Thursday morning on c-span they had a discussion about banking regulation and agriculture. According to Bill Black 40% of these loans were fraudulent. What this means is that in 40% of these cases, the lender/servicers broke the laws in executing and servicing the loan. Think about that figure. How many people lost their homes in the past due to illegal behaviors on the part of the servicers? I can tell you that there was no help for these people in 2002, 2003, 2004. How many people really have some kind of legal restitution coming? This is the first time that I have heard a government official aknowledge the level of fraud. Finally the men in black suits were asking about banking accounting fraud and the fact that no one has been able to investigate the books of some of these mortgage companies. Do you understand what that means? No one has seen the books. I can’t even get the mortgage company to give me my payment history. Yes, that is illegal and a violation of RESPA.

I know, but there is no one, no place for me to take this violation. The courts are over run with these cases. Bankrutpcy judges do not have jurisdiction to change or restructure these loans. Local lawyers do not want to take the time and energy to fight with these companies because small town lawyers are losing their cases to the sophisticate legal teams of these predators. They are fearless in their illegal behavior.

As someone who has witnessed first hand the accounting fraud, let me say that until the accounting fraud is uncovered we will not see improvement in the markets. The man defending the banking institutes said that the FDIC oversees banking fraud and would have investigated if it existed. However, there was no rebuttal to this point that the FDIC has been absolutely overwhelmed and has not yet, been able to investigate the books on these mortgages.

The next quote given by Mr. William Black a law professor from MU was that 80% of the accounting fraud was coming from the lenders. This is the yet untold truth about the mortgage fraud facing americans. Many people lost their homes due to accounting fraud. These mortgages contracts, payment histories and books have not yet been investigated. Yes, the implication is that this has occurred but we still do not have the whole truth about the amount of this accounting fraud and the cost to Americans.

I maintain that when this is over their will be many people who will deserve some type of punitive damages because they lost their homes due to accounting errors, illegal fees and basically accounting manuevers. I have linked on many occasions to story after story like mine where the accounting was not on the up and up.

In my case, I filed chapter 13 bankruptcy in 2005. At the time I filed Homecomings Financial said (a subsidiary of GMAC and lender to hurricane victims in La.)I owed 8600.00$ in arrears. An amount my lawyer said I could not contest because bankruptcy judges in my state could not interfere with the fee assessments. At that time they had assessed monthly fee inspections over the 6 months I was in foreclosure. There was at that time no way for me to contest the pay off they said I owed which was now three times my missed payments.

My laywer promised me that once the amount was secured they could not raise it while I was in bankruptcy. I have never missed a single payment while in bankruptcy. I have paid through the courts toward the arrears and paid an extra 50 a month plus my mortgage. During the course of the last 3 years they have hauled me into court twice for non payment. And charged me fees for this nonpayment.

Why did they not know I made my payments? What kind of accounting is this???The Judge in charge found on my behalf that I had paid my bill and that they were not to levy these fees against me. He was furious and threatened punitive damages against my lender. They quit hauling me into court, but did instead start adding these fees to the end of my loan. My lawyer warned me that they would likely put these fees on the end of my loan, out of the bankruptcy judges jurisdiction. Today they say I owe 13,000 thousand.

I would not be in bankruptcy if they had simply allowed me to pay off my back payments in the 3rd month when I recieved a large pay off from my ex in child support. I called them and tried to tell them that I would be able to pay this amount and reasonable fees and interest after they brought my ex into court. I gave them the court date that was set 3 months in advance. They refused all communication with me. They sent my check back when I tried to make payments.

They can do this while in foreclosure but they are supposed to continue communication with you while in foreclosure. What do they owe me for this violation? I paid an extra 500 a month for 6 months in fees before finally giving up and filing bankruptcy which more than paid the back payments that I had missed. I have no clue where they came up with the pay off amount. I have no clue about how they have applied my payments. My lawyer has asked for my payment history twice and they do not reply. That means I have no clue as to where I truly stand.

The fees are a grey area until we get congress to give bankruptcy judges the right to regulate them. My lawyer says that we have to wait until we get closer to the end of my bankruptcy before we can sue for them to give my payment history. Until that time I have no idea if I can keep my house. In the meantime, you would think that a lender looking at my history, the amount I have paid in fees and the fact that I missed two payment in 2003 and have not missed a payment since then, would find me a good credit risk.

But of course, the bankruptcy prevents me from being able to refinance. I have tried with my bank, and several others in town. I am one that the new regulations does not help. So my credit is ruined, I have paid out an incredible amount of money in bogus fees. I have 9 years of equity in my home…but on paper it looks like I owe the bank because of these unregulated fees, and these accounting games. How many people filed bankruptcy because of the accounting games? How many people lost their homes to accounting fraud?

Those answers will not come out until we can see the books of these lenders and to this date, there has been no movement by congress to make this happen. We have to be able to see into these books, into the payment histories. Until this occurs this chapter in the mortgage fraud will not be fully disclosed and we as a nation will continue to suffer consequences for this fraud.

See the links below for one report of fraud after another:

http://www.complaintsboard.com/complaints/fraud-and-lies-c100099.

htmlhttp://www.ripoffreport.com/reports/0/111/RipOff0111807.

htmhttp://homecomings-financial.pissedconsumer.com/homecomings-financial-corrupt-to-thecore20080813131335.

htmlhttp://www.complaintsboard.com/complaints/constructive-default-forced-foreclosure-c60703.html

If you have been a victim of servicing fraud with Homecomings Financial (a subsidiary of GMAC) then you can file a claim here with the most recent so far successful class action lawsuit:

http://www.homecomingsfinancialclassaction.com/

Until the fraud is uncovered we will not generate adequate solutions. As we speak these companies are fearlessly continuing their illegal behavior, continuing to create the problem we all seek to stop. And better yet, the American people just bailed them out.