(Source: Freddie Mac) - Freddie Mac announced last week it sold via auction 5,398 deeply delinquent non-performing loans (NPLs) from its mortgage investment portfolio on March 25th, 2015. The loans have an aggregate unpaid principal balance (UPB) of $985 million. The transaction is expected to settle in early May 2015. (more…)
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The Consumer Financial Protection Bureau (CFPB) announced today that they are considering plans to put an end to "payday debt traps" by requiring lenders to help make sure borrowers can repay their loans. The CFPB is also proposing to restrict how lenders can collect payments from debtors’ bank accounts, and rack up huge fees. These protections being considered would apply to payday loans, vehicle title loans, deposit advance products, certain high-cost installment loans and open-end loans. (more…)
As weekly average fixed mortgage rates move down again across the board to their lowest levels since February, the number of U.S. home loan applications rose this past week. Two great indicators that we are moving into a robust season for home buying, and refinance market for this spring. (more…)
Two weeks ago we reported that two Southern California men from the Inland Empire were arrested in an alleged massive loan modification scam that resulted in victims losing over $44 million dollars.
The two people taken into custody were disbarred California attorney, Stephen Lyster Siringoringo, 34, of Westminster, California, and Joshua Michael Cobb, 32, of Upland, California.
However a third suspect, Alfred Orn Clausen, 41, of Rancho Cucamonga, is still at large and wanted in connection with this massive fraud.
The two Government-sponsored enterprises (GSEs), Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation), announced on Tuesday that they are changing the way they modify some mortgages.
The reason for the change is because many of the loans previously modified under the Home Affordable Modification Program or "HAMP" were often fixed for only five years. Many of these homeowners are now struggling, or simply cannot make their higher monthly mortgage payments once their rates had adjusted upward. (more…)
When you apply for a loan modification, your mortgage servicer is going to review your entire hardship and financial situation to determine your eligibility for a modified payment. With that said, you will need to gather all the required paperwork and financial information required to begin the process.
Here’s a quick and simple list of items you will need to apply for a loan modification. Keep all these documentations in a folder that is easily accessable, and please keep in mind that you may have to send this paperwork many times to your mortgage servicer because they will claim they never got it, or you need to update it, etc. (more…)
Mortgage servicers will, in general, look for two main things when you submit a modification request. They look for a documentable financial hardship and what they really want to know, which is if you can afford the new proposed modified payment(s). (more…)
A loan modification is a change to the loan contract which is agreed upon by the lender and the homeowner. The lender modifies the existing loan(s) in order to work with the homeowner because of a financial hardship. The purpose is to help make the loan(s) more affordable.
If you can afford their home but not your current mortgage, then you may be eligible for a loan modification. (more…)
Two Southern California men from the Inland Empire were arrested last Thursday for an alleged massive loan modification scam that resulted in victims losing over $44 million dollars.
The ringleader of the fraud was disbarred California attorney, Stephen Lyster Siringoringo, 34, of Westminster, California. He had operated the scam from his Siringoringo Law Firm, and was taken into custody along with his co-defendant, Joshua Michael Cobb, 32, of Upland, California. A third suspect, Alfred Orn Clausen, 41, of Rancho Cucamonga, is still at large and is suspected of leaving the country.
A criminal complaint filed in San Bernardino County Superior Court accuses the two of 24 felony counts of money laundering and 23 felony counts of grand theft for millions of dollars taken from victims who were seeking mortgage modifications.
According to San Bernardino D.A., the Siringoringo Law Firm had aggressively advertised on local radio and television, primarily in Spanish speaking media.
The defrauded victims were guaranteed that they would receive a mortgage modification that would be handled by a licensed lawyer. Instead, the files were handled by non-attorneys who are alleged to have falsified the numbers and collected upfront fees and monthly payments, which is illegal under the state law.
Both Siringoringo and Cobb remain in custody with bail set at $17.8 million. They have entered not guilty pleas and are scheduled for a court hearing this Friday.
If you have any information about this case or the defendants, you are encouraged to call the San Bernardino, California D.A.'s Real Estate Fraud Prosecution Unit at (909) 891-3519.
Here is a list of the upcoming training calendar for March through April 2015 for HUD-approved Housing Counseling agencies, servicing lenders, nonprofits, and the Making Home Affordable Trusted Advisors. The links to training below will provide information on FHA Loss Mitigation tools and the Home Affordable Modification Program, (AKA) HAMP guidelines. (more…)
Also doing business as:
- First Choice Document Preparation
- 1st Choice Leads LLC
(Source: Washington State Department of Financial Institutions) - A Washington State consumer has reported that he was solicited by Newport Mortgage Relief d/b/a First Choice Document Preparation d/b/a 1st Choice Leads LLC (Newport Mortgage Relief) for a loan modification. Newport Mortgage Relief was paid a fee for third party loan modification services that were not provided. (more…)
This past week, six people were charged with violations of federal law for an alleged nationwide loan modification scam that involved more than 10,000 victims with losses of more than $33 million, according to Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Carlie Christensen, United States Attorney for the District of Utah. (more…)
The Federal Trade Commission (FTC) recently announced that a Utah loan modification firm, Danielson Law Group, LLC, operated by Philip J Danielson, had settled charges which claimed that they broke the law by ripping off homeowners in order to have them pay thousands of dollars for worthless mortgage relief services. (more…)
According to a recent press release from the FBI, a former loan officer for USA Mortgage Inc. pled guilty to multiple fraud charges last Friday, related to a scheme involving applications for home loans. (more…)