January 15, 2015


By Timothy Stull (http://www.fresh-start.co)

It is hard to fathom how fast the non-bank mortgage service sector has grown, and how profitable it has become.  It is a business that essentially grew from nothing, based on defaulted mortgages and the financial crisis.  Essentially it has grown from the garbage….and the garbage man is making a fortune.  Firms such as Ocwen, NationStar & Seterus now dominate this industry.  The firms within this sector think that by “servicing” debt….they don’t own the debt and they aren’t collection agencies.  Their corporate structure is set up very complex, to elude the laws surrounding the FDCPA and the FCRA.  They operate just like giant collection agencies….purely money motivated with disregard for the debtor / homeowner.  They trade the debt among each other, in search of premiums and higher profits.  All in all, it is a bad business model….even worse when you involve families, shelter and distressed mortgage debt.  Dramatically rising real estate values have also added a lot of tension to the market.  Since values are way up, there is a much greater incentive to foreclose.  Since non-bank service providers make limited amount of money collecting payments, they are notorious for padding frivolous fees and distorting escrow accounts.  Escrow distortion means that the dollars collected for taxes and insurance is hiked up significantly, thus making the payment not affordable for the home owner.  In many cases the service provider will claim there is a significant shortage that stems from prior years.  Typically, they can’t prove up the validity of the shortage.  However, they still demand the money or they will force the loan delinquent….ultimately leading to foreclosure.  Since the profit margins are huge, forcing them to correct these matters is extremely difficult.  This end of the business is the “cash cow” for non-bank servicers….they do not release liability easy.  They will fraudulently change escrow records and payment histories to make it look like the monies are clearly due.  They will also blame the escrow shortage on the prior servicer.  They will stop at nothing to collect the funds.  You can beat the other side by performing an extreme mathematical audit on all past and present financial records.  However, this is very complex and tedious process.  If you are not a math whiz, you will get lost in this process.  Most people come to me with this problem only after the have “thrown in the towel” due to frustration.  I have personally handled hundreds of these cases and can likely help you.  Feel free to call 877.297.7011 anytime for free information on this topic.

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  1. Jay Says:

    Nationstar claims to have purchased the servicing rights to my first mortgage from BOA, when they call me they usually recite the Mini Miranda, which clearly says that they are acting as a Debt Collectors. I told them that I will buy my note from them for the same price they paid BOA for it and that I didn’t agree to them purchasing it.

  2. Lesley Says:

    Heard of Taylor Bean and Whitaker?
    We were with them, refinanced in 2009, two weeks later enter Bank of America and everything went down the toilet! NOW Selene finance has it-we haven’t made a payment since early 2015 bc they REFUSED our payment and now they are pursuing foreclose!

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