Complaint Review: EMC Mortgage Co.

""Cher, here's what you don't seem to understand, WHAT A MORTGAGE SAYS. That's right, READ IT. Okay? Because until you do, you are talking out your butt and frankly, I am sick of it. You have no idea what you are talking about. Read the partial payment clause in ANY STANDARD MORTGAGE wherein it states they can hold any payments IN SUSPENSE until they receive the FULL AMOUNT DUE (meaning if you are 10 months behind, they CAN hold all of the incoming funds until they have all 10 payments AND THEN they apply the payments). This isn't some deep seated scam, they are acting well within the scope of the mortgage.

Please read a mortgage document and fast, so you will have knowledge about that which you blab incoherent things all the time.


Julie- Since I have experienced the corruption of this company & you have not- I think that you should stop before you ridicule people.

It's not the extra fees that EMC puts into a suspense fund that is wrong. They split your regular payments. They take part of your payment for their bogus fees & that leaves a shortfall in your P&I. The pennies that you have left over are put into a suspense fund WHICH NEVER APPEARS ON YOUR TRANSACTION STATEMENTS.

Getting a transaction statement is like pulling teeth. They ignore 1 year of RESPA letters asking for such.

EMC doesn't do what each individual loans states. They just go by the pool & servicing aggreement that the loan is grouped in with. Thats been admitted by te employees

EMC has no care to keep us as customers. Remember that they as the servicer of the loan only make a small percentage of the payment. The rest of the payment goes to the trustee, who distributes the money to the investors of the loan pool. But EMC makes their REAL money generating fees. They AREN'T making the huge amount of interest over the life of the loan- so they don't care how they treat you. It's not like you have a choice.

By all your defenses of this company- I can assume that you are employed by them. Good luck in court. As your daddy Bear goes down for fraud towards the investors of the MBS you sell, you will follow. Only we all won't settle for a fairbanks type settlement. We aren't after money. We want the crooks in jail.

BTW- hows the moving going? I hear it's a mess. Lose any documents?

Oh, it was just too much for you, Julie? Can't see from way up there?

And worst of all, you actually trust the government? Oh, you are a laugh a minute.

You keep preaching "Read your mortgage, read your mortgage, read your mortgage...blah, blah, blah"

This is the only sentence you need to understand from the whole article and it is only a partial sentence. Perhaps you can handle it.

"servicers have imposed uniform practices over a universe of loans without taking into account differences in the loan documents that affect payment priorities, notifications and fees."

This is telling you in plain English that certain servicers treat ALL mortgages the same. They don't know what your mortgage docs say and they give less than a rat's butt. They use a uniform platform for EVERY SINGLE MORTGAGE THEY SERVICE.

The servicers have not read the mortgage...duh! They are not interested in reading the mortgage. They don't care what your mortgage says. Once you are under their umbrella they use uniform servicing practices....developed by them to maximize profit. Fee generating programs.

What good is it for a borrower to know what their mortgage docs say when the servicer doesn't know and doesn't care?

When the servicer gets a loan to service, the mortgage contract goes out the window. Servicers most often do not have ANY of the docs in their office. They have not seen them....duh! They will never see them, duh!

I don't shive a git where you work, what you do, or about your three kids. What I care about is NOT letting you mislead people into thinking it is all going to be OK. If someone is getting fees they don't understand from a servicer, they need to go on the defensive immediately.

Try going to the FTC site and seeing what happened to Fairbanks Capital if you want government propaganda...er...information.

I don't need to read some article that was NOT published by the government and not based on anything really that factual.

Let's look at the orignal poster here and try to help her, instead of encouraging her with flagrant idiocies, how about encouraging her to read her MORTGAGE document, which outlines exactly what is happening here. You have never read a mortgage, it is obvious, and therefore don't understand that what is happening with her loan is NOT ONLY legal, but is within the bounds of a mortgage she signed. There isn't anything predatory in this post. You assume ALL posts are predatory, I think that is silly, read them, try to help these people understand. Don't scare them silly and act like you are helping. You aren't.

I don't work for a mortgage company, I am not a broker and while I was a cheerleader in highschool, that was years ago. I do know a lot about mortgages, I work for a governing agency, I don't know everything, but I do know enough to be able to intelligently tell this poster that nothing is inherently wrong with her loan.

Most people don't read any of their closing documents, me included. I had no idea what those 50 million papers said (yes, I know it wasn't REALLY that many). Once people gain a better understanding of it, it makes it easier to comprehend.

Based on what you are saying, EVERY SINGLE MORTGAGE is predatory because they add interest arrearages and pass on the fees to the borrower. Think about it, isn't that silly? Because 99% of all mortgage documents say the same exact thing.

Off to get my pom pons and get my pony tails pretty....

Cher,

Julie is cheerleading again and still trying to convince everyone that these things "just don't happen" and that all posters are wrong.

Many servicers have the same MO and none of it has anything to do with the mortgage contract. It has a lot to do with deliberately dishonest servicing practices.

Suck this up, Julie, and explain how this article could have been written over a year ago if these practices were never going on:

Lenders Urged to Examine Practices in Light of 'Predatory' Accusations

2004-02-04

In the wake of increased litigation against prominent loan servicers and subservicers, companies in the loan administration business should review their practices to ensure they are not leaving themselves exposed to litigation, two attorneys who represent mortgage lending clients told National Mortgage News.

Sam Waters and John Hearn of Rogers, Townsend & Thomas, Columbia, S.C., which has represented Fairbanks Capital and other lenders that have had to defend themselves against accusations of "predatory servicing," urge lenders and their general counsel to take a close look at practices and procedures to make sure that they are in compliance with regulatory requirements and the language of loan documents.

"There really are no differences in the issues between servicing and subservicing in terms of the legal issues pertaining to predatory lending or what is now being called predatory servicing," Mr. Waters said.

However, he said the contract between a subservicer and a client may include underlying issues such as indemnification language that could affect liability in the event of a lawsuit or fine. With court cases against Fairbanks and Ocwen in the news lately, Mr. Waters and Mr. Hearn believe that servicers will continue to be the focus of attention from consumer-oriented law firms.

"There are always law firms that are looking for cases that will have class-action possibilities," Mr. Waters said.

Predatory servicing is generally defined to be those activities that individually or collectively deny customers the information needed to make payments or bring a loan current, or practices that deny timely posting of payments. Certain collection practices that are deemed to be unfair or too aggressive can get lenders in trouble too, especially if they potentially result in violations of the Fair Debt Collection Practices Act.

Mr. Waters said the FDCPA is "an attractive law for the law firms to take action under because it provides for attorney fees."

Customer service problems such as putting consumers on hold for a lengthy period of time or failing to establish a relationship between the consumer and an agent or department so that the consumer has to tell their story again every time they call can trigger predatory servicing accusations, he said. Courts are not likely to focus so much upon the intent of a lender's action or failure to take action as they are to pay attention to the impact any action or failure to act had upon the consumer, he said.

That raises the bar substantially on the standards of service a lender must provide to loan servicing customers - even those who are in delinquency or default status. The publicity about predatory servicing "has raised the awareness of the customer's right to expect better customer service," he said.

Also, lenders that apply late penalties, which can pile up over several months and then accelerate the debt or proceed with foreclosure action will likely find themselves in trouble, he said. This was particularly a problem in the Fairbanks case, and the settlement essentially prohibits Fairbanks from pursuing foreclosure based on late charges.

Timely posting of payments has also been a problem, and if courts find a pattern of late posting of payments, that will spark concern, the attorneys said.

In addition, Mr. Waters said that too often, servicers have imposed uniform practices over a universe of loans without taking into account differences in the loan documents that affect payment priorities, notifications and fees. "One of the issues servicers have to be concerned about is not to charge administrative or other fees that are not provided for in the mortgage note or trust."

Moreover, recently enacted state predatory lending laws sometimes expand liability to the party that takes assignment of a loan, which means loan brokers may not be the only ones on the hook if it is determined that predatory lending practices have taken place in the origination process. In other words, thinly capitalized mortgage brokers that may be responsible for an infraction may not be the focus of plaintiffs' attorneys.

"When the broker does something improper and that impropriety is imputed to the owner of the loan down the stream, nobody is going to collect money from the broker. It's the deep pockets that are going to be facing the music," Mr. Hearn said.

Source: National Mortgage News

What in the heck are latte fees?
In addition, they don't CONVERT loans to simple interest. Conventional loan interest, that term makes no sense. Conventional is THE TYPE OF LOAN. Interest is what they charge you for loaning you the money. Conventional loans are 99.9% simple interest.

Cher, here's what you don't seem to understand, WHAT A MORTGAGE SAYS. That's right, READ IT. Okay? Because until you do, you are talking out your butt and frankly, I am sick of it. You have no idea what you are talking about. Read the partial payment clause in ANY STANDARD MORTGAGE wherein it states they can hold any payments IN SUSPENSE until they receive the FULL AMOUNT DUE (meaning if you are 10 months behind, they CAN hold all of the incoming funds until they have all 10 payments AND THEN they apply the payments). This isn't some deep seated scam, they are acting well within the scope of the mortgage.

Please read a mortgage document and fast, so you will have knowledge about that which you blab incoherent things all the time.

Once they have you in forebearance- they pyramid the latte fees for those srearages, They will also convert a conventional interest loan & turn it into a Daily Simple Interest loan. They did it to me.

Let me ask you a question- When they had you sign your forebearance agreement- They asked for any past due principle- right? You had to give them a lump sum down, always having to be western unioned by a certain date. Look on your account for that amount to apear. It won't. I went through 3 of those agreements in 3 years & made double payments. In the end of it all--- I owed more than I borrowed 7 years prior.

The suspense fund is where they put the rest of your payment after they split it to pay themselves their fees that are illegally generated, making it appear that you are in default- so they can get the late fees, & the other fees that EMC fabricates.

In general, if you mail a mortgage company for your regular payment $500 but your payment is only $450, if you don't spell it out for the mortgage company, they have NO CLUE where to put the remaining $50. So policy is usually to apply that money to a "suspense account". This is another term for we don't have enough to post a payment and/or the borrower didn't clarify what they wanted us to do so we are putting it on this shelf here until further notice. Often, if you go into a 2nd month with money in suspense, they apply it to your escrow account.

The best way for you to handle this situation is to request from your mortage company, IN WRITING, a detailed "transaction history" for the time they have been servicing your loan.

Once you have that in hand, take that and your cashed checks showing payments and meet with a housing counselor. These counselors are NOT FOR PROFIT, so there isn't some cost with meeting with them, and they can assist you with understanding what has happened and in addition, can point out if there is some further dispute you need to do to in order to straighten things out. Housing counselors can be reached at 800.569.4287. Good luck.