AAMA Report

Embed Doc
Copy Link
Readcast
Collections

CommentGo Back

Download

SPONSORSHIP OF REPORT

Preparation of this report was conducted byAmericans Against Mortgage Abuse™ [AAMA].AAMA is a newly formed nonprofit established tocombat predatory lending. AAMA’s mission is “todefend and protect Americans and the Americandream of home ownership from unlawful, fraudu-lent , criminal, unethical and illegal acts.”

Our Goals Include:

1.Author and conduct consumer and educationalresearch into predatory mortgage lending andmortgage abuses;2.Author editorials, articles and reports on preda-tory mortgage lending and mortgage abuses;3.Cause predatory mortgage lenders to cease theirpredatory lending practices;4.Cause predatory mortgage lenders to changetheir policies, practices and procedures;5.Cause predatory mortgage lenders to provide fair,reasonable and just compensation to the victimsof their predatory mortgage lending abuses;6.Conduct and sponsor seminars and conferenceson combating predatory mortgage lending;7.Create a “databank” and “database” of predatorymortgage lenders, their executives and employ-ees including their direct business and homephone numbers, home addresses, names andnumbers of spouses, neighbors and family mem-bers;8.Create a “databank” and “database” of predatorymortgage lending articles, reports, complaints,cases, litigation, policies, memos, codes, anddocuments for regulation, litigation, and corpo-rate resolution support;9.Define forms and types of predatory mortgagelending practices, schemes and abuses;10.Draft, propose and put forth corporate resolu-tions, ordinances, regulations and laws on preda-tory mortgage lending;11.Educate consumers, the public, the courts, Con-gress and corporate America on predatory mort-gage lending practices, frauds and schemes andtheir consequences;12.Expose predatory mortgage lenders, their lead-ers and supporters;13.Focus attention on the national and commu-nity crisis of predatory mortgage lending;14.Infiltrate predatory mortgage lenders and exposetheir illegal, fraudulent and criminal behavior;15.Insure that banks, investment firms and mort-gage servicers comply with Federal and state lawsand regulations;16.Investigate and confirm predatory mortgagelending abuses;17.Organize protests, boycotts, letter writing, e-mailand telemarketing campaigns against predatorymortgage lenders, their leaders and supporters;18.Provide regulators, lawyers, press, media, civicgroups, Congress, State AGs and others investi-gating predatory mortgage lending with a “blue-print” and “genetic” map of how predatory lend-ers operate their various schemes, scams and pro-gramming methods;19.Shed focus and light on predatory mortgage lend-ing practices; and20.Support “fair” and “reasonable” alternatives tolitigation in predatory mortgage lending cases.

PURPOSE OF REPORT

The purpose of this report is to provide indi-viduals and organizations examining, investigatingand studying predatory lending and mortgage abuse.Whether you are a journalist, law maker, lawyer, con-sumer advocate, banker, mortgage servicer, regula-tor or investigator, this report is designed to provideyou useful and topical facts, information and dataon predatory lending.

Our Objectives Include:

1.Create A Definition Of Predatory Lending;2.Defining Various Forms Of Predatory Lending;3.Highlight Predatory Lending Practices;4.Offer Recommendations & Suggestions;5.Outline Schemes, Scams & Abuses; and6.Provide Information, Facts & Data On Preda-tory Lending.

Before we begin, did you know that:•U.S. Government studies report that up to 70%percent of home mortgage loans contain errors?•Accounting errors in home mortgage loans canrange from a few hundred dollars to tens of thou-sands of dollars?•These so-called “errors” are in many circum-stances complex and fraudulent accountingschemes that banks and mortgage companies useto “play with your money” to generate additionalcash flow, income and profits?•Most banks and mortgage companies know thatyou won’t ask how they “calculated” the “pay-off” or principal balance figure they quote you?•A well-known bank once charged a customerover $3000.00 per month for five months [over$15,000] of escrow payments when the annualtaxes were only $2,608.28 and monthly P & Ipayments were only around $790.00?

A PREDATORY LENDING PRIMER

•A well-known mortgage servicer owned by amajor Wall Street investment bank refers to itscustomers as “smucks” in their policy manuals?•Some banks and mortgage companies have fore-closed or are foreclosing on homes, notes anddeeds of trusts they don’t even own or have aright to?•Well-known banks and mortgage companies inFlorida are lying and providing perjured testi-mony, false affidavits and frivolous pleadings incases involving mortgage foreclosure to courtsin Florida?•You or your family members and friends may beunknowingly be contributing to these abuses byhaving investments in your own IRA’s, stocks,mutual or pension funds that are holding mort-gage backed securities that deal with subprimelending?

White-Collar Mafia Uses21st Century Loan Sharks To PreyOn Helpless Americans!

For the majority of Americans, their home is the largest single asset they will ever own. Home ownershipis part of the American Dream. Yet today, many elderly, minority, disabled, disadvantaged and non-Englishspeaking Americans are living the American Nightmare rather than the American Dream.Their dreams of home ownership and financial security are being stripped away by 21st Century loansharks backed by a new white collar Mafia. Instead of using guns and knives to intimidate and to rob theirvictims, the new weapons of choice are phones, computers, computer programs the mail and unscrupulouslawyers. These extortionists, con-artists and predators inflict harsher pain, suffering and injury upon theirvictims than a local loan shark can.Instead of breaking bones and knees, this new breed of crooks breaks dreams, lives, livelihoods and fami-lies. They illegally take away their victim’s homes, ruin their credit, destroy their families and damage theirbusinesses. Often, the scars left by these criminals last years and even a lifetime that takes longer to heal than abroken bone.

AMERICA’S NEW “WHITE-COLLAR MAFIA”

They use any one of the dozens of “predatorylending” practices which we are too accustomed toseeing and hearing each day. Predatory Lending iscurrently the focus of dozens of Federal and Stateinvestigations by regulatory and legal agencies. TheU.S. Congress and many state legislatures and citycouncils are considering laws and ordinances to pre-vent its spread. According to recent reports, over 35States are cracking down on predatory lending.Predatory lending bills introduced in state legisla-tures have already fulfilled predictions of becomingthe year’s hot issue.Congress has its own national bill. Rep JohnLaFalce, D-N.Y., the ranking minority member of the House Banking & Financial Services Commit-tee, says “Consumers with flawed credit histories arein some cases being preyed upon by financial insti-tutions that offer more than they deliver. I believethe committee could benefit from a comprehensivehearing devoted to the issue.”Many of the proposed state predatory lendingbills lower thresholds found under federal regula-tions. Minnesota’s bill reduces the ability of mortgage lenders to charge points and fees and itvirtually eliminates balloon payments.Brian Israel, president of the Illinois MortgageBankers Association, expressed concern that preda-tory lenders are, in the eyes of legislators, giving allsubprime lenders a black eye. “Predatory lending isnot synonymous with subprime lending,” This hasbecome the primary “mantra” of banks and servicerswho are finding it hard to justify an 18% mortgagesold to an 80 year old woman with little or poor credit,but 80% to 100% equity in her home.Members of this new “white collar Mafia” arerather hard to distinguish for they don’t look like theguys in Goodfellas, the Godfather or any of the ur-ban street gangs you have seen on television. They’renot even from Italy, Latin America or the Far East.These unassuming men and women live in mod-est to upscale neighborhoods and are attired in AnnTaylor, Brook Brothers or Armani suits. They caneven be the new next door neighbor or the personsitting next to you in your church or synagogue.They earn from $35,000 to over $20 milliondollars per year in their new career. They are titledloan collectors and “foreclosure specialists” at a mort-gage servicer to the CEO and chairman of a Fortune500 company or Wall Street investment bank.They don’t deal drugs, supply arms, run num-bers, fix horse races or take money for protection.Yet, they have a worldwide distribution network inthe hundreds of billions of dollars. Each day they goto work with the goal of devising new complex fi-nancial derivative products, accounting methods,models, and schemes that stay one step away fromthe regulators and one foot ahead of the law.You may be familiar with the term “using otherpeople’s money.” It became popular in the late 80swhen real estate scam artists sold millions of get richquick kits showing how to buy and sell real estatewith little or no money down.Now, in an effort to increase personal salariesand bonuses and corporate earnings, profits, returnson investment and stockholder dividends they preyupon the least educated and less fortunate Americans.

of 00

Leave a Comment