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Do you have a claim against New Century Mortgage?
February 20, 2012 2:53 pmSimonee
New Century Mortgage is currently in the process of wrapping up its bankruptcy proceedings, having successfully skirted dealing with the feared “floodgates” of borrowers claiming to be known claimants harmed by New Century’s, and its associates in enterprise, predatory lending practices. So let’s take a quick look at few facts.

■New Century originated approximately 100 Billion in Mortgage loans between January 2004 and April 2007
■Estimates put the number of discrete borrowers between 2 to 3 million individual loans. (According to the Center for Public Integrity, the average loan size at the subprime lending peak in 2005 was $183,000 per loan (See here Read under the “Deeper and Deeper in Debt, ¶3) – that would put the number of borrowers closer to the FIVE million mark)
■The Missal Report states that, at a minimum, 10% of those loans were subject to TILA/RESPA Violations, state and federal violations, faulty appraisals (overvaluing property) among other actionable deficiencies.
■The Missal Report details that New Century was provided monthly reports that detailed, on a loan level basis, the precise reason for an investor refusing the loan because of the above mentioned problems.
■The Missal Report details how New Century created Bid Sheets detailing the obvious deficiencies and problems of the above identified loans that were then sold to investors as “Scratch and Dent” loans at a discount.
The Liquidating Trustee, Alan Jacobs, and the Creditors Committee (made up of the likes of Deutsche Bank, Wells Fargo and Credit Suisse) claim that they “never knew” of any borrower having a potential claim. Really? Jacobs claims that upon reviewing the debtor’s books and records, he can’t identify any borrower that may have a potential claim against the Estate of New Century. Missal could find these records, but Jacobs and the crew can’t. What do you think – is he lazy, stupid, or a liar?

The Court has ruled in the Galope Claim that constructive notice by way of placement of ads in the Wall Street Journal and the Orange County Register are sufficient. Sigh. The Wall Street Journal, in 2007/2008, reported:

■Paid readership of approximately 1.2m in 2007 – so the Court assumes that what, 100% of the New Century customers read the WSJ? And that of course does not deal with the other 800,000 to 1.8 million borrowers (assuming the 3m count is correct and not the 5m).
■The profile of a WSJ reader in 2007/2008 is an individual with an annual income of 191k and a personal net worth of 2.1m – does this describe a subprime borrower?
■The Orange County Register has a readership of approximately 650,000 daily readers
■The profile of the daily reader is has an annual income in excess of $100,000 annually
If you add the 1.2 million readers from the WSJ with the 650,000 readers of the Orange County register, and assume that the number of borrowers IS less than 2 million – you still can NOT rationalize that these two publications were sufficient. If you follow the Center for Public Integrity estimate of borrowers, the notifications fall woefully short of providing constructive notice to all New Century borrowers.

Testimony by New Century counsel confirms that their intended audience was the financial firms (those that funded New Century Mortgage) and the employees of New Century Mortgage (the individuals that perpetrated and executed the predatory loans). Of course the Judge has expressed his “weariness” of the case and that apparently is a sufficient basis upon which to allow New Century Mortgage to continue its victimization of borrowers.

A homeowner would have to claim that they are one of the “scratch and dent” borrowers or that they were subject to a “kick out” by New Century Mortgage investors. The only way to find that out is through discovery because they sure as heck won’t tell you – even though by law they were required to do so. The Missal Report also details how Patrick Flanagan, a Sr. Executive at New Century, negotiated contracts with investors that they would not kick out more than around 2.5% of the loans for known problems. This means the investors – you know the ones sitting on the Creditors committee like Deutsche Bank, Wells Fargo and Credit Suisse – closed their eyes and took the Loans knowing they were taking Notes that were subject to claims by the borrowers. Missal, not surprisingly, was unable to verify this – think Deutsche Bank is going to admit that they intentionally ignored problematic loans? Does anyone know what that does to their precious “holder in due course” status? Doesn’t the UCC state that in order to claim HIDC status when the investor purchases the Notes they are claiming that they were unaware of any known “claims”??

I am exploring this interesting aspect …and if you are a New Century Mortgage borrower…you might want to spend some time reading the Missal Report (Click HERE to down load a partial report). Compare YOUR loan to those characteristics describe as being a basis for a “kick out” (starting around page 109 of the report) and then discuss it with your attorney NOW. You have to ask, if New Century KNEW…then weren’t you entitled to ACTUAL notice and not just constructive notice of the deficiency??

18 Responses

  1. We refinanced the Mortgage on a home in Minnesota, with New Century Mortgage in January 2006. It was sold immediately to American Servicing Company. (Unaware that it was AKA Wells Fargo). We began having diffuculty paying the loan in August 2008. In 2009 I was in a serious ATV accident and couldnt work. At the same time my husband’s unemployment benefits ended. We were given the “run-a-round” for 3 years with ASC “PHONEY” attempts at loan modifications.
    In March 2010, I requested copies of the original loan documents they had on file. I recieved a letter stating they did not have any of the documents on file! They wanted our copies of the loan documents before they would continue considering us for a loan modification. I became was too ill from a staph infectiion to fight!
    We were served with several “NOTICE OF SHERRIFF’S SALES” during these three years, that were postponed. In December 2012 we had THOUGHT we postponed the Sheriffs Sale scheduled for January 2011 and were stll working on a loan modification.
    My husband called ASC in April 2011 and he was told “We’re sorry but your home was sold on January 12, 2011. We are a family with three children. This was the only HOME they knew. This was DEVASTATING! to our family. We had to leave Minnesota. We now live in Kansas.
    The Sheriffs Sale Notice named “New Century Mortgage Corporation ” as the ORIGINATOR and ASSIGNED TO “US Bank National Associates as Trustee for SABR 2006-NC2” This is the first time we realized, somehow WELLS FARGO was involved.
    After my research on Preditory Loans and Illegal Forcosures, I am convinced we have many cases. Preditory loans, Inaccurate Appraisal, TILA violations, Illegal foreclosure. Does anyone know an Attorney that “HAS THE BALLS!” to take these cases on, who’s intent is not to take advantage of our desperation for justice? And not to simply to make money off of us?
    I am EMBARRASED that I even considered a loan with New Century without more research into the company. We were desperate to get a loan and were taken advantage of by them. “Fool me once, shame on ME..Fool me twice?……NO WAY!

  2. Lawyers Title is a proud member of the Fidelity National Financial, Inc. (NYSE: FNF) family of title companies, which collectively represent the largest title insurance and escrow services company in the world.
    Fidelity National Title Group (FNTG) is one of the nation’s largest and most respected title insurance and escrow services companies. The Company’s seven leading title insurance underwriters – Fidelity National Title, Chicago Title, Commonwealth Land Title, Lawyers Title, Ticor Title, Security Union Title and Alamo Title – issue approximately half of all title insurance policies in the United States. Through its direct operations and agencies, Fidelity National Title Group provides title insurance in 49 states, the District of Columbia, Guam, Mexico, Puerto Rico, the U.S. Virgin Islands and Canada.

    In addition to title and closing services, ServiceLink is the company’s national lender platform, providing a full suite of origination and default related products and services to leading mortgage originators and servicers. Through unrivalled experience and customer service, innovative products and cutting edge technology, ServiceLink partners with their clients to mitigate risk, reduce cycle times and lower operating costs while driving maximum performance throughout the life of the loan. The company’s customer base includes 15 of the country’s top 20 national lenders and servicers.

    FNTG’s parent company, Fidelity National Financial, Inc. (FNF) consistently ranked on the Fortune 500 list of America’s largest companies — provides flood insurance, property and casualty insurance and home warranty insurance through our specialty insurance business. FNF is also a leading provider of outsourced claims management services to large corporate and public sector entities through its minority-owned subsidiary, Sedgwick CMS.

  3. the LENDER’S SECURITY INTEREST in a Timely & Efficient Closing for Lenders, Owners, Borrowers, investors and Counsel:
    Banks/Financial Institutions:
    • Bank of America
    • Wells Fargo
    • Citigroup
    • Deutsche Bank
    • JP Morgan Chase
    • Goldman Sachs
    • Morgan Stanley
    • Bear Stearns
    • Greenwich Capital
    • Credit Suisse First Boston
    • Lehman Brothers
    • Merrill Lynch
    • GMAC
    • Wachovia
    • Key Capital
    • TIAA-CREFF
    • Countrywide
    • ARCS
    • MONY
    • Prudential
    • RAIT
    • Column Financial

  4. 12/30/2001
    17 Institution(s) Found.
    Seq Num Name (RSSD ID) Parent Seq Num City State / Country Institution Type
    1 * VALLEY NATIONAL BANCORP (1048773) WAYNE NJ Bank Holding Company
    2 -* VALLEY NATIONAL BANK (229801) 1 PASSAIC NJ National Bank
    3 –* MERCHANTS NEW YORK COMMERCIAL CORP. (2767651) 2 NEW YORK NY Finance Company
    4 –* NEW CENTURY ASSET MANAGEMENT, INC. (2838177) 2 WAYNE NJ Domestic Entity Other
    5 –* HALLMARK CAPITAL MANAGEMENT, INC. (2930996) 2 WAYNE NJ Domestic Entity Other
    6 –* VALLEY COMMERCIAL CAPITAL, LLC (3043268) 2 WAYNE NJ Domestic Entity Other
    7 –* VNB MORTGAGE SERVICES, INC. (1444375) 2 WAYNE NJ Domestic Entity Other
    8 –* VN INVESTMENTS, INC. (2133340) 2 WAYNE NJ Domestic Entity Other
    9 —* VNB REALTY, INC. (2357155) 8 WAYNE NJ Domestic Entity Other
    10 —-* VNB CAPITAL CORP. (2575575) 9 NEW YORK NY Domestic Entity Other
    11 –* VNB INTERNATIONAL SERVICES, INC. (2426828) 2 WAYNE NJ Edge Corporation – Investment
    12 —* VNB FINANCIAL SERVICES, INC. (2293703) 11 SCARBOROUGH CANADA Finance Company
    13 –* VNB LOAN SERVICES, INC. (2614885) 2 CHESTNUT RIDGE NY Finance Company
    14 –* WAYNE TITLE, INC. (2749228) 2 RIVERDALE NJ Domestic Entity Other
    15 –* WAYNE VENTURES, INC. (2749237) 2 WAYNE NJ Domestic Entity Other
    16 -* + VISTA BANCORP, INC. (1250277) 1 PHILLIPSBURG NJ Bank Holding Company
    17 -* VNB CAPITAL TRUST I (3072455) 1 WAYNE NJ Domestic Entity Other

  5. 12/30/2000
    18 Institution(s) Found.
    Seq Num Name (RSSD ID) Parent Seq Num City State / Country Institution Type
    1 * VALLEY NATIONAL BANCORP (1048773) WAYNE NJ Bank Holding Company
    2 -* VALLEY NATIONAL BANK (229801) 1 PASSAIC NJ National Bank
    3 –* WAYNE VENTURES, INC. (2749237) 2 WAYNE NJ Domestic Entity Other
    4 –* VALLEY CMC, INC. (2803269) 2 WAYNE NJ Domestic Entity Other
    5 —* VN INVESTMENTS, INC. (2133340) 4 WAYNE NJ Domestic Entity Other
    6 –* NEW CENTURY ASSET MANAGEMENT, INC. (2838177) 2 WAYNE NJ Domestic Entity Other
    7 –* HALLMARK CAPITAL MANAGEMENT, INC. (2930996) 2 FAIRFIELD NJ Domestic Entity Other
    8 –* VNB MORTGAGE SERVICES, INC. (1444375) 2 WAYNE NJ Domestic Entity Other
    9 –* BNV REALTY INCORPORATED (2133304) 2 WAYNE NJ Domestic Entity Other
    10 —* SAR I, INC. (2686471) 9 WAYNE NJ Domestic Entity Other
    11 —* SAR II, INC. (3011511) 9 WAYNE NJ Domestic Entity Other
    12 –* VNB FINANCIAL ADVISORS, INC. (2357155) 2 WAYNE NJ Securities Broker/Dealer
    13 –* VNB INTERNATIONAL SERVICES, INC. (2426828) 2 WAYNE NJ Edge Corporation – Investment
    14 —* VNB FINANCIAL SERVICES, INC. (2293703) 13 SCARBOROUGH CANADA Finance Company
    15 –* VNB LOAN SERVICES, INC. (2614885) 2 CHESTNUT RIDGE NY Finance Company
    16 –* WAYNE TITLE, INC. (2749228) 2 RIVERDALE NJ Domestic Entity Other
    17 -* + VISTA BANCORP, INC. (1250277) 1 PHILLIPSBURG NJ Bank Holding Company
    18 -* + SHREWSBURY BANCORP (2366997) 1 SHREWSBURY NJ Bank Holding Company

  6. 12/30/1999

    18 Institution(s) Found.
    Seq Num Name (RSSD ID) Parent Seq Num City State / Country Institution Type
    1 * VALLEY NATIONAL BANCORP (1048773) WAYNE NJ Bank Holding Company
    2 -* VALLEY NATIONAL BANK (229801) 1 PASSAIC NJ National Bank
    3 –* VNB LOAN SERVICES, INC. (2614885) 2 CHESTNUT RIDGE NY Finance Company
    4 –* WAYNE TITLE, INC. (2749228) 2 RIVERDALE NJ Domestic Entity Other
    5 –* WAYNE VENTURES, INC. (2749237) 2 WAYNE NJ Domestic Entity Other
    6 –* VALLEY CMC, INC. (2803269) 2 WAYNE NJ Domestic Entity Other
    7 —* VN INVESTMENTS, INC. (2133340) 6 WAYNE NJ Domestic Entity Other
    8 –* NEW CENTURY ASSET MANAGEMENT, INC. (2838177) 2 WAYNE NJ Domestic Entity Other
    9 –* VNB MORTGAGE SERVICES, INC. (1444375) 2 WAYNE NJ Domestic Entity Other
    10 –* RFC HIGH DEBI HILLS, INC. (2004208) 2 WAYNE NJ Domestic Entity Other
    11 –* BNV REALTY INCORPORATED (2133304) 2 WAYNE NJ Domestic Entity Other
    12 —* SAR I, INC. (2686471) 11 WAYNE NJ Domestic Entity Other
    13 –* RAMAPO INVESTMENT CORPORATION (2181323) 2 WAYNE NJ Domestic Entity Other
    14 –* RFC DEER TRAIL DEVELOPMENT, INC. (2287681) 2 WAYNE NJ Domestic Entity Other
    15 –* VNB FINANCIAL ADVISORS, INC. (2357155) 2 WAYNE NJ Securities Broker/Dealer
    16 –* VNB INTERNATIONAL SERVICES, INC. (2426828) 2 WAYNE NJ Edge Corporation – Investment
    17 —* VNB FINANCIAL SERVICES, INC. (2293703) 16 SCARBOROUGH CANADA Finance Company
    18 -* + VISTA BANCORP, INC. (1250277) 1 PHILLIPSBURG NJ Bank Holding Company

  7. In NJ – Lawyers Title Agency LLC – Parent Valley National Bancorp 2003

    VALLEY NATIONAL BANCORP (1048773) as of 03/11/2003

    Hierarchy report with the following institution types: Commercial Bank, Cooperative Bank, Credit Union, Edge/Agreement Corporation, Financial Holding Company, Holding Company, Industrial Bank, Insurance Co. Broker/Agent/Underwriter, Nondepository Trust Company, Other Company, Savings Bank, Savings and Loan Association, and the Securities Broker/Dealer/Underwriter

    20 Institution(s) Found.
    Seq Num Name (RSSD ID) Parent Seq Num City State / Country Institution Type
    1 * VALLEY NATIONAL BANCORP (1048773) WAYNE NJ Bank Holding Company
    2 -* VALLEY NATIONAL BANK (229801) 1 PASSAIC NJ National Bank
    3 –* NEW CENTURY ASSET MANAGEMENT, INC. (2838177) 2 WAYNE NJ Domestic Entity Other
    4 –* HALLMARK CAPITAL MANAGEMENT, INC. (2930996) 2 WAYNE NJ Domestic Entity Other
    5 –* VALLEY COMMERCIAL CAPITAL, LLC (3043268) 2 WAYNE NJ Domestic Entity Other
    6 –* MASTERS COVERAGE CORP. (3139291) 2 SPRING VALLEY NY Domestic Entity Other
    7 —* KING AGENCY INC. (3281190) 6 SPRING VALLEY NY Domestic Entity Other
    8 —* LIFE LINE PLANNING INC. (3281202) 6 SPRING VALLEY NY Domestic Entity Other
    9 –* NIA/LAWYERS TITLE AGENCY, LLC (3151266) 2 PARAMUS NJ Domestic Entity Other
    10 –* GLEN RAUCH SECURITIES, INC. (3172524) 2 NEW YORK NY Securities Broker/Dealer
    11 –* VNB MORTGAGE SERVICES, INC. (1444375) 2 WAYNE NJ Domestic Entity Other
    12 –* VN INVESTMENTS, INC. (2133340) 2 WAYNE NJ Domestic Entity Other
    13 —* VNB REALTY, INC. (2357155) 12 WAYNE NJ Domestic Entity Other
    14 —-* VNB CAPITAL CORP. (2575575) 13 NEW YORK NY Domestic Entity Other
    15 –* VNB INTERNATIONAL SERVICES, INC. (2426828) 2 WAYNE NJ Edge Corporation – Investment
    16 –* VNB LOAN SERVICES, INC. (2614885) 2 CHESTNUT RIDGE NY Finance Company
    17 –* WAYNE TITLE, INC. (2749228) 2 RIVERDALE NJ Domestic Entity Other
    18 –* WAYNE VENTURES, INC. (2749237) 2 WAYNE NJ Domestic Entity Other
    19 –* MERCHANTS NEW YORK COMMERCIAL CORP. (2767651) 2 NEW YORK NY Finance Company
    20 -* VNB CAPITAL TRUST I (3072455) 1 WAYNE NJ Domestic Entity Other

  8. Word Mark HOME123 INSURANCE SERVICES
    Goods and Services IC 036. US 100 101 102. G & S: PROVIDING INSURANCE SERVICES IN CONNECTION WITH MORTGAGE LOANS. FIRST USE: 20060415. FIRST USE IN COMMERCE: 20060415
    Mark Drawing Code (3) DESIGN PLUS WORDS, LETTERS, AND/OR NUMBERS
    Design Search Code 07.01.04 – Detached house
    07.01.06 – Other houses
    27.01.04 – Letters forming objects; Numbers forming objects; Objects composed of letters or numerals; Punctuation forming objects
    27.03.05 – Objects forming letters or numerals
    Serial Number 78517886
    Filing Date November 16, 2004
    Current Basis 1A
    Original Filing Basis 1B
    Published for Opposition September 13, 2005
    Registration Number 3118270
    Registration Date July 18, 2006
    Owner (REGISTRANT) New Century Mortgage Corporation CORPORATION CALIFORNIA 18400 Von Karman Irvine CALIFORNIA 92612
    (LAST LISTED OWNER) BRANDIVATION LLC LIMITED LIABILITY COMPANY DELAWARE 2033 MILWAUKEE AVENUE SUITE 237 RIVERWOODS ILLINOIS 60015

    Assignment Recorded ASSIGNMENT RECORDED
    Attorney of Record ALAN S. WERNICK
    Prior Registrations 2250525;2559001;2631907
    Disclaimer NO CLAIM IS MADE TO THE EXCLUSIVE RIGHT TO USE “INSURANCE SERVICES” APART FROM THE MARK AS SHOWN
    Type of Mark SERVICE MARK
    Register PRINCIPAL
    Live/Dead Indicator LIVE

  9. My email is toddmichaelhess@gmail.com Ok , Simonee feel free to contact me whenever you please. very truly yours Todd Hess.

  10. Please email your contact info to me and we can let you know what other NC borrowers are doing Email Simonee@infotofightforeclosure.com I am a homeowner advocate and NC victim, I am not an attorney.

  11. I do have a claim They never gave me credit for my first payment they still have my money I have paid in full Doc’s still no accounting, still no credit for my payment DOESN’T THAT GIVE ME A CLAIM AS A CREDITOR?

  12. My Husband and I had a loan with New Century in 2005, New Century had it shortly and sold it to Ocwen, Ocwen had it for a year or so, and they sold it to Littion, Littion had it for a year or so, and they sold it back to Ocwen. I need to know what the Hell is going on, Why? sell it so often? can someone advise me on what I should do.
    Thank You,
    Cherie

  13. chris..you need to reach out to me at simonee@infotofightforeclosure.com we are all working together to get objections filed to the “law of the case”.

  14. If you are doing battle with New Century, they are trying to get the Galope Claim as “law of the case” – you need to file a motion fighting that NOW and appear at the hearing on Monday the 27th before the judge aruging that Galope’s cross examination of the NC witnesses was ineffective and it would be a manifest injustice to hold ALL claimants to that ruling. You may also want to look at the characteristics of a “kick out” or “scratch/dent” (the same thing) loans and compare YOUR loan to those characteristicis. If they are similiar then tell the Judge your loan shares those characteristics and you believe you were entitled to ACTUAL notice not just constructive notice. (But still fight the constructive notice standard). Those boys in Delaware have been rolling around in their own bulls**t for so long they can no longer smell the manure they are shoveling…but ladies and gentlement THIS STINKS to high heaven! TAKE ACTION NOW.

  15. Hello, I appreciate this report. I’am a New Century Loan consumer, May of 2005. Hopefully people who really are fragmented by the unmoraliness of a debt individually ignored by the ones who wanted a way out, can be redeemed. Especially the ones, who were crushed by this event, bearly surviving, not having to afford an attorney. Even the ones who get it. Can someone help us.. suttons77@hotmail.com

  16. Project Kettlebell

  17. @ Neil

    Well, just so happens, many of us on your site are doing battle with New Century.

    Judge Carey has in fact allowed transfers of assets, before the bankruptcy filing and after. He is denying homeowners claims and as you have posted this story Judge Carey is making late claims “as rule of the court” denied.

    Footnote: Neil, the internal report of KPMG, 2007 (NC auditors) is compelling. It shows “betting” on defaults, with an excel sheet, where the potential defaults were insured…and here’s the thing; If I were a betting person, I’ll BET many of the defaults were intentional i.e. withholding payments to do exactly that, put them in default. Now, if they did that, they were never legally entitled to put them in a trust, which I suspect they never did either.

    Every piece of paper I have in my possession related to my transaction with them is askew…everything. Are you going to help? I certainly hope you will!

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