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denied my modification and i had a heart attack, please keep us in the home not forclosure and kick us out to the streets , indymac bank is ruthless, doesnot care if your dieng they want there money,,,denied my modification and i had a heart attack, please keep us in the home not forclosure and kick us out to the streets , indymac bank is ruthless, doesnot care if your dieng they want there money,,,denied my modification and i had a heart attack, please keep us in the home not forclosure and kick us out to the streets , indymac bank is ruthless, doesnot care if your dieng they want there money,,,

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Whistle-Blower: Banks Give Homeowners the Runaround

800-Numbers Lead to Runaround as Banks Refuse to Modify Mortgages


March 23, 2010


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A vice president for one of the nation's biggest banks claims customers looking for help in lowering their mortgage payments are often told to call an 800 number -- where he says representatives then give homeowners the runaround.

"World News" has an exclusive look at how banks avoid modifying mortgages.The bank executive spoke to ABC News on the condition that ABC News not show his face or name him, because he feared coming forward would cost him his job.

Of the 1.1 million homeowners who've signed up for the federal program aimed at avoiding foreclosures, only 168,000, or 15 percent, of homeowners have had their mortgages permanently modified.

"In our managers meeting, which can last eight or nine hours, we probably addressed mortgage modifications five minutes or less," the banker said.


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Jay and LeeAnn Givan are two of those frustrated Americans who reached out to ABC News about their banks. They say they've run out of time and money. Both lost their jobs in the recession, and they have been begging their bank since last September to modify or refinance their mortgage. Six months later, all the paperwork and phone calls have amounted to nothing.

"The bank's not interested in helping us," LeAnn said. "Just a couple of weeks ago, Jay was on the phone for two hours being transferred from department to another department until finally somebody told him, 'Look, we can't help you until you stop paying on your house.'"

The couple made its last mortgage payment last week.

"I have heard that," the banker said. "That will affect their credit card, their insurance, [have] a big effect on their credit history."

The banker described homeowners pleading to him for help, but he said his bank is not interested in modifying mortgages, even after taxpayers helped bail out the nation's biggest banks.

"It's just not happening," said the banker.

The banker said there is significant pressure on bank employees to get customers to take on more accounts than they need because of the late fees and penalty fees that will then come from those accounts.

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Member Comments (56)

@Alphachic! I had the same issues with Bank of America, they hold your checks and run them all through to maximize your penalty, they did it many times too me even after I went in and showed them proof. I got out of Bank of America and I too have more money in my account! Good Riddance!

BCUSF 7:49 PMThey don't want to negotiate. They do better if they can either right the debt off on their taxes or take over the property ( the new emminent domain) and either sell the same property for a higher price or sell back the land to the city. Banks and mortgage lured people in and then did a bait and switch on us. Also refuse all the add-ons that they try to sell you. Refuse the accident insurance. Refuse the low-cost life insurance. Refuse the free credit report. Refuse the free credit report. Refuse any new services from them.

linedance79 7:48 PMIt"s so true so many people re conplaining about the same thiing including me I applied for modification more than six months now all you get is the run around call 1800 number .numerious times you call to find out the stautus of the modification they are still woking on it or they would ask for things that you already submitted prior These banks should be shame they got the TAX payers money then we the the tax payers getting treat like this this is what the peolpe in Congress and the Senate should be paying attention to instead there is no oversight on these institutions and there are more protected and care for than the average Joe Bank of America and these big banks are doing injustice to the customers and they are getting away with it

erviston 7:41 PM

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call and complaint about bank By Online Form:

Click here to view and submit the form.

By Phone:

Call toll free: (877) SIG-2009

By Fax:

(202) 622-4559

By Mail:

Office of the Special Inspector General

For The Troubled Asset Relief Program


1500 Pennsylvania Ave., NW, Suite 1064

Washington, D.C. 20220


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OneWest Bank accused of pushing home loan borrowers into foreclosure

Nineteen months after the catastrophic failure of one of Sacramento's top lenders, Pasadena-based IndyMac Bank, a flurry of local lawsuits alleges that the bank's successor – OneWest Bank – is systematically working to push home loan borrowers into foreclosure.

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The allegations filed in the Eastern District of U.S. Bankruptcy Court claim that OneWest can make more money by foreclosing than by keeping borrowers in their homes. That's due to its so-called "shared-loss" agreement with the Federal Deposit Insurance Corp., at least 10 local lawsuits allege.

A video made in Fairfield and circulating widely on the Internet also alleges that OneWest stands to earn millions from taxpayers by foreclosing on borrowers as a result of its shared-loss agreement with the FDIC.

The FDIC declined to comment on the Sacramento lawsuits, but it recently denounced the video's "blatantly false claims." The agency told The Bee that its agreement with OneWest contains provisions to make sure the lender is taking adequate steps to modify loans.

OneWest declined to comment on either the lawsuits or the video.

The FDIC, which seized IndyMac in July 2008, sold the failed institution to Pasadena-based OneWest in March 2009.

As part of the deal, the FDIC agreed to absorb some losses from the troubled loan portfolio. That's after OneWest absorbs the first $2.5 billion in losses, the FDIC said.

But Sacramento bankruptcy lawyer Peter Macaluso claims the shared-loss agreement will reward OneWest for foreclosing on homes. Here's how, he said: The company bought IndyMac's troubled portfolio at a 30 percent discount. It can count on the FDIC eventually reimbursing 80 percent or more of its losses – and also can keep proceeds from the foreclosure sales.

"They're deliberately blowing people out in a systematic pattern," said Macaluso.

He has filed eight lawsuits in U.S. Bankruptcy Court on behalf of area IndyMac borrowers who have filed for Chapter 13 bankruptcy protection.

Macaluso alleges that OneWest improperly boosted his clients' monthly loan payments – sometimes by more than $1,000 – by doing a new escrow analysis after they had filed for bankruptcy protection. He said his clients can't afford the increases and are in danger of losing their homes.

On Friday, he said OneWest has since rescinded the extra payments in three cases.

Elk Grove bankruptcy attorney Mark Wolff makes similar allegations in two lawsuits in U.S. Bankruptcy Court.

"We made the allegations that it's a systematic approach they've employed, and it's a violation of bankruptcy code," said Wolff. He said he previously filed similar actions against Bank of America and JPMorgan Chase. His clients also are still in their homes.

A third attorney, Sean Gjerde of Elk Grove, recently filed a civil suit against OneWest in Sacramento Superior Court. It alleges violations of the Truth In Lending Act, claiming that OneWest is unresponsive to attempts to modify an Elk Grove client's IndyMac mortgage.

"As soon as OneWest took over, the communication stopped," Gjerde said. "My client has been in default for a long time and it's been like heck to even get them to talk to me."

The local lawsuits represent another messy aftermath of IndyMac's implosion in July 2008, a development that added to fears of an imminent U.S. financial collapse.

IndyMac was a leading Sacramento lender, ranking 10th in loan volume during the riskiest part of the housing market: mid-2005 to mid-2007. Statistics from researcher MDA DataQuick show IndyMac made 5,312 home loans worth $1.4 billion during this period in Sacramento, Placer, El Dorado, Yolo, Sutter and Yuba counties.

A Treasury Department performance report last week showed that OneWest has temporarily or permanently modified 25 percent of its loans that are 60 days or more late. Twelve lenders reported higher modification rates and nine reported worse rates. The report said OneWest had permanently modified 3,087 of its 112,000 delinquent loans by the end of January.

The video criticizing OneWest and the FDIC has gone viral on the Internet in real estate and lending circles. It was produced by partners in a Web-based real estate and mortgage firm,

The FDIC said the video had "no credibility."

OneWest wouldn't weigh in. "We're not commenting at all," said bank spokeswoman Diane Henry. "I think the FDIC was pretty clear."

The FDIC said the insurance corporation – established in 1933 to protect customers' bank deposits – currently has 94 shared-loss agreements in place with financial institutions that assumed troubled loan portfolios. The agency said OneWest must absorb the first 20 percent of its loan losses – $2.5 billion – before it can receive government funds to cushion the rest. Then, OneWest can be reimbursed for 80 percent or more of its losses.

The FDIC said it hasn't yet paid a penny to OneWest. It also noted that OneWest owns just 7 percent of the loans covered in the shared loss agreement. The rest are owned by investors.

FDIC officials also noted that they can rescind the deal if OneWest isn't complying properly with its agreement to modify loans.

FDIC spokesman David Barr offered no comment on the Sacramento lawsuits filed against OneWest.

In Roseville, Emily Touchstone is not among those suing OneWest. But she is soon to leave for the East Coast after losing a house refinanced with a IndyMac adjustable-rate loan in 2006. She said she couldn't get a OneWest modification after starting the process in March 2009. In October she lost her job.

Touchstone told a story familiar in Sacramento: months of phone calls, fielding requests for more information and then still more. Months behind on payments, she recently lost the house to OneWest. She called it a "preventable thing."

In Elk Grove, Tom Cravalho said the Association of Community Organizations for Reform, the housing counseling group known as ACORN, dropped his case in December, saying it got little response from OneWest.

"They said there was no communication from your lender," he said.

Cravalho called his 2005 IndyMac adjustable-rate refinance loan a "mistake." Now, he and his wife fear losing a $200,000 down payment on the house they bought in 2002.

Trouble started in February 2008 when Cravalho lost his job running a Contractors State License Services School branch in Sacramento. Eventually he turned to attorney Gjerde for help with a modification.

Gjerde has tried, but recently filed suit against OneWest, saying the bank didn't respond to him, either.

"They aren't even paying lip service," he said. "At least some lenders pay lip service."

Posted originally: 2010-02-21 03:00:00


the goverment looks after a fraud mortgage co. and the same people own it donates millions to you know who????????????


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