Boycott First Guaranty Mortgage Corporation And Coester VMS Who Are Scammers And Con Artists Engaging In Discrimination While Ripping Off People Seeking Mortgages

First Guaranty Mortgage Corporation

Beware of the companies First Guaranty Mortgage Corporation and Coester VMS, as they are discriminating against minorities, people with disabilities and immigrants, who apply for mortgages. This is illegal in America and violates federal and state laws. However, they are doing this. First Guaranty Mortgage Corporation uses the faulty appraisal company, Coester VMS, who collects hefty fees, then undervalues properties, destroying good real estate deals. This also allows others affiliated with them to swoop in on equity laden properties, such as those under foreclosure that are up for sale, despite the fact mortgage applicants found the properties fair and square.

 

Coester VMS (Value Management Services)

First Guaranty Mortgage Corporation leaves the appraisal process for last, running up thousands in fees that mortgage applicants must pay in order to obtain a loan. By the time mortgage applicants are thousands of dollars into the process, thinking their loan will close on the date issued, within a couple days of closing, First Guaranty Mortgage Corporation calls the entire thing off.

First Guaranty Mortgage Corporation

This costs mortgage applicants thousands of dollars in real estate fees. Then, First Guaranty Mortgage Corporation will encourage mortgage applicants to find another property to start the paperwork heavy process all over again, running up thousands of dollars in additional fees. Buyer beware. Avoid First Guaranty Mortgage and Coester VMS. Seek your loan and appraisal needs elsewhere, lest you lose thousands of dollars and waste valuable time.

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David Moyes Fired As Manager Of Manchester United Affirming This Site's Previous Claims

David Moyes (Photo comparison courtesy of a Twitter user)

50-year-old Manchester United manager (coach), David Moyes, who assumed the reins from legendary fellow Scotsman, but proceeded to make ill-advised changes to one of the biggest football (soccer) clubs in the world, has been sensationally sacked today after 10-months on the job. In the October 3, 2013 article "Sir Alex Ferguson's Insightful Interview With Charlie Rose" the Judiciary Report stated: 

"Life after Ferguson has been rough for Manchester United. Ferguson's successor, whom he appointed, has made some decisions I do not agree with. The Telegraph reported new manager, David Moyes, fired much of Ferguson's coaching staff, people the team are used to and rely on, in favor of his folks he brought in. It was a mistake discarding the winning blueprint left behind by Ferguson. All great leaders leave a solid blueprint behind, whether it be sports, business or politics. 

This past weekend Moyes also told the team and the world, via an interview, he does not believe Manchester United has a chance at winning Champion's League. I was stunned a manager/coach said something like that. Even if he believes that, you don't tell a team/athlete that. It was surprising to read a man on Moyes' level do that (not that I'm complaining as Manchester United's rival Arsenal is my favorite). However, right is right and wrong is wrong and you just don't say things like that to your athletes. 

Having stated that, I have to wonder how Ferguson feels about Moyes firing his coaching staff and telling the team forget about winning Champion's League because you won't. I would love to state it's reverse psychology, but I know better - it was just a terrible idea. 

I watched an old Mike Tyson fight a few weeks ago, remembering how much (my family and) I loved to watch him box when I was a kid in the 80s, especially the way he'd quickly knock people out. Seriously, if you quickly went to the kitchen for some water or the bathroom to pee, you'd miss the fight. Tyson would crick his neck, then promptly kick your butt. 

Tyson went into the ring with the attitude and visage of a gladiator. He didn't flinch and tried to psych out his opponents before he even threw the first punch. It was his game face and it worked. Tyson stated if he stared you down with confidence and you flinched, he knew he had you (meaning you were going to lose the match). Moyes telling the world Manchester United won't win Champion's League was a major flinch empowering rivals. Call it the flinch "heard around the world." 

Psychology is a big part of sports. Lining up the mind with the body creates a better performance. A demoralized, panicked and unsure mind will translate into an inferior performance. If your own manager/coach is telling you your not going to win, that's how you're going to play, riddled with doubt and defeat the minute you get out there..." 

Well, 7-months later Manchester United has firmly imploded, with their worst finish in the club's storied history. There's a phrase that goes, "If it ain't broke don't fix it." Herein lies David Moyes mistake at Manchester United. As stated on the site over 7-months ago, Moyes should not have fired Manchester United's preexisting, championship winning coaching staff, replacing them with his own associates.

He could have simply brought in a couple people he's worked with if it was that important to him (paid for out of his salary). He tampered with a winning formula and additionally removed the players' security blanket of familiarity in sacking everyone they'd worked with for years. 

David Moyes

One should only deconstruct and put back together badly losing teams. You shouldn't wreck winning title holders. It's like crushing/leveling a field with a perfectly ripe crop, rather than harvesting the fruits and vegetables on the trees. You only break up dry, fallow ground, planting new seeds and watering and nurturing it into a great crop. 

A handful of people online have blamed Ferguson for choosing Moyes as his successor, but the latter deviated from the former's instructions. Ferguson left a blueprint behind that Moyes discarded, in favor of his own plans and unproven people. Once again, against the former manager's advice, Moyes fired Ferguson's winning coaching staff, replacing them with his own people. 

Another problem was based on his expressions, Moyes always looked like he was in over his head, with the pressure of having moved to the then top club in the league getting to him. He looked perpetually panicked and doubtful, with expressions that became online memes on social networking. To rival managers, such expressions is the equivalent of sharks sensing blood in the water and they pounced on Moyes. His squad also picked up on it and became dispirited and doubtful. They were no longer confident and it showed in their expressions and body language on the pitch. It impacted their play. They weren't playing like Manchester United anymore. It's as though they forgot they were the reigning champs. 

Arsene Wenger of Arsenal has a serious expression during matches, like he's reasoning and thinking about maneuvers. You really don't know what he's thinking based on his expressions and that's how it should be. He has many wins and accomplishments under his belt. As I've stated on Twitter, Jose Mourinho of Chelsea reminds me of Dr. Evil, but with hair and a tan (LOL). He issues aggressive, demoralizing quotes to opponents, in the vein of Dr. Evil, intimidating rivals before they even hit the pitch. He stands on, not beside the pitch (dude, you know you're really not supposed to do that LOL) with his game face on and it works. 

 

Ferguson, considered the top football manager in history, looked confident and intimidating during games, chewing the life out of his chewing gum like he was holding a grudge against it and anyone who tried to beat his squad. He'd stare people down like a gangster (LOL). He always had that "I'm more of a man than you" look on his face to intimidate rivals and it worked. 

At the end of the day, football is also a business. Poor results on the pitch impact the bottom-line and ticket/merchandising sales will decline. Bills don't pay themselves. Old Trafford's massive grounds costs money to maintain and the staff needs to be paid as well. The same goes for all teams. The Glazers borrowed a whopping $1.3 billion dollars against Manchester United. The loan must be repaid and poor results on the pitch unquestionably jeopardizes their ability to meet their financial obligations.

Alex Ferguson

Some state Moyes can console himself with his pay, but no one who loves football wants to experience what he did (he made some wrong turns that backfired). Money doesn't fix that when it comes to career fulfillment in wanting to do very well via great results on the tables. However, Moyes can recover in another post and with a $6,000,000 check to fall back on for 10-months work at Manchester United. It's not the end of the world. In life you have to learn to laugh at yourself and be resilient.

Side Bar: Coaching is in my blood. I think I would make a decent terrifying football manager. I'd probably be in trouble with the league every week, though:

Disciplinary commission: You were overheard telling a striker to FLING a rival out of the way on the pitch.
Me: No, you misheard. I told him to SING to him in a gesture symbolic of brotherhood, freedom and love. "Let freedom ring!" You know how much I love music.

Then, after I was unjustly cleared on the flagrant violation of league rules, I'd privately commend my offending player laughing, "Did you see how he went airborne when you flung him out of the way and scored that goal. He should totally get air miles for flying across the pitch like Superman. There will be something extra in your check for that." I'm just kidding. I have to state that because I don't want this article working against me in the future (LOL). 

In all honesty, it would be wonderful to build a team from the ground up in the lower league, then help it rise to the top.

IRS Slaps Jermaine Dupri With Another Massive Tax Lien

Jermaine Dupri

Former rapper and music producer, Jermaine Dupri has been hit with another massive tax lien from the Internal Revenue Service (IRS). The IRS just loves you (um, no they don't). Previously, Dupri borrowed $4,000,000 against his music catalog (is it really worth that) to pay the IRS and state taxes in Georgia. Suntrust has sued him stating he defaulted on the loan.

Now the IRS is back with a vengeance stating Dupri is delinquent on his taxes again and $800,000 is owed to the agency. Maybe Dupri can call his ex-girlfriend, Janet Jackson, whom he cheated on with a stripper he knocked up and ask her to borrow money now that she's married a billionaire (sarcasm).

At the height of Dupri's fame he was very cocky with his money, rubbing people's faces in it. He treated a number of people in the industry badly, resulting in lawsuits for theft and fraud. Dupri's burned many people and now his lavish lifestyle he stole from a number of writers and producers to maintain has caught up with him.

STORY SOURCE

Jermaine Dupri The Tax Party Continues ...

Jermaine Dupri is SO SO Def screwed ... Uncle Sam just slapped the hip-hop mogul with a giant tax bill ... to the tune of $800,000. According to two separate tax liens filed by the IRS (everyone's fav government agency) ... Dupri needs to cough up tax dough from the years 2008, 2010 and 2011. Here's the breakdown:

2008: $646.47 (not so bad)
2010: $140, 889.76 (could be worse)
2011: $657,156.12 (hello, worse)
Grand total allegedly owed -- $798,692.35.

http://www.tmz.com

Mary J. Blige's Money Woes Continue As She Is Hit With A $900,000 Tax Lien

 

Mary J. Blige: I owe how much?

 

The money problems of R&B songstress, Mary J. Blige, continue to mount in a very noticeable way, as it is being report she has been hit with a $900,000 tax lien. This comes on the heels of lawsuits by two banks stating Blige owes millions of dollars in two loans she has defaulted on.

 

Mary J. Blige's costly house in New Jersey

The singer's sprawling 8-bedroom mansion in Saddle River, New Jersey, which she purchased for $12,300,000.Blige five years ago, continues to languish on the market with no buyers. Purchasing and maintaining such a large property (mortgage payments, taxes, insurance, cleaning, landscaping) has definitely drained Blige's resources, pushing her to the brink of financial collapse. If Blige can successfully sell her home, many of her money problems would be erased. 

Millionaire Singer Justin Bieber Was Turned Down For A Home Loan On $7,000,000 Mansion

Justin Bieber and Selena Gomez

Millionaire pop star, Justin Bieber, 18, was recently turned down for a home loan. What exactly did he try to buy? An island. Actually no. Bieber was attempting to purchase a $7,000,000 Hollywood mansion and was told to kick rocks by bankers, when the appraisal value came in below the asking price.

Bankers told Bieber to kiss home loan goodbye

Bieber has been living in sin with Disney actress, Selena Gomez, 19 and seeks a mansion for them to move into, rather than sharing hotel rooms, rented homes and apartments. He has viewed a few homes in Los Angeles, mainly Calabasas, but has his eye on one in particular, which as mentioned above, does not match up to the appraised value. This would mean, buying it cash at the current asking price, could mean immediate negative equity, especially with home values continuing to decline.

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STORY SOURCE

Justin Bieber has been denied a mortgage, so he is currently without a love nest

The Small Business Association Lacks Money To Help Americans While Solar Companies Given Billions Then Fail

Barack Obama

A friend asked me to research grants online for her and I was amazed at what I found. As many of you know, a few of President Obama's top campaign donors were given tens of billions of dollars in taxpayer funds to start solar companies that went on to fail in a major way between 2009-2012.

Yet, now when you check the Small Business Association (SBA), which for many years gave grants and training to people in America to start their own businesses, all you'll see is a message that states, "How do I get a small business grant? At this time, Congress has not set aside any monies for grants to start and/or expand a small business..." (http://www.sba.gov/content/how-do-i-get-small-business-grant).

I remember during the Clinton Administration, if you took a six week course with the Small Business Association and formulated a decent business plan during said time, the SBA would give you $5,000 to start your own business, which helped a lot of people and created revenue streams via entrepreneurial endeavors in America. The $20,000,000,000 President Obama gave to a handful of companies such as Solyndra, which all went on to fail in the solar industry, could have gone much further in the economy as smaller grants and loans at the Small Business Association.

Obama's business plan helped a few campaign donors that blew billions, when it could have helped thousands of entrepreneurs with a greater probability of success in local communities all over America. I have only one question. Why?

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Most Homeowners Are Not Using Modification Programs And It Is For A Reason

Barack Obama

A statistic released on the mortgage crisis revealed only a fraction of Americans, who are eligible for the modification programs, have taken part in it. The government is perplexed, why I don't know. A number of people I have spoken to that are trying to obtain modification loans told me the banks are making it as difficult as possible to do so.

One person I know, who paid tens of thousands down on her home of 10-years, told me she sent in the documents to the bank several times to obtain a modification, even using tracked mail, which shows the bank received the documents, yet each time they told her, "We did not receive it." So it's their word against Fedex and the U.S. Postal Service.

She finally obtained a modification by going to a service and paying a woman $800, who has a connection at the bank and she finally received the modification, after trying unsuccessfully for nearly a year. The fact of the matter is the banks are not cooperating with homeowners.

In another case, I filed bankruptcy for a neighbor, who sought my advice. I did so without charging. I was concerned that due to her preexisting health problems she would have a stroke, because of the stressful and unethical way creditors were coming after her. After filing Chapter 7 for her, I quickly submitted the necessary paperwork to the bank indicating she would keep her home of two decades and continue with the payments they kept inflating. I sent it registered mail with the U.S. Post Office.

The bank pretended they did not get it, even telling me that over the phone, prompting me to read off the delivery confirmation number and the fact the U.S. Postal Service did deliver it to them. Within seconds the bank's representative said "Oh, here it is. I found it. Sometimes the computers don't show it." While I'm thinking, yea, if you say so. My friend has a lot of equity in the house and the bank wanted to take it and began walking along that treacherous path to do so.

In another case, another person I know sought a modification in an attempt to consolidate an inflated first and second mortgage and for over a year got nowhere with the bank. They kept pretending and giving her the run around. She then went to a service who said they would help her, but demanded she pay $2,000 per month for a year in order for them to do so. That's $24,000 that could have gone to paying down her mortgage and she was given no guarantees they would actually succeed, so she is still trying to fix the first mortgage, having disposed of the second one on her own.

According to CBS News, the government did not properly advertise many of its programs to help people, so the deadlines came and went to enroll and people did not get the help they needed. Many of these foreclosures would not have happened in the first place if the government had proper legislation in place preventing banks from significantly raising interest rates on balloon mortgages, which put many people out of their homes, as they simply could not afford to pay double the mortgage they once did.

Some foreclosures were due to people taking on homes they could not afford, which is regrettable, but many were due to interest rates mysteriously rising in what appears to be banks colluding with each other and it put many Americans out of their homes. The government should have used legislation to put a cap on how high interest rates could go, in relation to the principal of a mortgage and a person's income.

I know people whose mortgages went from $1,300 to $3,500 or $400 to $950 and if you are on a fixed income, like the average American, where are you supposed to find that extra money. Overnight some people's mortgages began to exceed their monthly income.

In short, the government is not doing a good enough job in making sure people get the help they need and many folks are being ripped off and left disappointed by so-called modification service companies. The government, on a basic human level, need to do better, as it is a terrible and traumatic thing to lose one's home.

If appealing to the government's conscience doesn't work, they should think about it this way, if you don't help the people that need it, they are simply going to vote you out, then you'll be jobless too. That goes for Congress as well. They are going to step in that ballot box, remember they lost their homes under your tenure and vote out the corresponding politicians they felt did nothing to correct the problems.

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Artificial Growth - Part 2

Artificial Growth

Mortgage Malignancy

U.S. President Barack Obama

The mortgage crisis in America has become worse than when the problem first exploded in 2008. Banks are forging ahead with what amounts to the repossession of America, with some foreclosures initiated under fraudulent circumstances. Stock prices and revenues have become more important than seeking the truth. Sadly, many people will be turned out of their homes, due to the mess the government let transpire.

A few years ago, many Americans were deceptively drawn in by the refinance craze, advertised day and night on television, radio, in the newspapers and on the internet. The deceitfully worded ads flooded airwaves and print, promising to improve Americans' financial problems, by giving mortgage holders a better interest rate. They even promised to put a little money in homeowners' pockets to pay off bills, such as credit card balances and car notes, whilst consolidating all debts under one home loans at a low price.

These claims turned out to be a pack of lies for millions of unsuspecting people, as interest rates shot up and mortgages ballooned, breaking their budgets, as their month payments reached an untenable dollar amount. Americans were expected to mysteriously find the money from somewhere, to meet the monthly mortgage extortion sum and when they couldn't, foreclosure proceedings were instituted.

U.S. Congress

Many attempting to save their homes have been met with terrible mortgage scams, such as signing over one's deed, allegedly on a temporary basis, to allow a third party with good credit and great income to obtain a low interest rate loan. Then, they would allegedly surrender the property back to the owner, for a small fee, with a new, lower mortgage payment. Only for homeowners to find out their properties were sold out from under them, when they "temporarily" turned over the deed to a third party.

Others sought lawyers and refinance firms, promising to fix their financial woes, for a monthly fee, only to place them in greater debt with no tangible results. Congress failed the American people in a terrible way, as some members of the legislature, were in bed with the banks, receiving favorable loans with rock bottom interest rates (very low payments), to secure their votes in the House and Senate.

Thus, the corrupt financial practices were waived through by unscrupulous members of Congress, some of whom seem like they've been in there forever and were there when the Declaration of Independence was signed. If you can remember when you used to ride to Congress on your horse, it's time for you to retire, as you are clearly apart of the problem, having failed to remedy the nation's problems.

Obama Touts Small Business Initiative

U.S. President Barack Obama

U.S. President Barack Obama gave a speech today in the White House's rose garden (see: backyard) addressing the small business initiative, he states he is on the verge of passing.

Obama opposes tax cuts for the rich, which the Judiciary Report has been against from the beginning as well. However, the president is seeking to spend billions, once again, in what may end up squandered and misappropriated, as in past cases of stimulus waste.

Small businesses need the assistance, but the Obama Administration, is not doling out the funds correctly, leading to theft, fraud and wasted opportunities, as seen with the job stimulus, which has been a failure. Each time this occurs, the U.S. taxpayer takes a significant financial hit, which is unfair.

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Artificial Growth - Part 2

Damon Dash Loses His Two Condos

...And His Fortune

Damon Dash and wife Rachel Roy

Last month, one time Rockafella Records CEO, Damon Dash, lost two condominiums in New York to foreclosure, one valued at $5,500,000 on 25 N. Moore Street and the other $1,500,000.

25 North Moore Street in New York City

Dash took out excessive second mortgages he was no longer able to pay, causing the properties to revert to the lenders. He attempted to sell the two New York condos, before the banks seized the properties, but due to the fact Dash had obtained inflated equity loans on the units, no one would purchase them at the over-valued selling price.

Damon Dash Beverly Hills home (photo courtesy of the Real Estalker)

Dash also owned a mansion in Beverly Hills, which he attempted to sell at $3,800,000, which was for more than it was worth, destroying any reasonable sale.

Over the past two years, Dash lost licenses to produce Keds Sneakers, Armadale Vodka and Tissot watches. Previously, he sold his financial stake in Rockafella, whose market value, former partner, Jay-Z, greatly exaggerated. Jay-Z is headed in the same direction, with multiple failed businesses and dirty dealings, constituting felonies.

Damon Dash and Jay-Z

Dash's lifestyle and that of his wife, far exceeded his income, as it was so lavish and jet set, he accrued bills more suited to the financial frame of Michael Jordan. Too often, people in the music and film industries, place too much emphasis on outward appearances and as a result, spend well beyond their means, believing money will always be coming in, when that's often not the case.

The European Union Bails Out Greece

Hellenic Parliament in Greece (Photo credit: Michalis Famelis)

The European Union has come to the financial rescue of Greece, for fear the financial collapse of the nation, will affect other countries in the region as well. One trillion in bank loans have been guaranteed, with the proviso, Greece reforms its financial system.

U.S. Deficit To Hit All Time High

U.S. President Barack Obama

U.S. President Barack Obama is seeking to implement a record $3.8 trillion budget for 2011, increasing the national deficit by an unprecedented $1.6 trillion dollars. This is trouble waiting to happen.

Unprecedented, crushing debt, can topple the federal government, forcing a complete restructuring of the national legislative hierarchy, due to lack of funds. If the national debt becomes too high, there will only be money for local government, while many federal agencies would face the chop.

One cannot keep pressing up money and expect foreign nations will keep opening their coffers to dole out generous loans, if repayment is painfully not possible, due to dire financial straits. Too much spending is going on and too little saving.

Deficit to Hit All-Time High

JANUARY 31, 2010, 7:36 P.M. ET - Obama's $3.8 Trillion Budget Forecasts a $1.6 Trillion Shortfall for 2010 Before It Drops.

WASHINGTON—President Barack Obama will propose on Monday a $3.8 trillion budget for fiscal 2011 that projects the deficit will shoot up to a record $1.6 trillion this year, but would push the red ink down to about $700 billion, or 4% of the gross domestic product, by 2013, according to congressional aides.

The deficit for the current fiscal year, which ends on Sept. 30, would eclipse last year's $1.4 trillion deficit, in part due to new spending on a proposed jobs package. The president also wants $25 billion for cash-strapped state governments, mainly to offset their funding of the Medicaid health program for the poor.

http://online.wsj.com

Cash Advance Engaging In Financial Fraud

Beware of the company Cash Advance that also goes by the name Advance America (www.advanceamerica.net). This company gives out advance payday loans, whilst holding personal checks from customers in the event one does not repay the $500-$1000 loan.

However, they have been engaging in corrupt business practices. They have been repeatedly sending in some customers checks days and weeks earlier than the agreed upon loan repayment deadlines, creating massive overdrafts in customers bank accounts.

These are serious financial crimes, which are violations of Federal and local laws. As such, the public needs to be very careful of this company, as they can end up costing you hundreds of dollars in bank overdraft fees, defeating the financial purpose they claim they are assisting you with. They are unreliable and untrustworthy.

The F.T.C. and S.E.C. would do well to watch this company, as its employees are dishonest with money and robbing the American public, via predatory penalty and overdraft fees, during a national financial crisis.

Chris Dodd Reelection Bid Called Into Question

Chris Dodd

Senator Chris Dodd is facing difficulty in his reelection bid, due to financial scandals he has been involved in, such as Countrywide issuing him a special, discounted loan to sway favor in Congress.

The everyday citizen does not like it when lawmakers get into sweetheart deals with conglomerates that determine the quality of the goods and services they receive as consumers. Dodd has had one too many problems in this regard and it is clearly adding up.

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Senators Dodd And Kent Conrad Cleared

Chris Dodd in Trouble in Reelection Effort

December 11, 2009 11:58 AM - Chris Dodd (D-Conn) has been in the Senate for five terms, rising through the ranks to become one of the most powerful lawmakers in Congress...

For much of the past year, Dodd, who heads the Senate Banking Committee, was the subject of voter outrage for his role in the payment of bonuses to executives at AIG, the troubled firm that received a massive federal bailout.

Dodd's close connections to leading bankers are coming back to haunt him. One such connection is to former Bear Stearns director Edward Downe Jr., who once shared a condo with Dodd. After Downe's conviction for insider trading, Dodd leaned on President Clinton to pardon Downe at the end of his presidency.

Dodd's reputation also took a hit amid allegations that insurance giant Countrywide gave him "VIP" treatment in refinancing his home...

http://www.cbsnews.com

Senators Dodd And Kent Conrad Cleared

Chris Dodd

U.S. Senators, Chris Dodd and Kent Conrad were cleared of impropriety in accepting discounted loans from, Enzio Mozilo, the deposed CEO of troublesome Countrywide.

Kent Conrad

Regardless of the complaint dismissal, the appearance of impropriety is there. The mere fact they accepted favors of a financial nature, from a corrupt banking CEO that helped to bring the worst mortgage crisis in history on America and by default, Britain, France, Germany, Switzerland and Iceland, who invested in Wall Street, on which he trades, was highly inappropriate.

Senators Dodd, Conrad Cleared on Ethics Complaints

Friday, August 7, 2009; 6:17 PM - The Senate Ethics Committee on Friday dismissed complaints against Sens. Christopher J. Dodd (D-Conn.) and Kent Conrad (D-N.D.) that they used their positions of power to obtain special deals on home loans from lender Countrywide Financial.

After a year-long investigation, the committee told Dodd and Conrad that it found "no substantial credible evidence" that they violated the Senate's ethics rules. The committee found that the senators' loans were processed through the special program, but that they didn't appear to profit financially from it.

But the committee also admonished the senators, saying they "should have exercised more vigilance in your dealings with Countrywide in order to avoid the appearance that you were receiving preferential treatment based on your status as Senator."

The allegations about Dodd and Conrad are part of a politically explosive controversy about whether high-profile politicians and businessmen received special deals on home loans from an exclusive Countrywide program created by former chief executive Angelo Mozilo.

The ethics committee investigation found that participants in the Countrywide program "were often offered quicker, more efficient loan processing and some discounts."

http://www.washingtonpost.com

Corporate America Back To Risky Mortgages

President Barack Obama

Corporate America still has not learned from the lesson that is the current mortgage crisis, which began in 2008 and continues unabated.

Wall Street is back to issuing risky financial instruments, with investor money, this time via loan modifications that are costly to the American people, in greedy attempts at gaining increased revenues.

For example, there is a Miami company that charges a service fee of $24,000 for the year, at a rate of $2,000 per month, to do a loan modification, with the alleged promise, the homeowner will be free of mortgage payments for 12 months, then given a new mortgage.

However, what they do not tell you is, that year is not actually free and will be piled on to the new exorbitant mortgage, along with other miscellaneous fees.

The government needs to move quickly to put legislation in place, dictating how much companies can charge consumers for loan modification services and legally compel them to disclose all the facts relating to their service.

There are companies and lawyers lying to home owners, collecting fees, telling them they do not have to pay their mortgage for many months, while the corporate entity works to obtain a loan modification, not informing them, the debt they owe will be significantly higher at the end of the 12 months, by 20-50% above their current mortgage.

Miami is not the only place in America a new breed of mortgage fraud is transpiring in the loan modification sector of finance. The proceeding New York Times article excerpt, highlights another treacherous company, FedMod, that is being sued for defrauding 650 homeowners via deceitful loan modification programs.

Anyone that defrauds and further damages already financially distressed homeowners, should not only be sued, but imprisoned under federal statutes. There are quite a few business vultures that view this financial crisis as their time to get rich or richer. It is time for the government to act.

Back to Business

Cashing In, Again, on Risky Mortgages

Published: July 19, 2009 - LOS ANGELES — From the ninth floor of a downtown office building on Wilshire Boulevard, Jack Soussana delivered staggering numbers of mortgages to homeowners during the real estate boom, amassing a fortune.

By Mr. Soussana’s own account, his customers fared less happily. He specialized in the exotic mortgages that have proved most prone to sliding into foreclosure, leaving many now scrambling to save their homes.

Yet the dangers assailing Mr. Soussana’s clients have yielded fresh business for him: Late last year, he and his team — ensconced in the same office where they used to broker mortgages — began working for a loan modification company. For fees reaching $3,495, with most of the money collected upfront, they promised to negotiate with lenders to lower payments on the now-delinquent mortgages they and their counterparts had sprinkled liberally across Southern California.

“We just changed the script and changed the product we were selling,” said Mr. Soussana, who ran the Los Angeles sales office of Federal Loan Modification Law Center. The new script: You got a raw deal, and “Now, we’re able to help you out because we understand your lender.”

Mr. Soussana’s partners at FedMod, as the company is known, were also products of the formerly lucrative world of high-risk lending. The managing partner, Nabile Anz, known as Bill, previously co-owned Mortgage Link, a California subprime lender, now defunct, that once sold $30 million worth of loans a month.

Jeffrey Broughton, one of FedMod’s initial partners, served as director of business development at Pacific First Mortgage, a lender that extended so-called Alt-A mortgages for borrowers with tarnished credit for Countrywide Financial, which lost billions of dollars on bad mortgages before being rescued in an acquisition.

FedMod is but one example of how many of the same people who dispensed risky mortgages during the real estate bubble have reconstituted themselves into a new industry focused on selling loan modifications.

Despite making promises of relief to homeowners desperate to keep their homes, FedMod and other profit making loan modification firms often fail to deliver, according to a New York Times investigation based on interviews with scores of former employees and customers, more than 650 complaints filed with the Better Business Bureau, and documents filed by the Federal Trade Commission in a lawsuit against the company.

The suit, filed in California federal court, asserts that FedMod frequently exaggerated its rates of success, advised clients to stop making their mortgage payments, did little or nothing to modify loans and failed to promptly refund fees. The suit seeks an end to FedMod’s practices, and compensation for customers...

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