Saturday, April 30, 2011

Arizona Representative Drops Chain of Title Notification Provision After Apparent Bribe by Servicer « naked capitalism

More unbelievable BS from the banks and the politicians.  Funny how the AZ rep gets a loan mod that is a 56% principal reduction after two previous failed requests for loan modification.  The coincidence is that the Az Rep was set to initiate a bill that was very unfavorable to the banks.  It looks a little like bribery.

From Naked Capitalism

"When Rep. Seel was asked what had happened to prevent him from showing up on time to propose the amendment, he explained that he had decided not to propose it because he was told there was no chance of it being adopted… something about it not being “germane,” whatever that means.

One thing though… from what Darrell explained to me, Carl Seel must have been in a very good mood the day of his unexpected tardiness, because even though he had been previously turned down twice for his own loan modification, two days before he showed up too late to propose the amendment, Ocwen granted him a PRINCIPAL REDUCTION that reduced his mortgage to $88,000 from roughly $190,000… that’s a reduction of approximately 56% give or take a few points one way or the other.

Now that is lucky, was all I could think to say. Really lucky, considering it was Ocwen, a servicer I’ve been told is among the most difficult when it comes to modifying loans. In fact, it’s almost like being the single-ticket-lottery-winner-three-days-in-a-row kind of lucky, wouldn’t you say?

So, how did Darrell know about the fortuitous timing of Mr. Seel’s generous principal reduction?

It’s quite simple really… Seel hired him to help him with his loan.

You see, according to Darrell Blomberg, Rep. Seel had asked him to conduct an audit of Seel’s trustee sale in an effort to postpone his own home’s sale, which had been scheduled after his servicer denied his loan modification application for the second time. And Darrell had forwarded the results of his examination to Ocwen in a letter outlining several discrepancies in an attempt to delay the sale date.

As a result of that close involvement, Darrell says he personally saw the paperwork indicating both the trustee sale was being cancelled and that the significant principal reduction was being granted as part of Seel’s loan modification. He even went over it with Seel, telling him he hadn’t seen many… if any… like this one.

If you are in Arizona, demand an ethics investigation. This isn’t even subtle. And it won’t be hard to find plenty of industry insiders like Blomberg who will attest that the Ocwen mod isn’t just irregular, it’s unheard of. "

Arizona Representative Drops Chain of Title Notification Provision After Apparent Bribe by Servicer « naked capitalism

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