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What happens when you ask “Who owns my mortgage?”   Leave a comment

http://www.huffingtonpost.com/2011/01/05/honey-i-shrunk-the-credit-score_n_804105.html

 “…never missed a payment on his home, or even sent one in late.  Right before sending a [“Where’s the Note?”] letter to Bank of America, he’d checked his credit score — a near-perfect 780. He continued to pay on his mortgage after sending the request, only to find that his score had dropped 40 points to 740.”

 Just as I was afraid of, if you ask who owns your mortgage you are immediately punished for asking.  BofA isn’t the only guilty party, it looks like Wells Fargo and GMAC have the same practice.

Check this statement out:  Story continues below

“Bank of America doesn’t own either Marks’ mortgage or Dasinger’s — it owns the right to “service” their loans. In good times, a loan servicer collects payments and forwards them to the investors who own the loan, skimming a little bit off the top for their services. In bad times, BofA and other servicers charge late fees, negotiate new terms with troubled borrowers and, frequently, foreclose.

Servicers report borrowers’ payment history to the so-called “Big Three” credit-reporting bureaus — Experian, TransUnion, and Equifax — who plug that data into algorithms for determining credit-worthiness. Borrowers can raise disputes over items on their credit reports, which, apparently, is what the bank told the bureaus Marks and Dasinger were doing.

“Further as a member of the credit granting community, Bank of America, like most creditors, relies on the accuracy and validity of the information obtained from the various reporting agencies,” the bank said in both its letter to Marks and its letter to Dasinger. “Therefore, we will not remove the negative credit reporting from your credit file.””

So if I read this correctly BofA owns the ‘service’ portion of the loan and doesn’t actually own the loan any more, it also appears the BofA did not inform the consumer that the loan had been sold.  In addition, in these specific instances BofA “will not remove the negative credit reporting”.  BofA reported the consumer as a ‘credit risk’ because they asked WHO OWNS… and now refuses to remove the negative report damaging the consumer credit (only slightly). 

I wish Wiki Leaks would hurry up and start posting the ‘banking’ leaks they have threatened.  I think we’ll find out that most loans fall into this type of ‘good intent’ black hole(mortgage instrument owner/mortgage instrument serviceser) including car loans, seconds, etc.  In the mean time, I’m sure a ruling of ‘good intent’ will again be determined like happened after the foreclosure moratorium due to ‘illegal affidavits’.  It amazes me that the financial industry continues to do as they please instead of following the regulations that were established to protect consumers. 

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Posted January 5, 2011 by cjaaron1 in Politics

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