple times a day, week, or month. 
  • The charge for PP’s can range from $10.00 to $150.00.  The charge is incurred by the borrower through fees. 
  •  90-days delinquent: Foreclosure Proceedings begin and with this come Broker’s Price Options (BPO).
  • According to Ms. McGrath’s testimony, “The mortgage servicer will order a “quick sale” price for the property from the BPO.  This will often drop the price of a home by thirty, forty, or fifty thousand dollars1.”  This situation can lower the neighborhood value and depress that area’s market.

Based on my experience, the BPO’s ordered for my house resulted in inflated prices.  The BPO’s were not at all representative of the current market value of the home, neighborhood, and town. 

Sources:
1. Testimony of Maureen McGrath on behalf of National Advocacy Against Mortgage Servicing Fraud.  Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.  United States House of Representatives.  Field Hearing on “Broken Dreams in the Poconos: The Response of the Secondary Markets and Implications for Federal Legislation.”  6/14/04.

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

Produce The Note

Posted by CM on August 31, 2009

Meet Judge Arthur M. Schack of the New York State Supreme Court for Brooklyn and Staten Island.  Judge Schack is actually holding banks accountable for foreclosures.  He is meticulously going through foreclosure papers filed by banks and mortgage servicers looking for errors.  He found a representative of Deutsche Bank who had signed papers “claiming to be the vice president of two different banks1.”  He has thrown out “46 of the 102 foreclosure motions before him in the past two years1.”  Judge Schack said, “I won’t accept their comedy of errors1.” 

Judge Schack looks for errors and makes sure that the bank who is foreclosing actually owns the house.  Many times he has seen that the bank doesn’t even own the house.  When these loans were packaged and repackaged again, much of the paperwork was misplaced and signatures went missing.  If the banks can’t prove ownership of the home then they can’t foreclose on the loan. 

Judge Schack’s approach to foreclosure has become a revolutionary idea to some judges.  Not because this is a new idea but because he is actually holding corporations accountable for their actions.  I wish Judge Schack was handling my foreclosure! 

Judge Schack’s idea of demanding proof of ownership reminds me of the “Produce the Note” strategy promoted by Congresswoman Marcy Kaptur2 earlier this year.  If my memory serves me correctly, Kaptur urged her constituents to stay in their foreclosed homes until the banks produced the note and proved ownership.  There is also a website with more information about producing the note3

Clearly Judges and homeowners are starting to understand the games played by the mortgage industry.  A way to beat the banks at their own game is to have them prove ownership first!

Sources:
1.   A ‘Little Judge’ Who Rejects Foreclosures Brooklyn Style. Michael Powell. New York Times. 8/30/09.
      URL: http://www.nytimes.com/2009/08/31/nyregion/31judge.html

2.  Congresswoman Marcy Kaptur’s website
      URL: http://www.kaptur.house.gov/

3.  The Consumer Warning Network. Produce The Note Page. Found 8/31/09
     URL: http://www.consumerwarningnetwork.com/2008/06/19/produce-the-note-how-to/

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