Category Archives: Fraud

Consolidated Litigation Group: Lower than Pond Scum with apologies to Pond Scum

So these “attorneys” in California – home of class-action silliness – are targeting borrowers with random letters requesting said borrowers call them and be included in a class action suit of untold millions against the mean mortgage lenders.  The letters are being randomly sent to mortgagors and the pond scum have no idea what the status of the loan is – delinquent?  current? – no matter.  They found company names in public records and are proceeding from there.  The form looks like an official “government” form – which Reg Z and HUD would both have issues with.

Today a mortgagor contacted my company pretty upset with Pond Scum.  The borrower is current. Plus, we’re the originators – not the holder of the Note. We don’t service loans.  Pond Scum has wasted valuable postage.

Pond Scum’s intended purpose of course is “…to make your illegal and Fraudulent mortgage go away, seek monetary relief, stop foreclosures, and/or seek compensation for damages.” Yes, it was written just like that.  They forgot to add that their other intent is to line their greedy pockets from potential winnings of homeowners that got themselves into this mess in the first place.

Yep, there is some baaaaad paperwork out there and it involves the big banks, MERS, lousy attorneys.  No one should suffer if their lender screwed up. We take our responsibilities seriously. But I also have to ask, why were these loans made in the first place to people who couldn’t afford them? And why in the world would Pond Scum like Consolidated Litigation Group be permitted to prey on them?  There is no interest in the borrower’s fate. None. has way more on this.










Filed under Entitlement, Fraud, Mortgage

RIGHT WING EXTREMISTS Gather at the Austin Capital

About 300 or so angry right wing extremists well dressed (insincere), sporting home-made signs gathered in Austin and took over the steps of the Capital today. None of them would admit to being paid by the lobbyists or special interest groups to combat The One’s socializing of our country.

The angry mob began gathering about 10:30 a.m. to counter the moonbat’s protest that was to take place at 11. Only 4 moonbat’s were counted as being in attendance the entire time the angry mob was there. It was rumored that the moonbat’s were supposed to arrive by bus, however, said bus never appeared by the time this angry mobster departed at 12:30. Various theories abound regarding the moonbat absence from their own rally:

1. The moonbats weren’t sure how to counter any facts they would be presented with. They could only rely on their feelings.
2. They can’t spell, thus, no homemade signs.
3. They are still sleeping off last night’s kum-bay-yah party.
4. The bus company thought better of carrying them to said Capital.

There was, of course, nothing extremist about those present and opposing this bill that will turn our country into a banana republic.

What is extremist, however, is that the leader of the Free World and his leftist thugs would have the audacity to pit citizens against each other.

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Filed under Fraud, Health Care Scam, Obama, Politics

Cow Dung in the Real Estate Industry

In my 26 years of mortgage banking, I held many positions. My two favorite ones were investigating mortgage fraud and monitoring our approved wholesale broker business for early defaults, early payoffs, fraud, etc. The brokers and real estate agents I came into contact with were hard working, ethical beings for the most part. It’s a hard business and can demand a full 24 hour day just to make sure you keep the clients happy and the deal stays with you and not your competition. Many of the other brokers and real estate agents, however, were Cow Dung.

The WSJ ran an article today regarding “buy and bail,” a not so new practice that is gaining in popularity with the housing downturn. Basically, the poor homeowner can’t afford their existing residence anymore since they elected stupid financing for it to begin with. But! They have maintained an average FICO score. So, they can shop for another new home, obtain financing for it and tell the new lender they’ll lease their existing one OR that the existing residence is pending sale. Then they close on their new home. Their actual intent is to just let the previous residence go back to the bank. Good riddance! Hasta-la-bye-bye!

The Cow Dung (read realtors) that assist in these transactions see it as a personal choice. Enter Linda Caoili, an agent in Sacramento, CA, who evidently spends her time and efforts in assisting these poor, strapped homeowners in successfully defaulting on their present mortgages (and makes money doing it):

“It’s just a business decision…If you’re upside down $250,000, why would you keep it? It just doesn’t make sense.”

Ms. Caoili is working with Ms. Augustine – a day care provider who was a first time homeowner and took out 100% financing for her $426,000 home purchase in November, 2006. Gee, I wonder, Ms. Augustine: Did you initially get interest only financing, on a stated or no income program with a marginal credit score to qualify for your $426,000 purchase? You operate a day care service out of your home. Hmmm, let’s see, what did you state as your income? How much can a day care provider make working out of their home?  Let’s look that last one up on

So now, Ms. Augustine has to find a new home fast using the “buy and bail” method before the lender catches on. Ms. Caoili will assist her in this endeavor and happily pocket her sales commission, knowing she’s made one more client all the happier. And. One more lender gets screwed by mortgage fraud.

Fannie Mae and Freddie Mac better tighten those underwriting standards fast.  Or they’ll be covered in Cow Dung.

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Filed under Fraud, Mortgage Brokers, Real Estate Agents