Friday, March 21, 2008

Predatory Practices Reach Epidemic Proportions : How Many Families Must Be Destroyed?

The brazen fleecing of our elder citizens seems to get worst by the day with an out of control Judiciary system that rubber stamps the take over of elder finances in contrary to the the spirit of the laws that are clear on how Guardianships are to be established and used in the event that the elder has no one to look for him/her, is it any wonder that others are following suit in the feeding frenzy that follows . Our Question and that of our readers is :

How Bad does it need to get before our lawmakers take action ? How many families must be destroyed ?

In August 2007, investigator Eric Bremner found evidence in a shredder at Olympic Escrow that he says confirmed borrowers' complaints that they had never signed the mortgage documents that pushed them into a financial hell.

Bremner found pieces of documents that had been cut to remove signatures and notary seals. Loan applications, escrow agreements and other documents had signatures that had been taped on, he said.

"That validated the statements that the victims had been making over and over again: That they did not recall signing these documents and they did not agree to the terms of the loans they were given," says Bremner, a senior investigator in the real estate fraud unit of the San Bernardino County district attorney's office.

The discovery was the turning point in an investigation that led to this week's closure of seven brokerage and escrow companies in an ongoing campaign against predatory lenders.
A single family is suspected of leading an operation that processed thousands of home loans in California during the past several years in a widespread refinancing scam.

The case has brought renewed calls for tighter regulation of the troubled mortgage industry that threatens to take the U.S. economy down with it.

Experts say the fraud occurred in a weak regulatory environment in a business that offered huge financial incentives to brokers willing to cheat.

"There's no regulatory oversight," said Dustin Hobbs, communication director for the California Mortgage Bankers Association. "Like these people found out, until you file a complaint, there's no oversight of these brokers."

Prosecutors call it the most brazen case they have seen, and an operation that slipped past loan officers and regulators in a booming housing market fueled by greed.

Abridged =>>

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