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  • Mary K. Lenahan, J.D., Realtor

Bank of America Employees Told To Lie and To Deny Qualified Loan Modification Requests


Bank of America Center, Financial District San Francisco

Bank of America Center, Financial District San Francisco

 

“We were told to lie to customers,” said Simone Gordon, who worked in the bank’s loss mitigation department until February 2012. “Site leaders regularly told us that the more we delayed the HAMP [loan] modification process, the more fees Bank of America would collect.”

http://www.nbcnews.com/business/suit-bank-america-paid-bonuses-foreclosures-6C10351458

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California San Francisco Assessor Finds Widespread Violations of Laws by Banks in Foreclosure Process


I hope this is treated more seriously than the banks’ huge robo-signing fraud.  To my knowledge, no one was ever prosecuted for that widespread fraud.  The Banks received a slap on the hand and the settlement involved a promise by the banksters to stop fraudulently manufacturing documents.!

Mortgage Servicers Make More Money if Mortgage is in Default – They Have Quotas to Meet to Foreclose


The above may shed light on why Mortgage Servicers do not modify loans in good faith. Per former EMC Mortgage Coproration employee fired for “helping” elderly homeowners. It was more profitable to foreclose.

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property – until their children wake-up homeless on the continent their fathers conquered.”
Thomas Jefferson, 1802

NACA Loan Modifications: It Takes Not a Village, but a Whole Country to Keep the Dream Alive


Bank of America Center, San Francisco

Bank of America Center, San Francisco

In 2008, shortly after the financial crisis hit, I offered my legal services to distressed homeowners to negotiate loan modifications.

I felt I could provide my clients great services in this area due to my negotiating and writing skills developed from years of settling litigated disputes and writing persuasive motions and appellate briefs.

I learned very quickly, however, that the “loan modification process” was a farce.   The banks’ advertisements about their purported desire to help borrowers were patently false, mere propaganda fed to the American Public at cost of most likely millions of dollars in advertising dollars.

The collapse of Wall Street and the U.S. & World economies didn’t seem to daunt the financial industry’s  greed or audacity one bit.  (See e.g Aritcle re: bank executives multi-million dollar bonuses after bail out)

My experience with “negotiating” loan modifications for my clients was very much like what Congresswoman Maxine Waters’ experienced. (See video of Maxine Waters:  Behind the Bank’s Verbiage on Loan Modification

After our U.S. Congress rushed to the banks’ rescue with multi-billion dollar bail outs, it eventually passed some legislation purporting to help American Homeowners.   As we have seen since then, however, these programs have been deemed failures.   See:  Hope For Homeowners Offer Limited Hope;   See article why Home Affordable Modification Program [HAMP] is a failure.

The program titles were mere puffery; the substance of these governmental programs lacked any “teeth”.   But why does that surprise anyone since our own U.S. Congress members admit the banks are running the U.S. Congress.

So who can help Americans? Or rather how can American help themselves?

One organization which seems to be able to buck the power of the banks and help homeowners get reasonable loan modifications is the Neighborhood Assistance Corporation of America (NACA).

NACA is a non-profit HUD Certified organization which represents itself to be the largest and most powerful and effective advocate for homeowners in the country.

What makes NACA succeed where our Legislature has failed?   First, its probably due to NACA’s CEO Bruce Marks’ passion and commitment to fight abuse by the financial industry.  Second, NACA relies upon public support and active participation which it claims is critical to its success.

For example in 2009  NACA and over 350 homeowners protested at some of the lenders’ CEOs’ estate homes demanding the banks take responsibility for the financial carnage they created.  Also, Bruce Marks and homeowners frequently protest against banks at congressional hearings (see video protesting during testimony by Chase Bank).

These controversial tactics and publicity, however, have worked.  NACA has contracts with major lenders and servicers who are participating in NACA’s Save the Dream Tour and  giving loan modifications.  Participating Lenders include Bank of America, Chase (includes EMC and Washington Mutual), Citigroup, Wells Fargo, GMAC, HSBC, and Indy Mac/OneWest,.

Now, however, the Banks want to take Mr. Marks and NACA down, and apparently, their pressure on the government is working because HUD’s Secretary Shaun Donovan  is proposing the defunding of NACA which would put an end to what appears to be the most effective loan modification assistance for Americans.

What can you do?   Speak out and defend NACA.  Call and e-mail HUD Secretary Shaun Donovan and Treasury Secretary Timothy Geithnerand.

NACA suggest some good questions to ask are:

Why is HUD trying to destroy NACA, the most successful program to prevent foreclosures?

Why won’t it meet with NACA over this issue?

Why do you propose to defund NACA when the government’s own programs purporting to “help” American homeowners have been failures?

Instead of destroying NACA why don’t the government programs learn from NACA’s success?

HUD Secretary  Shaun Donovan  can be contacted via e-mail  Shaun.1.donovan@hud.gov  or phone: (202) 708-1979

Treasury Secretary Timothy Geithner can be contacted by  e-mail:  Timothy.Geithner@do.treas.gov  or phone number (202) 622.1100.

Call or e-mail your Congressperson and Senator as well.

To join NACA’s Defense Committee contact NACA at email:  Defenders@NACA.com or call its Campaign Coordinator, Daniel Perez at (617) 250.6222 ext. 1218.

Per NACA:  “Your Support is Crucial – Defend NACA”

To volunteer at NACA’s Milwaukee Save The Dream Event attend the August 4th Volunteer Meeting at Frontier Airlines Center at , at 4th Street & Wisconsin Avenue

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property – until their children wake-up homeless on the continent their fathers conquered.”
Thomas Jefferson, 1802

For further information on volunteering at a Save the Dream Event, contact Ruth Saldana at rsaldana@naca.com.   Go to NACA.com for schedule of Save the Dream Tour.

Loan Modifications – NACA’s Save the Dream Tour – Who Qualifies – What to Bring

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HUD Deploys Nearly $200M in Emergency Funds for the Unemployed


DSNews – By Carrie Bay

The U.S. House of Representatives voted to pull the plug on HUD’s Emergency Homeowner Loan Program last month, but that hasn’t stopped HUD from moving ahead to put the money into the hands of distressed homeowners. The fund was established to provide zero-interest bridge loans of up to $50,000 for unemployed homeowners to continue making their mortgage payments while they look for a new job. HUD just deployed nearly $200 million of the $1 billion allotted to state agencies.   Read More

C.A.R., Fannie Mae launch short sale assistance desk


 CAR Newstand
Altadena Home

Altadena Home

March 31, 2011

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today announced it has partnered with Fannie Mae on an initiative designed to help REALTORS® quickly resolve issues that may arise after a short sale offer is made on a Fannie Mae-backed loan.

The Fannie Mae Short Sale Assistance Desk (“Assistance Desk”) provides brokers and agents the ability to significantly shorten the time they have to wait for approval on Fannie Mae short sale transactions and helps real estate professionals with the handling of post-contract issues such as loan servicer responsiveness, the existence of a second lien or issues involving mortgage insurance.

 

 

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Behind the Banks’ Verbiage on Loan Modifications


Maxine Waters’ Futile Attempts to Speak to Banks about Loan Modifications for her Constituents:

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property – until their children wake-up homeless on the continent their fathers conquered.”
Thomas Jefferson, 1802
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