JPM Whistle: My Boss Told Me, We’re In The Foreclosure — Not Modification — Business

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EDITOR’S COMMENT: MULTIPLE WARNINGS HERE. Nobody on the banking side wants modifications. Nobody actually has the authority. Modifications are admissions that the loan is worth less than what was sold to investors. But more than that, they mean that the servicer will not get a free house, which is what the Courts are allowing across the country when they allow the servicer or some other disinterested third party to submit a “credit bid” lieu of cash at the auction. What they want is foreclosures because this is a land grab — where the servicers and other disinterested third parties are getting something for nothing. By pretending to be a “lender” or successor or creditor they get to buy property with a wave of a wand — where they never loaned, invested or purchased the obligation.

Most modification scenarios end up with the borrower being turned down at random for any number of failures that don’t apply. The tricks used — including the famous “we didn’t get your papers, submit them again” — are known to everyone who has ever sought or assisted in modifications. Modification might sound good but it doesn’t turn out that way. They get you to admit you are in default and that the loan is in default — something that mostly is not true because the servicer is still paying on it even after they tell you that you are delinquent or in default.

When the servicer does that they are fulfilling a provision in the contract they have with Wall Street entities to make those payments — a term that was never disclosed to borrowers. They are also creating a possible claim against the homeowner — but that isn’t a claim on the mortgage, which is current, courtesy of the servicer making the payments; the claim is for restitution and cannot be achieved through foreclosure because the servicer is not the lender or creditor in THAT transaction. They must bring an unsecured claim that can only be processed judicially.

Foreclosures are the servicer’s reward for keeping their mouths shut about the reality of these transactions. They get a free house. They pretend to go through the modification process to make absolutely certain that you go further and further in the default zone, so their fees go to the highest point. Then they hit you with an up front payment requirement, which even if you make it, they still foreclose — because that is the business they are in — stealing houses through fraudulent foreclosures. But that’s not all — there’s more! Since your loan has already been paid off a couple of times, in most instances, every nickle they collect in payments is also free money with nobody to give it to. What a country!

Former JPMorgan Mortgage Servicer: My Boss Told Me, We’re In The Foreclosure — Not Modification — Business

Courtney Comstock | Jun. 20, 2011, 3:19 PM | 2,640 |
shadow anonymous doctor

Image: commons.wikimedia.org

A former employee of Chase’s mortgage servicing company says his job entailed “making borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose.”The former employee, who is identified only as “Jared,” explained his job to Mandelman Matters, which writes:

Jared recalled what his boss had told him during his first week on the job: “We’re in the foreclosure business, not the modification business.”

“Foreclosures are a no lose proposition for servicers… The servicer gets paid more to service a delinquent loan, and they get to tack on extra charges. If the borrower reinstates, which is rare, then the borrower pays the extra fees. If the borrower loses the house, then the investor pays them. Either way, the servicer gets their money.”

“Their whole focus is to foreclose, not to modify. They make borrowers jump through every hoop so that when something fails to get done on time, they can deny it and foreclose. That’s what it seemed like to me, anyway.”

An army official’s father had an experience with the bank that backs up Jared’s claim.

He recently described what the Chase mortgage modification process was like for him, telling Huffington Post:

When he first asked for help in 2008, he had not missed any payments. At the time, his mortgage was being handled by Washington Mutual, a subprime lending specialist Chase purchased in the fall of 2008. Collette said WaMu told him he would only qualify for a loan modification if he missed two of his $1,100 monthly mortgage payments. So he missed the payments. And the bank began trying to foreclose on him.

Jamie Dimon’s unfortunate quote from a few months ago echoes this shocking strategy: “Giving debt relief to people that really need it… that’s what foreclosure is.

These alleged practices, of course, are a large reason for Foreclosure-gate.

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14 Responses

  1. It’s obviously not fare Shelley, there’s always a loophole for the corporations that allows them to get away for wrongdoings, i feel for you and your grandson. I hope that things get better for you and your family. It seems like you have done quiet a bit of research on the subject matter of the whistleblowers, and I appreciate your knowledge. My hope is that more people who have been victimized either by the financial industry’s fraudulent activities or large corporations like Wall Mart who get away with everything to get informed and fight back! I admire your spirit and strength, people like you will be rewarded in ways that you may not expect. I’ll keep you in mind with best wishes and Am glad that I am not the only grandma out there fighting for justice. Keep up the good work, and keep voicing your thoughts and opinions and keep the information circulated. As for the criminals they will not get away with everything, no one ver does, it’s a matter of time. If the justice system does not hold them responsible, the people with. People are steering away from banks, and may be even Wall Marts especially after the last court case. Women should not walk in there, may be they’ll learn a lesson, and realize they are not big because they are Wall Mart, they are big because the people made them that way! God bless.

  2. The whistle blowers can receive ten to fifteen percent of funds recovered from the banks for false claims, ( I believe it is the false claims act) it it a part of the Frank Dodd Act. when false claims the banks made and agreed on for HAMP funds are stolen with no intent ot modify as was their agreement, they can be forced to repay the government billions. Whistle blowers are protected under that law and the reward can be significant. On the other hand every person involved like you say for a day or a moment is subject to being a criminal and can pay for their crime even unknowing employees. These people become immune to the prosecution as soon as they become a whistle blower, from what I gathered from the law when I read it a month ago. With ten percent of billions of dollars to recover, you would think these and immune to the crime, you would think that would be some incentive if pure morals were not involved. Keeping your mouth shut and knowing your are a witness of crime can get you in trouble, coming out public ally protects you. Not all employers hire you because you keep secrets. Some people believe in morals and justice. Hiding behind mask and secrets is a real mistake for all of us including himself. While American families are being tossed into the streets and terrorized by economic criminals. Read Wall Street and the financila crisis: anatomy of a financial collapse and wonder why this report did not put hundreds of banksters and their helpers in jail. I flew in the air walking into the front door of Wallmart, during a hail storm that caused hail to be bouncing all over their tile floor. Along with my four year old grand son who flew in the air also. Speaking of immoral. The store told me they were not responsible to have mats down, because they did not have enough notice to put mats down. One they were open. Two the Sunday paper said rain and hail Mon. thru Fri. I fell at 10:45 A.M Tuesday. The big guys seem to take on the we are not accountable for anything clause. Broke my foot in two places and shattered my febuli at the base of the leg bone.

  3. Wouldn’t it be nice if there was a sight just for the judicial system that information such as this one and the multiple other informations on how the banks deal or have dealt with the homeowners during these foreclosure crisis. A sight that lawyers and judges alike can read and educate themselves on what’s going on so they are better prepared to deal with and have better knowledge of what’s really going on from the inside out! may be Neil Garfield can create such a sight, he has more information than anyone on the reality of the foreclosure crisis, and he’s connected to all the other sights that provide more information as well. What do you think about that Neil? Something like this where a bank employee brings out the truth would help judges make better decisions in the long run. Because I think that judges are looking at things from an old fashioned point of view. You don’t pay, you lose kind of a deal. Not that some judges don’t already know, but if it’s in their faces how can they deny the obvious? Just wondering!

    He Shelly,

    I don’t know you but I am sorry to hear that you are in pain. I have to agree with what you had said though, about the employee behind the mask. It would be much better if he and others, (those who are aware of the crimes and fraud, committed by the banks, (their employers)), should be coming out in the forefront and speak up on the truth!!
    If one knows that there’s a crime being committed and they go along even for one one day or an hour or a minute, they become accessory to that crime. Many employees on banks that have committed fraud and are still committing fraud know what’s going on, but they stay quiet as to not lose their jobs, etc. Does it make it right or just, not it does not, but they are operating out of fear and selfish need. The banks are hiring desperate young people who are looking to make a buck and who are not having much luck otherwise, and give them what seems to be an important job; so they take it and keep their mouths shot. I have a family member who used to work for Wachovia bank when they took over World Savings and they started asking their employees to lie to the homeowners at closing and if they did not they get fired, so she got herself fired instead of lying, but she’s one of a kind! We all know the truth eventually will come out sooner or later, it would be much better if it was NOW! Shelly, I hope you get better and I hope for all of the homeowners who have been cheated out of their homes, get what’s rightfully theirs back, and I hope the criminal suffer for what they had done not only to the unsuspecting homeowners but to the whole economy as well, take care.

  4. Sorry it is late here and I am in a lot of pain. Broken leg and twisted back muscles. This person and people like him are the reason families are being tossed in the streets and going through unconscionable hell. This is why the banksters get away with their crimes He and more like him need to step up to the plate and tell the truth out loud. American depends on it, eventually his job and home will depend on it.

  5. Oops I mean totally not credible.

  6. How can you say this man is blowing the whistle? This man may mean well, but hiding behind a black mask makes him totally creditable! I use my name in full except perhaps my middle name. it is Ann. If this man really wants to put an end to the devils doings he will show his face and name. I will not hide behind anything. I want the truth to come out and these bastarrrrrr!!!!!!******* to pay.

  7. It does not matter what the banks want, when they accepted the HAMP program and money they committed to giving modification loans, and intended all along to steal the house and the HAMP funds. They are con artist theses. Of the worst kind. They have violated their HAMP agreement. Read the 650 page Wall street and the financial crisis; anatomy of a financial crisis. Available on the web. The senate report proves the crimes and we are still fighting for the houses after loosing our incomes and or being tricked into mod scams due to the bankster (advocates of the devil) economic preplanned crimes and no one has gone to jail. And they are getting free houses. Look up the doctrine of laches. This law applied to us! And Equity Estoppel!

  8. “Nobody on the banking side wants modifications. Nobody actually has the authority. Modifications are admissions that the loan is worth less than what was sold to investors.”

    I AGREE WITH THE PREMISE BUT OFFER AS ONE ALTERNATIVE REASON WHICH MAY EXIST IS THAT THE TRUSTS WERE SUPPOSED TO QUALIFY FOR SPECIAL NON-RECOGNITION NON-TAXABLE STATUS AS TO THE OWNERSHIP INTEREST IN THE MBS. UNDER A QUALIFIED TRUST THE SALE OR EXCHANGE OF THE UNDERLYING HOMEOWNER NOTES –SECURED BY MORTGAGES—DOES NOT TRIGGER INCOME OR LOSS RECOGNITION TO THE MBS OWNERS. HOWEVER MANY OF THESE TRUSTS FAILED TO MEET THOSE REQUIREMENTS BY FAILING TO FILE LOAN SCHEDULES AS REQUIRED ACROSS THE BOARD, ETC.

    IF THE TRUST EXEMPT STATUS FAILS, THE TRUST “ENTITY” DEFAULTS AS A MATTER OF TAX LAW TO AN UNICORPORATED PRIVATE PARTNERSHIP. THAT MEANS THE PARTNERSHIP MAY TAKE A LOSS IF IT EXCHANGES A HOMEOWNER NOTE WITH SO CALLED OUTSIDE BASIS OF ORIGINAL LOAN AMOUNT $100,000 FOR A TRUE NEW NOTE OF $60,000. THE PARTNERSHIP HAS A LOSS ON PAPER OF $40,000 TO DISTRIBUTE PRORATA AMONG ITS ORIGINAL FULL-BASIS PARTNER MBS HOLDERS–ONCE THEY DETERMINE PROPORTIONATE INCOME RIGHTS. BUT THE GUYS WHO BOUGHT THEIR PROPORTIONATE SHARE FOR $15,000 MBS INVESTMENT–THE VULTURES WILL RECOGNIZE THE GREATER OF THE PARTNERSHIP’S INCOME/LOSS ($40,000) OR THE ACTUAL REALIZED GAIN OF $45,000. HOWEVER THIS REALIZATION IS TECHNICAL IF THERE IS NOT A REFI THAT SPINS OFF CASH. SO IF ANYBODY IS CONFUSED BY THIS HYPERTECHNICAL LAW–JUST IMAGINE THAT SOME INSIGHTFUL DISTRESSED ASSET BUYER LIKE WILBUR L ROSS PURCHASES AN MBS UNIT AT THE BOTTOM OF THE MARKET AT $15,000. THEN A HOMEOWNER NOTE [THAT IS ALLOCATED TO HIM ARBITRARILY FOR PURPOSES OF THIS EXAMPLE] REALLY WORTH $60,000 IS ACTUALLY SOLD AND THE PROCEEDS DISTRIBUTED. NOW YOU CAN SEE WHY HE WOULD OWE TAX EVEN IF THE ORIGINAL NOTE WAS FOR $100,000 –SOMEBODY ELSE TOOK THAT LOSS WHEN THEY SOLD IN A PANIC TO MR ROSS. A LOSS OF $85,000–EG A PENSION TRUST OR LIFE INSURANCE COMPANY ETC–INSTITUTIONAL INVESTORS FACING LIMITS ON HOLDINGS OF SUBGRADE PAPER.

    NOW ALTHOUGH THE REALITY IS THAT THERE ARE 10,000 HOMEOWNER NOTES “EXCHANGED”, AND MR ROSS IS DISTRIBUTED A PRORATA SHARE ON PAPER–HE MUST PAY TAX ON THIS PHANTOM INCOME. ITS REAL ENOUGH BUT ITS NOT LIQUID–THERE IS NO LIKE KIND EXCHANGE RULE FOR NOTES–THATS WHY THEY HAD QUALIFIED TRUSTS OR THESE GUYS WOULD ROLL UNTAXED GAINS FOREVER.

    THIS IS WHY THEY DO NOT WANT TO MODIFY WITHOUT CASHING OUT. CONGRESS COULD ELIMINATE THIS BARRIER BY A LIMITED WAIVER OF THE GAIN ON ECHANGE RULES FOR A PERIOD OF TIME FOR SPECIAL CLASSES OF NOTES–IE DEFAULTED TRUSTS–OF COURSE THIS WOULD BE A BIG TAX BREAK FOR THESE GUYS–BUT THEY BASICALLY HAVE THE ENTIRE HOUSING MARKET HELD HOSTAGE NOW.

  9. Boycott the Foreclosing Banks. They are stealing someone’s home.

    USE CASH and someday silver.

    I do.

    No more 3%-4% Visa profits on every transaction, over and over. No more fractional reserve profiteering on puny interest to your account. No more control over our liqudity.

    We CANNOT coexist with these fraudulent banks.

    It’s either we as Americans survive or them and their phony pretender ‘debts’.

    Let them flush like they should have done in November 2008. We and our homes will then survive.

  10. Wouldn’t it be nice if there was a sight just for the judicial system that information such as this one and the multiple other informations on how the banks deal or have dealt with the homeowners during these foreclosure crisis. A sight that lawyers and judges alike can read and educate themselves on what’s going on so they are better prepared to deal with and have better knowledge of what’s really going on from the inside out! may be Neil Garfield can create such a sight, he has more information than anyone on the reality of the foreclosure crisis, and he’s connected to all the other sights that provide more information as well. What do you think about that Neil? Something like this where a bank employee brings out the truth would help judges make better decisions in the long run. Because I think that judges are looking at things from an old fashioned point of view. You don’t pay, you lose kind of a deal. Not that some judges don’t already know, but if it’s in their faces how can they deny the obvious? Just wondering!

  11. well 1st of all if this is all fraud 1st things 1st lets make sure anyoine reading this whom the banking entity has told that if we want to apply for a hamp modification you must be in eminent default (i am not a lawyer and can not give legal advice) and the banking entity has moved you into foreclosure. YOU are not in default and please do not leave your home. we have a 95% RATE OF PEOPLE STILL LEAVING THEIR HOMES AND THE OTHER 5% FIGHTING. this needs change if things around here are going to change. judges are not listening tio the 5% of us. make a plan everyday to write someone.

    http://stopforeclosurefraud.com/2011/06/22/read-letter-from-representative-elijah-e-cummings-to-darrell-e-issa-re-foreclosure-fraud-subpoenas/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ForeclosureFraudByDinsfla+%28FORECLOSURE+FRAUD+|+by+DinSFLA%29&utm_content=Yahoo%21+Mail

    this letter actually is pretty good does include our complaints to the OCC. not that when we all complained the OCC actually did anything, they didnt. but at this point at least they were noted in this letter. i am sure all of you were sent the same letter that i was sent , full of hot air and BS. Lies mostly. how wells fargo didnt compromise my hamp loan application
    and move it out of review the week i was suppose to be qualified and they didnt lose a fed ex package i sent. i wrote pam bondi fla ag and told them the same thing. actually i also told pam bondi wells fargo turned it all around on me. my file was never compromised and i didnt sent the correct paperwork. i told her i was nurse for 25 years and that she should have some proffesional courtesy that of all people i would not lie about he disposition of my wells fargo information. that as a nurse for 25 years i should have the up most respect in regards to this situation. all pam baondis office was send my letter off to wells fargo. people even though they are not doing anything if your bank gets multiple letters from the OCC and the ag they will know you are fighting and to stay away. more time to let all this shoot to hit the fan harder.

    good luck and write write write. we need our voice out there

  12. Every ‘foreclosure’ in hands of a ‘national association’.
    Any consumer complaints regarding this matter will be ignored blessed by Congress.
    All national association complaints to any one regarding harm to consumer as individual will be ignored as falling under jurisprudence of OCC!

    I have copies of communications by WFHM ‘Executive Specialists’ under Mary Coffin, both Co-Presidents, and John Stumpf in the loop where the ’employees’ state in response to Congressional Inquiry #854370 = No we won’t address question regarding Predatory Lending its on the ‘Retail’ side. (SERVICING SIDE!). Multiple requests from lower level employees sent to higher leveal (LEGAL parties) who came back with what to put in response to ‘CAG’ inquiry and thereafter they mark NO we already responded. OCC ‘CAG’ Customer Servicer to their client Wells Fargo sends response bank has handled matter. “NEVER investigates’. State agencies respond we can’t investigate under OCC.

    Consumer’s without due process of law!

    What to do? Come on there must be some good attorney out there who wants to take all consumer complaints in class action law suit for violation of civil rights?

    Every foreclosure under national association (not by accident) by agreement forcing all complaints through OCC and all institutions who default insured by FDIC!

  13. Please add me to your email list.

    Thank you.

    Email: abby7700@gmail.com

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